The Kenya Revenue Authority (KRA) has initiated a cleanup of its digital system to identify inactive taxpayers and eliminate fraudulent accounts.
In a public notice, the KRA instructed all registered taxpayers to update or correct their registration details as part of an ongoing data cleanup of i-Tax, the system used for electronic filing and payments.
The tax authority stated that the current data cleanup of taxpayers’ Personal Identification Number (PIN) registration details aims to maintain the integrity of the taxpayers’ register and improve service delivery.
“As part of the data clean-up exercise, KRA has rolled out One Time Password (OTP) for update of taxpayers’ contacts in the iTax system,” KRA announced in a public notice published on Monday.
It added, “Upon logging into iTax, the system will display the mobile number registered in iTax through which an OTP will be sent for validation of contact details. Where the number is incorrect, taxpayers will be required to capture the correct mobile number through which an OTP will be sent to enable access to the iTax system.”
The taxman requires taxpayers to update or correct registration details such as phone numbers, physical addresses, email addresses, business locations, residency status, and directorships or partnerships held.
KRA has been grappling with a longstanding issue of fictitious invoices generated by fraudulent business entities registered in the i-Tax system, resulting in an alleged loss of nearly Kes.30 billion in unpaid taxes.
Known as the “Missing Trader Scheme” within tax circles, KRA investigators estimate that approximately Kes.65 billion worth of fake invoices have been issued since 2015, with the highest activity recorded in 2016, involving Kes.32 billion worth of fraudulent supplies.
