This Is How iTax Works

ver the years, Kenyan taxpayers have been filing tax returns manually every time they are due. This process has been lengthy and cumbersome since taxpayers had to go to a Kenya Revenue Authority (KRA) office to submit these returns.To improve domestic tax services, KRA has introduced iTax system, a webbased system intended to deliver services to taxpayers effectively and efficiently. This is also intended to improve collection and enable convenient and improved taxpayer compliance. The iTax portal enables taxpayer registration, filing of tax returns and other key compliance functions such as issuance of Tax Compliance Certificates, refunds, waivers and tax exemptions. You can also update your tax registration details and monitor your account in iTax system.To help spread awareness and improve on the understanding of how the iTax system works, Bloggers Association of Kenya (BAKE) last evening hosted an iTax team from Kenya Revenue Authority (KRA) at Nailab, Bishop Magua building.According to the KRA iTax team present, the iTax system automates everything therefore you don’t have to submit physical forms while filing your tax returns. They have now done away with the manual system whichwas very inefficient and cumbersome. This iTax system also allows taxpayers to register for the first time and apply for a PIN, without having to go to KRA. For those who have PIN from the old system, they will simplyupdate it in the iTax system before proceeding.The KRA iTax team stated that among the services that used to be manually offered such as tax compliance certificate application can now be done conveniently online using the iTax system. You can check the status of your application and print your tax compliance certificate (TCC) once approved. Through the TCC checker in the same system, you can verify your TCC.Using the iTax system, taxpayers can file returns for PAYE, VAT and individual returns after registering in the system. It is very important to provide a reliable e-mail address which you can easily access since your password will be sent to this e-mail address. ITax system also allows you to change your email address.According to the iTax team present yesterday, all taxpayers must file their tax returns by the June 30th deadline to avoid penalties. If you don’t file your returns by this date, the system will automatically penalize you. They further stated that this deadline is set by law and filing of returns cannot bean open process, as many taxpayers have requested.In the iTax system, taxpayers can also check and print withholding tax certificate and apply for waiver. If you have no taxes to declare, you can file a NIL return on iTax system. This is done by going to the Returns tab and picking file NIL return on the drop-down menu. The iTax system is Excel based with formulas. To ensure that the system works properly, you must enable macros in your Excel, otherwise you may end up with errors.The audience had many questions for the KRA team regarding tax refunds and waivers. As far as tax refunds are concerned, the KRA team agreed with the audience that it takes a long time to get any refunds but clarified that refunds have to be allocated by the Treasury, not KRA. Other queries on tax waivers and penalties just couldn’t go away but to improve the experience, taxpayers are also expected to provide accurate information and pay their taxes and file returns within the given period to avoid penalties.The evening ended with a feeling that more such sessions need to be organized frequently to clear the air not only on iTax system but the issue of taxation as a whole. It is now just 2 weeks to the deadline, have you filedyour returns on iTax system? There will be no more manual filling of forms,just clickHEREtoday and avoid penalties.