The Kenya Revenue Authority (KRA) is set to blacklist a total of 66,269 personal identification numbers (PINs) effective June 10th.
The deregistration of the PINs is part of KRA’s efforts to enforce tax compliance as provided for by the Tax Procedures Act 2015.
The PINs are linked to individual accounts, companies, schools, and self-help groups that have persistently failed to file returns.
Affected taxpayers will be barred from charging VAT on their supplies and making input VAT claims on supplies. Their VAT obligations will also be deregistered and canceled.
“Deregistering or canceling 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,” KRA said in a public notice.
“All VAT registered taxpayers are therefore advised to comply with their tax obligations to avoid deregistration or other punitive enforcement measures as provided in the tax statutes.”
Delisted taxpayers will not enjoy immunity from past tax obligations and will retain their PINs but will not be able to transact any business.
A KRA PIN is a prerequisite to many processes such as the opening of bank accounts, job applications, land registration, among others.
“Deregistered taxpayers will remain liable for any acts done or omitted while they were registered for VAT obligation. Taxpayers whose VAT obligations are canceled are reminded that charging VAT without an active VAT registration is an offense,” KRA added.