The Kenya Revenue Authority (KRA) has announced intermittent disruptions affecting its iTax system, days before the September 20 deadline for filing Value Added Tax (VAT) returns.
In a notice on September 16, KRA said its technical teams were working to resolve the problem and restore normal services.
“We are currently experiencing intermittent disruptions affecting the iTax system. Our technical teams are actively working to resolve the issue and restore normal services as soon as possible,” the authority said.
Taxman Announces iTax System Downtime Ahead of September 20 VAT Filing Deadline
KRA advised taxpayers experiencing difficulties to try accessing the services again after confirming the system was down.
“Please note we are currently experiencing a system downtime; kindly try again later. Apologies for the inconvenience,” KRA responded.
The disruption comes as taxpayers prepare to file their August VAT returns ahead of the September 20 deadline.
Also Read: KRA Explains Why August Invoices Are Missing From VAT Returns
Some taxpayers have raised concerns over their ability to meet the deadline if the system remains inaccessible. One social media user, Alfred Gacheru, questioned how taxpayers were expected to file their returns while experiencing difficulties on iTax.
“How exactly are we going to file VAT when your system doesn’t allow? And some August invoices are still not on iTax?” Gacheru asked.
In response to taxpayer complaints, the authority said it was experiencing intermittent disruptions affecting the iTax system.
The iTax platform is KRA’s online tax administration system used by individuals, businesses, employers and tax agents to file returns, make tax payments, apply for tax compliance certificates and access other tax-related services.
KRA Tax Compliance Challenge
The system disruption comes as the authority continues to pursue measures to increase tax compliance and close gaps in revenue collection.
The tax authority estimates it loses more than KSh500 billion annually from the personal income tax gap. According to KRA data, only about 40 per cent of registered taxpayers are actively filing returns and remitting taxes.
Also Read: Ruto Signs Law Giving KRA New Role in Air Passenger Charges
On the corporate side, more than 3,000 large businesses and over 6,000 medium-sized enterprises and corporations account for about 60 per cent of realised revenue.
KRA has also reported significant gaps in other tax categories, with potential VAT collections estimated at KSh1.031 trillion against realized collections of KSh653 billion, leaving a gap of about KSh378 billion.
In rental income tax, collections stood at KSh13.7 billion against an estimated potential of KSh80 billion, creating a gap of KSh66.3 billion.
KRA says improving compliance and closing just 25 per cent of the regulatory and enforcement gap could significantly increase rental tax revenues.
The authority has continued to expand the use of technology to improve tax compliance and verification of business activities.
Among the measures introduced are the Electronic Tax Invoicing Management System (eTIMS), participation in the Common Reporting Standard for the exchange of financial information, and integration with banking and mobile money platforms.
The authority has also introduced the Shuru service on WhatsApp to simplify the filing of employment income returns.
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