Kenya Revenue Authority engages reverse gear as reforms run into headwinds

By WINSLEY MASESE

NAIROBI, KENYA: Kenya Revenue Authority (KRA) has extended the deadline to June for taxpayers to file their returns online following system failure.

In what the taxman described as an overwhelming demand for the Tax Management System (iTax) services, amid data inconsistencies and system unavailability, taxpayers will now file the returns manually.

“This has posed numerous challenges such as data inconsistencies and system unavailability due to unprecedented demand, which need to be resolved to allow for efficient accessibility to the system by users,” said Commissioner of Domestic Taxes Alice Owuor.

Owuor said that the authority is also exploring ways to spare taxpayers who might have delayed in making returns due to the system failure.

“We will consider favourably those who will be affected by the failure and look at all avenues including waiving the penalties,” she said.

The new system was launched barely a month ago in an attempt to improve efficiency and enhance tax collection. Payments to be mace as before include VAT, Pay As You Earn, Stamp duty, excise duty, Kenya Bureau of Standards, Sugar Development Levy and rent.

Ezekiel Saina, commissioner in charge of ICT, however, said they have adequate infrastructure to cope with it. “We need to fine tune the application to make it operate more optimally,” noted Mr Saina.

Rollout of the system came into effect from March this year and to deal with the failure, a comprehensive work plan based on turnover and sector will be expected to be on board.

The Taxman has also instituted measures to beef up support in all domestic taxes department and stations countrywide.

Payment for withholding tax, advance tax, corporation taxes, individual taxes and instalment taxes will be made through Real Time Gross Settlement Transfers to Central Bank.