It’s a financial reprieve for thousands of Kenyan taxpayers as the Kenya Revenue Authority (KRA) reports an impressive KSh 3.4 billion collected so far from its ongoing tax amnesty program. During a recent media round table, Caroline Rotich, Chief Manager of the Domestic Taxes Department, unveiled that over 17,000 taxpayers have eagerly applied for this opportunity, with an anticipated collection target of KSh 10.5 billion.
A Growing Wave of Amnesty Applications
The tax amnesty program, which kicked off on September 1, 2023, has already drawn the interest of a significant number of taxpayers, and it’s expected to continue to surge as KRA intensifies awareness campaigns. Notably, KRA has pinpointed 2.8 million taxpayers who have incurred penalties and interest, thus qualifying for this generous program.
A Bounty of Benefits
This amnesty initiative brings forth substantial benefits. Qualified taxpayers stand to enjoy automatic waivers of penalties and interest associated with their arrears, all without the need for a formal application. KRA has also extended a pragmatic call to those with pending objections and court cases, suggesting out-of-court settlements to leverage this amnesty opportunity. The tax authority has even established an Alternative Dispute Resolution (ADR) framework, offering an alternative route to resolving tax disputes, separate from the traditional judicial process.
An Amnesty with a Mission
Enacted through the Finance Act of 2023, the KRA’s tax amnesty program permits taxpayers to apply for the waiver of penalties and interest accumulated up to December 31, 2022. Under this program, taxpayers are only required to settle the principal tax amount of their outstanding debts. Consequently, KRA anticipates a substantial collection of over KSh 51 billion from the debts accumulated within this defined period.
As Kenyan taxpayers seize this golden opportunity to mend their fiscal records, the KRA’s tax amnesty emerges as a commendable stride towards alleviating financial burdens and promoting greater compliance in the nation. With this initiative in full swing, it’s a win-win scenario for both taxpayers and the nation’s fiscal health.
