KRA offers defaulters new deal

By Peter Theuri

The Kenya Revenue Authority (KRA) has offered taxpayers who have defaulted on payments in the last five years relief options.

Taxpayers will get full or partial relief on penalties and interest on undisclosed taxes dating back to July 1, 2015.

This will be effected through the newly introduced Voluntary Tax Disclosure Programme (VTDP), aimed at “providing relief to taxpayers during the challenging economic times brought about by Covid-19 pandemic”.

“The Voluntary Tax Disclosure Programme introduced in the Finance Act, 2020 commenced on January 1, 2021, and shall run for three years to December 31, 2023,” KRA said in a statement signed by Commissioner for Domestic Taxes Department Rispah Simiyu.

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The three-year window aims at aiding defaulters to clear their outstanding tax dues and enhancing compliance through disclosure of unpaid taxes.

“The programme seeks to grant relief on penalties and interest on any tax liability disclosed in respect to the period running from July 1, 2015 to June 30, 2020,” added KRA.

It said the waiver would depend on when payment of disclosed taxes is made. Those who make full payment this year will get 100 per cent relief in penalties and interest, while those who pay next year and in 2023 will get relief of 50 per cent and 25 per cent, respectively.

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However, taxpayers who are under audit, compliance verification or investigation, alongside those who have been served with a notice of intention to investigate or carry out an audit or compliance check for the undisclosed tax will not be eligible to apply.

A taxpayer who is a party to litigation concerning the tax liability or any matter relating to the tax liability will also not apply. Those granted relief under the programme would not be prosecuted and cannot appeal.