The administrative decision by the Kenya Revenue Authority (KRA) to suspend 'Nil' filing of returns amounts to a brazen cocktail of illegality, irrationality and impropriety all rolled in one odious basket to taxpayers.
Our tax system is based on the principle of self-assessment under section 28 of Tax Procedures Act (TPA). This right is unfettered under the law, only subject to accounting periods mapped at the point of registration.
Invariably, the commissioner may assess any taxpayer based on information available without being bound by tax return so submitted. This implies any decision must flow from a pre-existent return.
Nowhere does the TPA give discretion to suspend due date. In any case, the commissioner only has restricted powers, in writing, to request a taxpayer to file before due date, not the other way round.
It is irrational to take an administrative decision that undermines a written law without public participation. That amounts to a fiat and flies in the face of principles of legality and common sense.
The i-Tax system is the repository of all tax data. It then beats logic why the taxman suddenly makes presumption that the documents held by the taxpayer, which form basis to filing, must somehow be screened prior to filing. Properly said, the commissioner has every right to undertake additional assessment following an audit or investigation where notable discrepancies are reported or detected.
Procedurally, the KRA has made it impossible for any taxpayer to apply for tax compliance certificate (TCC) while any return is pending.
It is advisable therefore that the KRA demonstrates adequate and robust measures to ensure traders seeking the TCC for whatever reasons are not precluded from enjoying this right.
It should be borne in mind that there exist entities under non-December accounting period. To put their tax affairs in abeyance evokes insensitivity. Think of traders who need TCC to unlock payments, get jobs, secure tender bids or for statutory compliance. How do they remedy for delay ‘’until March’’?
The KRA is not affording taxpayers any convenience. In late 2025, the taxman put out a notice disallowing expenses not supported on TIMS. Early this week, it was geo-referencing. Today, all stand suspended from filing. Where is the canon of certainty?
It should be appreciated that tax laws are generally technical in content and amenable to fluctuating context based on Finance Bills. No tax guru could possibly keep abreast with this Muguka van speed. Moreover, it is irregular for KRA to presuppose that nil-filing or credit filing amounts to tax larceny.
Complexities in taxation leading to credit filing may range from loss carried forward from previous year; specially-exempt category; tax refund; and investment or industrial deductions claims.
It is preposterous to imply the taxpayer either holds wrong, falsified or incorrect data and thus, must suffer inconvenience until the all-powerful commissioner is otherwise pleased.
Ogun Owino is a lawyer specialised in tax advisory
