Kenya Revenue Authority breaks down iTax at an informative session

Thursday 18th June saw officials from the Kenya Revenue Authority lead a session on iTax at the Nailab hosted by BAKE (Bloggers Association of Kenya). I attended the session as I had several questions on iTax that I needed answered as I am along with everyone else, filing my taxes. The aim of the forum was to demystify taxes especially in light of the new system, iTax.

iTax (Integrated Tax Management System) was introduced in a bid to make filing taxes easier for both the citizen and Kenya Revenue Authority (KRA). The government recently unveiled a Ksh 2.1 trillion budget and it is therefore in order for KRA to try and streamline its processes so as to increase collection capacity. The new system allows taxpayers to authenticate information such as PIN (Personal Identification Number) and TCC (Tax Compliance Certificate) hence eradicating loopholes for the dissemination of false information. The system also reduces the need for face to face interaction, thus reducing incidents of corruption and provides instant feedback as an acknowledgement of transactions made by taxpayers.

iTax was introduced in 2013 and has led to the reduction of the filing period for the average taxpayer. As the system requires one to have an intermediary level of computer knowhow which a sizeable number of taxpayers may not possess, KRA has set up support centers around the country. Currently, support is available at Huduma Centers, with additional centers expected to be operational within the year. KRA is also offering free iTax training to citizens with a focus currently on accountants and cyber café operators.

The session with KRA officials featured a step by step walk through the system. The first part of the system is generally straightforward as it mostly consists of registration. You can apply for a PIN on the site if you don’t have one, or enter an existing PIN. After entering your PIN, they are a few details to fill in that mostly consist of information like ID and phone number. After completing this section, you then enter an email address that serves as your point of communication with the system. It is therefore very important that you make sure you’ve entered your correct email address as the system sends your password here. You can then log on to the system, change your password and download the tax returns form in either Excel or ODS. When you are done, simply upload the form onto iTax.

Digitizing tax collection is definitely a plus as it makes it easier to retrieve tax information for both tax payers and KRA. Corporates can easily verify that a company they are looking to give business is tax compliant. With PIN checker, employees and businesses can verify that individuals or companies have given them their correct details. Employees can check to verify if and how much their employer submits to KRA on their behalf. Employers can also check how much the accountant is submitting to KRA and in fact, can open different accounts such that they can have two accountants, with one working on VAT and another on PAYE. The iTax system seals loopholes that have otherwise dogged the tax system, making it more convenient for all parties involved.

Some of the questions from the session focused on security worries, with there being concern that the system was insecure and the minimal intuitiveness of the system which led to confusion when taxpayers were filing returns. KRA officials assured us that they were working on making the system more robust and intuitive and that feedback on the same was welcome. Other questions and comments were on filing taxes, which were not exhausted during the session. We requested another session to go over what we did not cover and hopefully it will take place soon.

If you have any questions or require support, you can contact KRA through their Facebook and Twitter pages, or via email at dtdonlinesupport@kra.go.ke. For Nairobi, you can also reach them on telephone through 0202398470, 0771628105, 0202398526.