The Kenya Revenue Authority (KRA) has successfully migrated VAT and income tax ledger balances from its legacy system to the i-tax platform. This transition aims to ensure the settlement of historical taxes owed by taxpayers and to facilitate accurate payment of VAT and income tax. Taxpayers have been informed of their migrated balances through their registered email addresses.
The migrated VAT and income tax ledger balances can be accessed directly through the taxpayer’s i-tax profile. Taxpayers can download these balances by navigating to the “Debt and Enforcement” menu within the i-tax system. This accessibility ensures that taxpayers can verify their balances, address any discrepancies, and comply with their tax responsibilities in a timely manner.
The debit/credit balances are subject to adjustment based on any additional information that was not previously considered by the KRA during the reconciliation exercise of the taxpayers’ accounts in the legacy system. Any new data provided by taxpayers, which may impact their tax liabilities, will be reviewed and the balances will be adjusted accordingly.
Validated credit balances that qualify as tax overpayment will be available for utilization against future tax liability in accordance with the provisions of Section 47(1)(a) of the Tax Procedures Act Cap 469B. This provision ensures that taxpayers can efficiently apply their overpayments towards upcoming tax obligations, enhancing financial management and compliance.
The migrated debit balances from the legacy system are not considered tax assessments or demand notices and, therefore, are not subject to objection or appeal processes. These balances are open to adjustments by KRA and taxpayers based on any additional information provided where applicable. Taxpayers have until 31 December 2024 to raise any concerns regarding the migrated debit balances for resolution. Any debit balances remaining unresolved after this date will be confirmed, and demand notices for the taxes due will be issued. This deadline ensures a clear timeframe for addressing discrepancies and finalizing tax liabilities.
The successful migration of VAT and income tax ledger balances to the iTax system is a critical advancement in Kenya’s tax administration. By ensuring the settlement of historical taxes and facilitating accurate tax payments, this initiative will significantly benefit both taxpayers and the KRA. The clear communication of these balances to taxpayers reinforces the KRA’s commitment to transparency, accuracy, and compliance. This modernization effort will enhance tax compliance, operational efficiency, and overall trust in the tax system.