Agency to launch digital certificates for filing tax returns
Tax payers fill KRA forms. The taxman has been under pressure to collect more revenue every other year as the national budget keeps growing. PHOTO | FILE
What you need to know:
The ICT Authority of Kenya is piloting the use of the digital certificates among its employees with intention to replicate it in other government agencies after its launch in a month’s time.
Efforts to digitise records aimed at ensuring security when conducting e-commerce.
Government officers and individuals currently use passwords to do online transactions, which can be easily compromised.
Taxpayers will be required to have online identities called digital certificates to file returns and apply for personal identification numbers (PINs) from the Kenya Revenue Authority.
The ICT Authority of Kenya is currently piloting the use of the digital certificates among its employees and at the Kenya Revenue Authority KRA, with intention to replicate it in other government agencies after its launch in a month’s time.
Government officers and individuals currently use passwords to do online transactions, which can be easily compromised.
The introduction of the digital certificates will make it possible for those conducting e-commerce to authenticate the persons they are dealing with online and also make such contracts enforceable in court.
The move is part of the government’s efforts to seal loopholes through which revenue is lost by tracking the parties to a transaction and confirming payments.
Mr Victor Kyalo, CEO ICT Authority said as the government moves to automate and digitise its records, e-government will handle a lot of sensitive data which calls for security of these records.
“The digital certificates will enable the government to curb fraud and also make it easy for those transacting online with KRA, since they don’t need again to fill the forms manually as the case right now,” said Mr Kyalo.
“Going forward, end users especially the big taxpayers will be required to have the digital certificates,” he added.
The ICT Authority is now waiting for results of the pilot test KRA has been conducting internally before launching the service. This will pave way for individuals that process transactions with the taxman to start using the signatures in November.
“The online certificate will be a unique Internet ID that will facilitate access to on-line government services and to effect e-commerce (including e-banking services),” said Mr Evans Kahuthu, the Kenya ICT Board information security manager.
KRA is the first government agency to test the certificates, with Kenya Bankers Association also expressing interest in issuing the digital certificates.
The tax agency has been under increasing pressure to collect more revenue every other year as the national budget keeps growing.
Implementation of the new Constitution, which has introduced devolved systems and a bi-cameral Parliament, means the taxman will have to step up monitoring and be more efficient to put tax cheats on a tighter leash.
Apart from KRA, other immediate beneficiaries would be businesses that rely heavily on e-transactions and handle sensitive information like banks, medical service providers, legal entities and government ministries like immigration and Lands.
If successful, Kenya would become the second country in Africa to implement the tool after Cameroon.
Last year, the government awarded Samsung SDS of Korea a Sh393 million contract to put up the National Identification Number infrastructure that is required for the digital signatures.
PAYE Tax Calculator
Note: The results are not exact but very close to the actual.
