KRA will now know how much your business makes daily

KRA will now know how much your business makes daily

July 18, 2019 0 By mykenyancareers
KRA TIMES TOWER - KRA will now know how much your business makes daily
Kenya Revenue Authority (KRA) says it plans to launch and install electronic tax registers system to businesses across the country that will help them access invoices issued by the traders/FILE

NAIROBI, Kenya, Jul 18- Traders’ daily sales will be tracked by a new technology system that will help catch  tax evaders.

According to a notice issued by KRA, all traders, manufacturers and suppliers will be forced to have the proposed Internet-enabled electronic tax registers (ETRS) that will allow tracking of any business deals.

“KRA is implementing a Tax Invoice Management System to achieve validations and authentications of tax invoices at trader tills before a generation of the invoice along with their real-time or near the real-time transmission, “says the tax collector.

The new Tax Invoice Management System will connect the trader’s systems, tax registers, point of sale and an invoicing track system with iTax to monitor the generation of electronic tax invoices and their transmission through the internet to it.

“Tax Invoice Management System (TIMS) will enable KRA to make enhancements to iTax to increase its efficiency and effectiveness in tax administration through simplification of its user’s interaction,” KRA said in a notice.

Businesses that generate over Sh5 million per month will not have a choice as the Authority has made compulsory for them to adopt the system.

Failure to submit information on the system will see traders prohibited from conducting their businesses. This means that traders who will have not logged in their correct business transactions of the will be stopped from operating the following day until they submit correct information.

“The control unit should send end of day summary after all the invoices for the respective day have been transmitted, and before starting invoice transmission for the next day,” says the Taxman.

The new development comes at a time when KRA has missed its revenue targets, year in year out and is now working towards increasing its tax base and getting tax cheats to meet the revenue targets set by the Treasury.

In the new financial year that started last month, KRA has been given a target of Sh1.87 trillion, up from Sh1.65 trillion in the last financial year, 2018/2019.