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When your employer does not remit Pay As You Earn
Shak
#1 Posted : Monday, November 25, 2019 8:42:26 PM
Rank: Elder

Joined: 2/22/2009
Posts: 2,449
Location: Africa
So I found myself in this situation:

I've been filing my returns faithfully every financial year without fail. One day as I was browsing the itax platform, I discovered that I owe KRA about half a million in unpaid taxes and this basically matches the PAYE deducted by my previous employer for the years I worked there.

Question is, what should I do? Will I have to pay this money or can I compel my previous employer to remit what he deducted? Let me add that the rogue employer is a county government.
Impunity
#2 Posted : Tuesday, November 26, 2019 5:20:02 AM
Rank: Elder

Joined: 3/2/2009
Posts: 26,331
Location: Masada
Get a lawyer.
Portfolio: Sold
You know you've made it when you get a parking space for your yatcht.

Gathige
#3 Posted : Tuesday, November 26, 2019 12:44:01 PM
Rank: Elder

Joined: 3/29/2011
Posts: 2,242
Shak wrote:
So I found myself in this situation:

I've been filing my returns faithfully every financial year without fail. One day as I was browsing the itax platform, I discovered that I owe KRA about half a million in unpaid taxes and this basically matches the PAYE deducted by my previous employer for the years I worked there.

Question is, what should I do? Will I have to pay this money or can I compel my previous employer to remit what he deducted? Let me add that the rogue employer is a county government.



@Shak, It's the employer's responsibility to deduct and remit PAYE. You are therefore not exposed since deductions were made on your pay, but the rogue employer did not remit.
"Things that matter most must never be at the mercy of things that matter least." Goethe
thuks
#4 Posted : Tuesday, November 26, 2019 1:57:17 PM
Rank: Veteran

Joined: 10/8/2008
Posts: 1,575
Gathige wrote:
Shak wrote:
So I found myself in this situation:

I've been filing my returns faithfully every financial year without fail. One day as I was browsing the itax platform, I discovered that I owe KRA about half a million in unpaid taxes and this basically matches the PAYE deducted by my previous employer for the years I worked there.

Question is, what should I do? Will I have to pay this money or can I compel my previous employer to remit what he deducted? Let me add that the rogue employer is a county government.



@Shak, It's the employer's responsibility to deduct and remit PAYE. You are therefore not exposed since deductions were made on your pay, but the rogue employer did not remit.

Similar situation, but KRA won't issue me a compliance certificate hence I am 'exposed'
I care!
newfarer
#5 Posted : Tuesday, November 26, 2019 2:19:58 PM
Rank: Elder

Joined: 3/19/2010
Posts: 3,505
Location: Uganda
Gathige wrote:
Shak wrote:
So I found myself in this situation:

I've been filing my returns faithfully every financial year without fail. One day as I was browsing the itax platform, I discovered that I owe KRA about half a million in unpaid taxes and this basically matches the PAYE deducted by my previous employer for the years I worked there.

Question is, what should I do? Will I have to pay this money or can I compel my previous employer to remit what he deducted? Let me add that the rogue employer is a county government.



@Shak, It's the employer's responsibility to deduct and remit PAYE. You are therefore not exposed since deductions were made on your pay, but the rogue employer did not remit.


Most employers in default are in default because they simply don't have money to pay not because they are rogue.The business environment is quite hostile on the ground
punda amecheka
Angelica _ann
#6 Posted : Tuesday, November 26, 2019 2:37:34 PM
Rank: Elder

Joined: 12/7/2012
Posts: 11,935
newfarer wrote:
Gathige wrote:
Shak wrote:
So I found myself in this situation:

I've been filing my returns faithfully every financial year without fail. One day as I was browsing the itax platform, I discovered that I owe KRA about half a million in unpaid taxes and this basically matches the PAYE deducted by my previous employer for the years I worked there.

Question is, what should I do? Will I have to pay this money or can I compel my previous employer to remit what he deducted? Let me add that the rogue employer is a county government.



@Shak, It's the employer's responsibility to deduct and remit PAYE. You are therefore not exposed since deductions were made on your pay, but the rogue employer did not remit.


