No More Waiver Hassles for Erroneous Tax Penalties
Have you ever received a tax penalty or interest charge you didn’t deserve? The reversal of erroneous penalties and interests on iTax is now streamlined. You no longer have to go through the complex waiver process. Instead, the Kenya Revenue Authority (KRA) has introduced a new module that makes the process simpler and more transparent.
Many taxpayers face penalties due to incorrect tax obligations, such as students wrongly assigned VAT or PAYE. Others are penalized for late payments even when they paid on time through systems outside iTax—like CBK accounts or RTGS transfers. Dormant taxpayers can also incur penalties unjustly.
How to Apply for a Penalty and Interest Reversal
To initiate the reversal of erroneous penalties and interests on iTax, a taxpayer must submit a formal application to their Tax Service Office (TSO). The application must explain why the penalty or interest was incorrect and must include verifiable supporting documents.
The Debt Office will upload these documents into the system. Reversals will not proceed without proper documentation.
Required Documents for a Successful Reversal
Documentation varies depending on the error:
- Students assigned wrong obligations:
- Sworn affidavit
- Certified student ID and national ID
- Academic transcripts or certificates
- Payments made outside iTax (e.g., RTGS or CBK):
- SWIFT advice or RTGS proof
- Bank receipts confirming timely payment
- Employees wrongly assigned business obligations:
- P9 form
- Employer’s letter confirming employment status
- Proof of income solely from employment
Only cases backed by relevant evidence will qualify for reversal. If you lack proper documentation, your request may be declined.
For more details, taxpayers are encouraged to contact the Debt Office at their nearest TSO. You can also click here to read the official KRA guide.
