Part of the message read: “Dear XXXX, our records indicate that while you filed a Nil Income Tax Return for 2024, you earned income in 2025 as evidenced by your eTIMS transmissions.”
KRA further informed the affected taxpayers that their 2025 income tax returns had already been pre-populated in the system.
They were advised to log into the iTax portal, review the information provided, file their returns, and settle any outstanding tax obligations.
“Consequently, your pre-populated 2025 Income Tax Return is ready for filing. Please log in to iTax to file your return and pay any tax due. For assistance, call 0711 099 999,” the message added.
The move signals a stronger effort by the authority to match declared income with digital transaction records.
KRA has in recent years invested heavily in technology to improve compliance and reduce tax evasion.
One of the tools supporting this effort is the Electronic Tax Invoice Management System (eTIMS), which captures transaction data from businesses in real time.
By cross-checking nil returns against eTIMS data, KRA is now able to detect inconsistencies more easily.
A nil return is meant for taxpayers who did not earn any taxable income during a particular year.
However, if a taxpayer’s PIN shows recorded sales, invoices, or other income-related transactions, it raises questions about the accuracy of the earlier declaration.
Tax experts say that filing incorrect returns, whether intentionally or by mistake, can attract penalties.
They advise taxpayers to review their financial records carefully before submitting returns and to correct any errors as soon as possible.
KRA has encouraged those who received the notification not to panic but to log into their accounts and verify the details.
In some cases, the income detected may relate to business transactions that were not properly accounted for or income earned after the previous filing period.