Most employers in default are in default because they simply don't have money to pay not because they are rogue.The business environment is quite hostile on the ground


Counties also default in remitting PAYE, that to me is impunity.
In the business world, everyone is paid in two coins - cash and experience. Take the experience first; the cash will come later - H Geneen
Shak
#7 Posted : Tuesday, November 26, 2019 5:20:27 PM
Rank: Elder

Joined: 2/22/2009
Posts: 2,449
Location: Africa
Angelica _ann wrote:
newfarer wrote:
Gathige wrote:
Shak wrote:
So I found myself in this situation:

I've been filing my returns faithfully every financial year without fail. One day as I was browsing the itax platform, I discovered that I owe KRA about half a million in unpaid taxes and this basically matches the PAYE deducted by my previous employer for the years I worked there.

Question is, what should I do? Will I have to pay this money or can I compel my previous employer to remit what he deducted? Let me add that the rogue employer is a county government.



@Shak, It's the employer's responsibility to deduct and remit PAYE. You are therefore not exposed since deductions were made on your pay, but the rogue employer did not remit.


Most employers in default are in default because they simply don't have money to pay not because they are rogue.The business environment is quite hostile on the ground


Counties also default in remitting PAYE, that to me is impunity.

Exactly @Angelica Ann. They receive money from national government for salaries so it's not that there is no money. Those deductions must have gone into someone's pocket
Shak
#8 Posted : Tuesday, November 26, 2019 5:22:34 PM
Rank: Elder

Joined: 2/22/2009
Posts: 2,449
Location: Africa
Gathige wrote:
Shak wrote:
So I found myself in this situation:

I've been filing my returns faithfully every financial year without fail. One day as I was browsing the itax platform, I discovered that I owe KRA about half a million in unpaid taxes and this basically matches the PAYE deducted by my previous employer for the years I worked there.

Question is, what should I do? Will I have to pay this money or can I compel my previous employer to remit what he deducted? Let me add that the rogue employer is a county government.



@Shak, It's the employer's responsibility to deduct and remit PAYE. You are therefore not exposed since deductions were made on your pay, but the rogue employer did not remit.


Unfortunately I can't get a tcc without clearing the 'debt'. I'll have to pay KRA a visit to find out what my options are.
2012
#9 Posted : Tuesday, November 26, 2019 6:56:34 PM
Rank: Elder

Joined: 12/9/2009
Posts: 6,592
Location: Nairobi
thuks wrote:
Gathige wrote:
Shak wrote:
So I found myself in this situation:

I've been filing my returns faithfully every financial year without fail. One day as I was browsing the itax platform, I discovered that I owe KRA about half a million in unpaid taxes and this basically matches the PAYE deducted by my previous employer for the years I worked there.

Question is, what should I do? Will I have to pay this money or can I compel my previous employer to remit what he deducted? Let me add that the rogue employer is a county government.



@Shak, It's the employer's responsibility to deduct and remit PAYE. You are therefore not exposed since deductions were made on your pay, but the rogue employer did not remit.

Similar situation, but KRA won't issue me a compliance certificate hence I am 'exposed'


Since when did people start getting compliance certs for PAYE? Hiyo ni porojo.

The worst is when you're employed by an international company through a subcontracted local HR agency that doesn't remit. I know of one such company and the arreas to KRA are in hundreds of millions but the question is, how did it get there? Clearly it's with the blessings of senior personnel in KRA. Kenya is just too corrupt.

BBI will solve it
:)
Thitifini
#10 Posted : Tuesday, November 26, 2019 8:24:48 PM
Rank: Member

Joined: 1/15/2015
Posts: 681
Location: Kenya
Shak wrote:
So I found myself in this situation:

I've been filing my returns faithfully every financial year without fail. One day as I was browsing the itax platform, I discovered that I owe KRA about half a million in unpaid taxes and this basically matches the PAYE deducted by my previous employer for the years I worked there.

Question is, what should I do? Will I have to pay this money or can I compel my previous employer to remit what he deducted? Let me add that the rogue employer is a county government.


There is a reconciliation process done by KRA to clear this notice of unpaid PAYE. The employer most likely already paid it to KRA.

This situation affects many.

You need to get your former employer's KRA tax manager (from HR) and they will both reconcile your statements.

This however might take a week or 2-3months depending how patriotic you aresmile .

60% Learning, 30% synthesizing, 10% Debating
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