Kenyan traders risk a Sh1 million fine or a jail term of three years if they fail to procure an upgraded electronic tax register (ETR) in the next one month, which will grant the taxman real-time access to their invoices.
The Kenya Revenue Authority (KRA) requires businesses to buy and deploy the new Internet-enabled ETRs that track invoicing at every turn of a transaction to assess the tax dues promptly by July 31. The KRA says the system will enhance compliance in the shift from the current manual process in which the taxman does not have visibility of taxable transactions.
