ADVOKS GLOBAL · KENYA
Tax Procedures Act
59A. Data management and reporting system.
Edition: 2026-09-01 · In force
59A. Data management and reporting system.
(1)The Commissioner may establish a data management and reporting system for the submission of electronic documents including detailed transactional data relating to those documents.(1A)The Commissioner may, by notice in writing, require a person to integrate the electronic tax system authorised under section 75 to the system referred to in subsection (1) for the purposes of submission of electronic documents including detailed transactional data in the prescribed form.(1B)The Commissioner shall not require a person to integrate or share data relating to—(b)private or personal data held on behalf of customers or collected in the course of business.(1C)A notice under subsection (1A) shall be for a reasonable period but not exceeding one year and depending on the nature of the business of that person.(1D)The provisions of subsection (1A) shall only apply to a business whose turnover exceeds five million shillings.(2)The Commissioner shall notify in writing the persons required to submit electronic documents through the system established under subsection (1).(3)The electronic documents referred to in subsection (2) include electronic invoice returns —(a)of payments made by a person in the ordinary course of business where goods were exchanged for consideration by a person not employed in the business;(b)for payments made by a person in the ordinary course of business where services were rendered, or in anticipation of services to be rendered, by a person not employed in the business;(c)for payments for services rendered, or in anticipation of services to be rendered, in connection with the formation, acquisition, development, or disposal of a business or a part of it, by persons not employed in the business;(d)for periodical or lump sum payments in respect of a royalty; or(e)for such other commercial or financial transaction as may be designated by the Commissioner.(4)For the purposes of this section —(a)“transactional data” includes —(i)the names and addresses of each person to whom a payment was made;(ii)where the payment is for services, the amount of the payment specifying whether the payment is a commission of any kind or is for expenses incurred in connection with rendering the services;(iii)where the payment is in any form of valuable consideration other than money, the particulars of the consideration; and(iv)such other particulars as the Commissioner may specify;(b)references to payments for services include references to payments in the nature of commission of any kind and references to payments in respect of expenses incurred in connection with the rendering of services; and(c)references to the making of payments include references to the giving of any form of valuable consideration, and the requirement imposed by paragraph (a)(iii) to state the amount of a payment shall, in relation to any consideration given otherwise than in the form of money, be construed as a requirement to give particulars of the consideration.(5)A person who fails to comply with the notice given under subsection (1A) commits an offence and shall be liable, on conviction, to a penalty not exceeding one hundred thousand shillings for every month or part thereof that the failure continues.(6)A person who fails to comply with the notice given under subsection (2) commits an offence and shall be liable, on conviction, to a penalty not exceeding one hundred thousand shillings for every month or part thereof that the failure continues.