The Kenya Revenue Authority (KRA) has so far collected Sh3.4 Billion from the ongoing tax amnesty program as it seeks to boost its revenues as well as ease the tax burden experienced by taxpayers.
The Amnesty program, which the taxman introduced on September 1, 2023, allows taxpayers who had been penalized for failing to settle their tax dues by December 31, 2022, to apply for a waiver.
“The Finance Act, 2023 has provided for tax amnesty and this is a limited-time offer that allows for the waiver of fees, interest, and penalties on tax debt that was outstanding prior to December 2022. The taxpayers who clear their principal can then apply for a waiver on the principal, interest, and fines.”
Speaking to the media on Tuesday, October 17, 2023, the authority said that more than 17,000 taxpayers have applied for tax amnesty and are expected to remit Sh10.5 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.” KRA Chief Manager Domestic Taxes Department Ms Caroline Rotich said.
Through this program, taxpayers will only be required to pay the principal tax amount of outstanding tax debts. KRA is anticipated to collect over Sh51 billion from the debts accrued in the period.
The authority said that 2.8 Million taxpayers have penalties and interest and qualify for the tax amnesty program.
The 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.
”Taxpayers with tax dues accrued from January 2023 to date are not covered under the amnesty program. We will instead request them to give a payment plan on how they can clear these penalties.’’ KRA added.
The taxman encouraged taxpayers to apply for the amnesty program, adding that it will take normal debt collection should Taxpayers with principal taxes fail to apply for the program.
Taxpayers with pending objections and court cases have also been urged to consider out-of-court settlements with the Authority to allow them benefit from the tax amnesty program.
KRA has developed an Alternative Dispute Resolution (ADR) framework, which is an alternate means of resolving tax disputes outside the judicial process.