The Kenya Revenue Authority (KRA) deadline for taxpayer’s to inquire on migration of their VAT and Income Tax Ledger balances from the Legacy System to the iTax System is today. As a result, effective tomorrow, any migrated debit balances will be considered outstanding taxes, while any migrated credit balances will be treated as overpayments available for use in offsetting future tax obligations.
This is in accordance to in accordance with Section 47(1)(a) of the Tax Procedures Act, CAP 469B.
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Based on communication from KRA, the migrated balances had already been communicated to the respective taxpayers through their iTax registered email addresses.
In case of inquiry, KRA wrote on 31st July, “The migrated balances can be accessed in the taxpayer’s iTax profile in the General Ledger under the ‘Account Type Taxpayer Legacy Account’ Menu. Detailed statements of the migrated balances are now available for download from iTax under the ‘Debt & Enforcement’ Menu.”
Further for Kenyan taxpayers, their debit and credit balances may be adjusted if additional information, previously not considered by the KRA, becomes available and affects the migrated balance.
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Some Kenya tax law experts have expressed that KRA iTax directives are unlawful measures being used to exploit unsuspecting taxpayers for billions.
