KRA TO ACCESS AND MONITOR TAXPAYERS BANK ACCOUNTS IN KENYA
For Tax purposes KRA now is able to monitor tax payers bank accounts. In a directive given by CBK, all banks have been directed to ask for Personal Identification Numbers (KRA PIN) certificate before signing in a client. To reinforce this, it was passed in the Tax Procedures Act of Kenya that reads ‘Pursuant to the Tax Procedures Act No. 29 of 2015, Section 13, a person shall state his or her PIN in undertaking any of the transaction specified in the First Schedule’
This will enable KRA to view person’s bank account(s) from one platform and compare the same with the returns.
Transactions for which PIN is required are;
- Registration of titles and stamping of instruments.
- Approval of development plans and payment of water deposits.
- Registration of motor vehicles, transfer of motor vehicles, and licensing of motor vehicles.
- Registration of business names
- Registration of companies.
- Underwriting of insurance policies.
- Trade licensing.
- Importation of goods and customs clearing and forwarding.
- Payment of deposits for power connections.
- All contracts for the supply of goods and services to Government Ministries and public bodies.
- Opening accounts with Financial Institutions and Investment Banks.
Currently the financial institutions are regularizing to comply with this legal provision (which came to effect on 19th January 2016) by calling upon the clients to supply them with the PIN details. Organizations like registered societies, members associations, Trusts, NGO’s will be affected.
All this is geared towards ensuring that all Kenyans pay their accurate tax amounts.
6,013 comments on this post