The Kenya Revenue Authority has announced a 30-day ultimatum for all PIN number holders who fail to file tax returns and pay income and value added taxes.
There will be no more penalties for non-compliance, even if the returns are zero, but cancellation of the PIN numbers will take place.
In a notice published yesterday, Monday, May 3, in major national newspapers, the IRS announced that it will delete all data of non-compliant PIN holders from its national servers.
"The Kenya Revenue Authority (KRA) wishes to inform that taxpayers who are registered under the Value Added Tax (VAT) Act, 2013, and the Income Tax Act, CAP 470 Laws of Kenya are required to file their returns under the respective laws," the notice reads, "In the event of non-submission of tax returns, unless cause to the contrary is shown, the Commissioner of National Taxes will arrange for the identification of their PINs resulting in the deletion and deletion from the KRA system at the expiration of thirty days from the date of this notice.
As a reminder, without the PIN issued by the KRA, companies will be prevented from conducting any business in the country and working in all areas where the PIN is mandatory.
Citizens, residents and owners of property (including cars, for example) and anyone with employees even in private homes, could also face difficulties.
Without KRA pins, both individuals and companies will find it difficult to conduct business in the country and find jobs in companies where the KRA pin is mandatory.
The government tax authority has reminded that the 30 days will allow anyone who owes the state or has arrears, to apply for interest and penalty remission, but it must be done during this period.
The deletion from the books is part of the KRA's intensified crackdown on tax cheats and corruption that threaten the country's revenue collection system, which is in dire straits to cover this financial year's budget deficit.
The effects of the possible persecution of reticents may go so far as to put assets or property in default and collect duties directly from suppliers or financial institutions.
After deregistration, affected individuals may not be able to register, transfer or obtain vehicle licences and the registration of companies in their name may no longer be possible.