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KRA to pursue non-filers of tax returns, face Sh20, 000 fine

Kenyans who have not filed their returns with Kenya Revenue Authority risk a fine of Sh20, 000.

The taxman on Tuesday said workers and business people who failed to declare their income to the State will be pursued in a move geared to bridging tax shortfalls for KRA.

Official data from KRA shows that out of the 2.6 million Kenyans working in the formal sector and  13.3 million in the informal sector; only 2.4 million of the lot filed their returns as at June last year.

This has created a target shortfall of about 29.7 billion shillings for KRA.

Thus, Treasury noted according to Daily Nation, “The Government is going to undertake a combination of policy and administrative reforms to bolster revenue yields going forward.”

In the new plan to nab tax cheats, KRA will review data iTax- a platform linking government’s payment system to the online tax register.

Here, those who have not filed returns yet have made millions in their businesses will be mapped out.

Other measures, noted the Treasury, will include data matching and use of third-party data to enhance compliance by integration of iTax with IFMIS.

A similar exercise last year saw over 95, 000 PIN accounts deactivated as tax cheats were rounded up.

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