The migration of the ledger balances aims to consolidate taxpayer records and provides the taxpayer with a continuous and complete view of the ledger

Taxpayers can validate their migrated ledger balances by reviewing their iTax Legacy Account available in the Taxpayers’ iTax profile in the General Ledger under the ‘Account Type’ Menu

Taxpayers should -

1. Write to their Tax Service Office (TSO) detailing periods of contention and attaching supporting documents.
2. The authorized officer will review the documentation; validate the ledger balances, and recommend corrections where necessary.
3. Final approval for corrections will be granted by relevant approving officers and the taxpayer will be notified of the adjustments made via their iTax registered email

Submit to your TSO the reconciliation requests, Payment Registration Number (PRN) slips, bank confirmation letters, and other relevant payment evidence. These documents will assist in validating the date and amount of payments for updating the ledger

If there are discrepancies, taxpayers can submit supporting documents on the disputed balances to their TSO. The authorized officers at the TSO will review the documents and communicate the decision to taxpayers via letter or email.

Corrections such as uncaptured payments, late captures, erroneous self-assessment entries and others will be processed through an automated workflow in iTax. All corrections require necessary approvals before updating in the system.

Any validated credit balances that qualify as tax overpayments will be available for utilization in accordance with the provisions of Section 47(1)(a) of the Tax Procedures Act.

Taxpayers have up to 31^st December 2024 to review and provide feedback on any discrepancies. After this period, any debit balances remaining shall be transferred to the iTax General Ledger and demand notices issued

Adjustments include -

1. Updating payments not captured or captured late;
2. Return correction;
3. Rectifying self-assessment capturing errors;
4. Handling credits migrated; and
5. Reconciling un-actioned assessments or refunds.

Final VAT credit balances in the Legacy System have not been migrated. This is because taxpayers were given a chance to claim these credits in their first iTax return or request refunds through the specified processes.

Refunds processed but not updated in the Legacy ledger were adjusted through debit entries. Any discrepancies in the adjustments will be reversed through a workflow that shall be provided to the taxpayers.

The documents to aid in reconciliation will depend on the reconciliation sought and may vary from taxpayer to taxpayer. The required documents will therefore be agreed upon with the TSO once the taxpayer reports the variances.

Returns filed in both systems during the transition period have been reconciled to determine the correct last return in the Legacy System. Transactions filed in Legacy System after a taxpayer had filed the first iTax return were disregarded during migration.

Excess waivers issued without corresponding interest and penalties (I&P) were adjusted through debit contra entries to correct the balance. Waivers higher than I&P amounts were similarly adjusted to prevent discrepancies.

Missing payments made via ITMS and CCRS towards Legacy System assessments were factored in the respective periods during validation and migration of the balances.

For missing payments made through direct remittance to Central Bank of Kenya (direct credits), taxpayers should submit a reconciliation request together with supporting documents for the missing payments (RTGS payment slips/Bank advice slips) for validation and capturing

Unused migrated credit vouchers were cancelled for fresh migration action (payment or utilization). For utilized credits, adjustments were made to determine the correct balance to be migrated.

Taxpayers can request adjustments if they believe losses were not carried forward within a Legacy period. Taxpayers should provide supporting documents and explanations for review and validation by authorized officers

Yes, taxpayers can seek a review of the disallowed credits claimed in iTax returns compared to Legacy System credits. Correct credits as computed from the Legacy System will be migrated after validation and review.

Excess payments were utilized towards specific VAT liabilities (VAT 57 and VAT 77). Any remaining excess amount was adjusted to reflect the final balance in the Legacy System.

For any clarification on the migrated balances, taxpayers are advised to reach out to their nearest KRA Office or contact us through email address: dtdlegacysupport@kra.go.ke