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The Kenya Revenue Authority is now reviewing taxpayers ‘ documents for the year 2018 that submitted nil yields.
According to recent reports, only 3.5 million individuals had performed it during the six-month filing period, compared to the nine million targeted taxpayers.
However, the majority of individuals filed NIL returns despite been legible to pay. KRA has suspected that, by choosing the nil choice that is simpler and quicker, most individuals submitted nil returns during or towards the deadline to prevent penalties that come with late returns.
Those discovered to have misrepresented their revenue by filing nil returns on receipt of taxable income will be anticipated to file an amendment declaring the correct state of affairs.
KRA will then have to approve the amendment, which requires more data from the taxpayer in the process.
According to reports, using data analysis technology, KRA will compare the taxpayer’s return against their transactions with third parties.
The taxman also plans to develop a Tax Invoice Management System (TIMS) digital tax register to assist track tax defaulters.
The TIMS scheme will assist KRA in tracking company transactions through the previous checking of suppliers ‘ invoicing processes and in some manner linking purchases to sales to guarantee complete taxpayer disclosure of revenue.