The Kenya Revenue Authority(KRA) has announced collecting Kes 3.4 billion from the ongoing tax amnesty programme.
According to the Domestic Taxes Department Chief Manager Caroline Rotich, more than 17,000 taxpayers have applied for tax amnesties and are expected to remit Kes 10.5 billion.
“More than 17,000 taxpayers have applied for the tax amnesty which commenced on 1st September, 2023, and we expect the number to immensely grow as we continue to create awareness amongst taxpayers,” she said.
Further, the taxman has revealed that it has identified 2.8 million taxpayers who have penalties and interest and qualify for the tax amnesty programme.
The programme will allow KRA to waive billions from taxpayers.
Did you read this?
Qualified taxpayers will be entitled to an automatic waiver of the penalties and interest related to that period and will not be required to make an amnesty application.
KRA has called upon taxpayers who have pending objections and court cases to consider out-of-court settlements with authority to allow them to benefit from the tax amnesty programme.
KRA runs an Alternative Dispute Resolution (ADR) framework, an alternate means of resolving tax disputes outside the judicial process.
The recently implemented Finance Act of 2023 introduced tax amnesty, allowing taxpayers to apply for waivers of penalties and interest accrued until December 31, 2022, effective September 1, 2023.
Eligibility
All taxpayers who do not have principal tax due for periods up to 31st December 2022 but have penalties and interest due shall qualify for the tax amnesty.
The amnesty under this category shall be automatic, and taxpayers will not be required to apply.
All taxpayers who have an outstanding principal tax for periods up to 31st December 2022 but fully settle the outstanding principal tax debts by 30th June 2024 shall qualify as explained below;
- The taxpayer with outstanding principal tax debts applies for amnesty.
- A payment plan proposal for the outstanding principal taxes accompany the application for amnesty.
- All taxpayers with self-assessments or amended assessments relating to any period up to 31st December 2022 but raised after 31st December 2022 shall qualify as long as the outstanding principal taxes raised in the assessments are paid before 30th June 2024.
- All taxpayers with tax liabilities under any dispute process will qualify for the amnesty if they meet the amnesty conditions.
KRA anticipates collecting Kes 51 billion from the debts accrued during the period.