Migration of Legacy Ledger Balances to iTax

On July 31, 2024, the Kenya Revenue Authority (KRA) announced a key update. Legacy balances—taxpayer balances from before the iTax system—have now been successfully migrated into the iTax ledger.

How to Access Migrated Balances

Taxpayers can find these migrated balances in their iTax profiles under the General Ledger section, specifically within the “Taxpayer Account Menu.” You can also download detailed statements of these balances from the “Debt and Enforcement” menu tab. This process makes it easier for taxpayers to stay informed about their tax obligations.

Adjustments to Balances

KRA has noted that debit or credit adjustments might change based on additional information. Taxpayers with credit balances, seen as overpayments, can use these amounts according to Section 47 (1)(a) of the Tax Procedures Act. This act allows for the use of overpaid taxes against future liabilities.

No New Tax Assessments

Importantly, these migrated balances are not new tax assessments. This means they cannot be appealed if the taxpayer disagrees. However, both the taxpayer and KRA can review and update these balances with new information. This ensures accuracy in tax records.

Key Deadlines and Actions

Taxpayers have until December 31, 2024, to raise any concerns about the migrated balances. If issues remain unresolved, debit balances will be confirmed, and demand notices issued. During this review, no taxpayer will be denied a Tax Compliance Certificate (TCC) because of these migrated balances.

Necessary Documentation

To validate these balances, taxpayers may need to provide:

• Audited accounts for Income Tax balances.
• Manual tax declarations and payment receipts.

These documents help ensure the accuracy of migrated balances.

Get Help with Tax Inquiries

For questions about legacy balances or other tax concerns, our team is here to help. We can assist with the transition to the iTax system.

Conclusion

The migration of legacy balances to iTax is a significant step in modernizing Kenya’s tax system. Review your migrated balances now, resolve any issues, and consult with professionals if necessary. With the December 31, 2024 deadline approaching, it’s important to act quickly.

For more information, visit our Tax Advisory Services page or contact us to speak with an expert.

Written by Dancan Nyakambi