17 March 2014

Kenya: Kra Plans Upgrade of Itax System to Reduce Traffic At Its Offices

KENYA Revenue Authority plans to modify its new electronic tax management system(iTax) to include basic taxation services still crowding its halls. Taxpayers seeking tax clearance certificates and driving licences "will in near future" not be required to cue at KRA's offices, commissioner general John Njiraini has said.

Medium and large taxpayers who have been using the iTax system to register, file and pay their returns will soon also be able to know their tax status including account balance through the same electronic system, Njiraini said on Friday.

Large taxpayers are companies with annual turnover of over Sh750 million while medium taxpayers have an annual turnover of between Sh300 million and Sh750 million. The system, he said, ultimately targets all those services that are driving "large numbers of taxpayers to KRA offices."

"The iTax system enables taxpayers to access a whole range of services from the comfort of their chosen location," Njiraini said. "We hope to make the taxpaying experience better if not more pleasurable." The system however collapsed over a week ago, inconveniencing medium and large taxpayers who are restricted to use it when registering, filing and paying their returns.

"The problem has now been fixed," the chief taxman said. "No taxpayer will however be penalised for an error that emanated from our system." The iTax system was developed by India's Tata Company and its full roll out will replace Integrated Tax Management System which has been in use since 2007.

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