This is where a taxpayer applies to have tax obligations removed from him/her for different but legally acceptable reasons.
De-registration is where a taxpayer is removed from the obligations to declare a certain tax.
Non-filing of returns is not an automatic condition for de-registration. RRA must be satisfied that the taxpayer is not operating at all or is operating to the required level to continue being registered for a given type of tax.
De- registration is decided on a tax by tax basis. For example, a taxpayer could remain registered for PAYE while being de-registered for VAT.
De-registration becomes effective from the time RRA is satisfied that the taxpayer is not, at the time of application for de-registration, operating at a level that makes it liable to a particular tax. De-registration becomes effectives when the taxpayers is issued with a de-registration letter confirming that he/she is deactivated for a specific tax head as mentioned above.
Conditions for de-registration:
· A taxpayer must be up to date with filing of tax returns, tax accounts must be clean or at zero balance
· A business for which de-registration is being applied for must be non-operational
· Must fill and submit a de-registration form to any RRA branch.
Note the following:
· Non-filing of returns is not an automatic condition for de-registration
· Applying for de-registration does not mean your business has been de-registered
· A business is strictly considered as de-registered by a written confirmation by RRA
· Businesses applying for de-registration require to be truthful in the disclosures they make to RRA
· If you have to reopen the business you must inform RRA to reactivate your TIN