Every year starting from January 1 to June 30, millions of Kenyans file zero or nil returns to the Kenya Revenue Authority (KRA). Unlike the previous years though, this year, there may be a sigh of relief for this category of returnees.
This is because KRA has suspended the filing of nil returns for 2017 on its automated tax payment service iTax. Nil income tax return shows the taxman that a taxpayer falls below the taxable income and therefore did not pay taxes during the year. iTax was launched in October 2013, as part of KRA’s modernisation reforms aimed at simplifying the filing of tax returns and gathering deeper data to seal tax-evasion loopholes.
Nil return system upgrade
“The Kenya Revenue Authority (KRA) would like to advise taxpayers who file NIL returns to be patient as our technical team works on reconfiguring the iTax system to facilitate you better,” said KRA in a notice.
Under the law, anyone with a Personal Identification Number (PIN) must file a return annually — including a nil return. But there is no separate form or process for filing nil tax and the entire process is similar to filing a normal return.
KRA reported that 2.4 million workers and businesses filed their returns by end of June last year deadline.
KRA’s tax return system is one of the most complex. There have been millions of complaints that the system should be reviewed to make it more user-friendly for Kenyans in vain.
Every year, millions of Kenyans fail to file their returns mainly due to the complexity of using the system which has been a put off for many.
iTax too complex
“The iTax has come a long way since inception. However, it is still plagued by glitches and downtime due to technical issues,” says Mbiki Kamanjiri, a tax manager at Grant Thornton Consulting.
Currently, when you file a nil return, you have to tick all the boxes even if you have no income from a particular source.
