The Kenya Revenue Authority (KRA) is set to deactivate 66,269 Personal Identification Number (PIN) for those individuals who failed to heed their warning and file their returns come Thursday this week.
The taxman issued a notice last month warning Kenyans that they are likely to lose their PINs should they fail to file their returns before the June 30, 2021 deadline.
“Kenya Revenue Authority (KRA) would like to notify the public that taxpayers who are registered under the Value Added Tax (VAT) Act, 2013, and the Income Tax Act, CAP 470 Laws of Kenya are required to file their returns under the respective laws,” read the notice.
PINs belonging to individuals and businesses will also have their VAT obligations cancelled and deregistered.
The taxman targets taxpayers who have continuously failed to file their tax returns with the deactivation and cancellation exercise which is continuous.
“Deregistering or cancelling of VAT obligations is a continuous excise and will affect taxpayers who perennially fail to file their VAT monthly returns or those who persistently file nil VAT returns, among others,” read a public KRA notice.
Those affected taxpayers will just keep their PINs however, they cannot conduct any business as their accreditations will be frozen by KRA.
KRA says that it will not grant the owners of the deregistered PINs immunity from past tax obligations.
“Deregistered taxpayers will remain liable for any acts done or omitted while they were registered for VAT obligation. Taxpayers whose VAT obligations are cancelled are reminded that charging VAT without an active VAT registration is an offense,” read the statement in part.