KRA Plans To Deactivate PINS
KRA intends to deactivate several PINs of non compliant individuals and businesses. They announced that those who do not comply by 30th of June will have their PIN deactivated. This is a move to get people to file their pending taxes as well as any penalties that are pending.
This could mean that several companies may end up forcing to shut down if they do not comply. This is because a Tax compliance certificate and the PIN is necessary when it comes to accessing some opportunities such as procurement, opening new bank accounts also renewing a business permit.
It may also pose a great challenge to young people seeking employment. This is because some companies will ask for a tax compliance certificate. All this comes at a time where we are faced with economic hurdles we are all facing as a result of the pandemic.
The move seems to be aiming to get people to file taxes quickly and be more disciplined in filing the tax returns. Individuals can apply for waivers and also arrange for negotiate payments with KRA in order to avoid their iNs from getting deactivated.
The annual budget period is almost here. Therefore it makes sense why the KRA would be threatening to close PINs. Whether this strategy is good for the overall economy or not remains to be seen. However, if you file your taxes then you’d have nothing to worry about.
Have you filed you taxes? What do you think about this move by KRA? Tell us in the comment section below. If you would like to read some financial tips to help you plan ahead click here.