Tag Archives: KRA tax returns

KRA news: Tax Agents Charged for Aiding Tax Evasion

Three tax agents were today charged at a Mombasa court for aiding two companies to fraudulently reduce their Value Added Tax (VAT). The two were charged alongside directors of the two companies.

The tax agents from Ogot and Associates, together with directors of Gaab Transporters Limited and Samumu Construction Services were charged with several counts in two separate cases. They appeared before Mombasa Senior Resident Magistrate Christine Ogweno.

In one of the cases, the accused persons, Mohamed Moalin Mohamed, a director of Gaab Transporters Limited as well as Wilson Ogot Owera, David Osore Wesonga and Rolland Anakaya Chiriswa, tax agents to the company, were jointly charged for knowingly making an incorrect statement to the Commissioner for Domestic Taxes in the company’s Value Added Tax (VAT) returns for the months of March, April, May and June 2016 thereby reducing the company VAT liability for the months by Ksh1,593,908.

In the second case, Sammy Kamuio, a director of Samumu Construction Services Limited together with tax agents Wilson Ogot Owera, David Osore Wesonga and Rolland Anakaya Chiriswa, were charged for making an incorrect statement to the Commissioner for Domestic Taxes in the company VAT returns for the month of April 2016 , thereby reducing the company’s VAT liability for the month by Ksh.552,672.

The total amount of tax evaded by both companies amounts to Ksh2,146,580.

All the accused pleaded not guilty in both cases and were released on a bond of Ksh200,000 with an alternative cash bail of Kshs100,000. The two cases will be heard on 17th October 2019.

The court summoned Ali Osman Osman a director of GAAB Transporters Limited, and Abdulhamid Habia Khan and Jones Muthengi Mukuri directors of Samumu Construction Services Limited to appear on 17th October, 2019.

Important links:

TSC tells teachers to file income tax returns for 2018; procedure for filing income tax returns

The Teachers Service Commission, TSC, has asked teachers to file their 2018 income tax returns. Via a circular dated 4th February, 2019 the TSC boss, Dr. Nancy Macharia, says the Commission has uploaded the tax deduction forms (P9 forms) onto their website at https://tsc.go.ke/index.php/online-services/online-payslips

Dr Nancy says teachers and other TSC staff are expected to download the forms from the website and file their returns with the Kenya Revenue Authority, KRA. “All TSC employees are required to file their individual income tax returns online through Kenya Revenue Authority I-tax platform, i.e https://itax.kra.go.ke  by 30th June, 2019,” says the TSC boss.

Last year, a number of Kenyans were fined for failing to declare their returns within the stipulated time frame. All Kenyans with the KRA Personal Identification Numbers (PINs) are expected to file their returns with the tax man. Nonsalaried Kenyans will be expected to file Zero returns. It is important that you file your returns early to avoid the last minute rush and/ or a penalty of KShs. 20,000

TSC staff who may experience problems during the filing process can contact the Commission or seek assistance from KRA service Centres across the country. KRA offers free tax filing services at all Huduma Centres; countrywide.

In case you need to file the returns by yourself, use the procedure in the link below:

Simplified procedure for filing KRA returns, online:
How to reset the KRA I- tax Password in case you forgot it.

KRA has Simplified the Tax Filing for those in Formal Employment and other news features

KRA SIMPLIFIES TAX FILING PROCESS FOR THOSE IN FORMAL EMPLOYMENT

The Kenya Revenue Authorithy, KRA, has simplified the tax returns filing process for those in formal employment. The agency has included auto-populated information from employment income in the iTax system.Employees will now be expected to verify correctness of the populated information and also fill in only pension and annual relief data. This is a break from the norm where employees have to spend long hours filling the Excel data capture sheets from the taxman.

“KRA has enhanced iTax to have an auto-populated return of employment income. This has made it much easier, smoother and faster for employees whose source of income is only employment to file their returns,” KRA said via a statement on Friday, 22nd February- 2019. For employees the information on the KRA PIN is automatically captured by iTax and fed onto the employee’s account; when employers provide Pay As You Earn, PAYE, declarations.

One should Log into iTax portal>Returns>ITR for Employment Income only. The deadline for filing 2018 tax returns is 30th June, 2019.

BACK TO SCHOOL

Schools resumed for the second part of first term, today, after the one week halfterm break. Schools will close by 5th April, 2019.

EDUCATION MINISTRY SUSPENDS THE AMBITIOUS LAPTOP, TABLETS ISSUANCE PROGRAMME.

The Education Ministry has announced the suspension of issuance of tablets to Class One pupils under the digital literacy programme. Instead, the Ministry will embark on another project of building computer laboratories for Primary schools across the country. Education Ministry’s Principal Secretary Dr. Bellio Kipsang now says that each of the 25,000 public primary schools in Kenya will get one computer laboratory to help in ICT (Information Communication Technology) Integration in the Teaching- Learning process.

HIKE FEES AND WE GO TO THE STREETS- UNIVERSITY STUDENTS WARN

Various Universities’ Student leadershave warned that they will hold demos if Universities do not drop the proposal to hike their tuition fees. Led by Nairobi University’s Makori Orina, the students said they will on Monday next week hold countrywide demonstrations to protest the raising of fees from KSh16,000 to KSh 48,000.

KRA Pay As Your Earn, PAYE, tax- Individual Income Tax Bands and Resident Personal Relief

Employees working in the formal sector are subjected to a monthly Pay As You Earn, PAYE, tax that is deducted from their salaries. The deductions are effected by the employers and sent to the Kenya Revenue Authority, KRA. The amounts of taxes payable depends on the amount of salary earned by the employee. Each employee enjoys a monthly personal relief.

“Kenya Revenue Authority wishes to notify employers, employees and the public of the following changes that were introduced under the Finance Act, 2017 effective 1st January, 2018,” reads a notice by KRA dated 9th January, 2019.

Revised Individual Tax Bands and Rates

According to the circular, the new tax bands and rates are as follows:

Annual Monthly Rates;
a). On the first Kshs. 147,580 Kshs. 12,298 10%
b). On the next Kshs. 139,043 Kshs. 11,587 15%
c). On the next Kshs. 139,043 Kshs. 11,587 20%
d). On the next Kshs. 139,043 Kshs. 11,587 25%
e). On all income over Kshs. 564,709 Kshs. 47,059 30%

Residents’ Personal Relief

The Resident Personal Relief has been increased from Kshs. 15,360 per annum (Kshs. 1,280 per month) to Kshs 16,896 per annum (Kshs. 1,408 per month)

“Employers, employees and other individual taxpayers are advised to implement the above changes while computing the taxes for periods beginning 1st January, 2018,” adds the tax man

KRA also expects the employees to file annual tax returns, online, between January and June each year.