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Taxman settles 319 cases out of court, easing compliance

BUSINESS
By Moses Omusolo | Mar 15th 2022 | 2 min read
By Moses Omusolo | March 15th 2022
BUSINESS

KRA Commissioner for Legal Services Mr Paul Matuku. [Collins Kweyu, Standard]

Kenya Revenue Authority (KRA) has resolved 319 cases during the first half of 2022 through alternative dispute resolution (ADR).

This is 76 more cases compared to 243 cases resolved during a similar period last year, representing a 31 per cent growth in the number of cases settled out of court.

The taxman said in a statement yesterday that the surge in the number of applications to ADR signifies the growth in number of taxpayers who are increasingly embracing ADR in preference to litigation processes.

KRA said ADR received 559 applications between July and December 2021 compared to 493 applications received during a similar period last year.

ADR was initiated by KRA in 2015. By then, only 49 cases were resolved. According to the Tax Procedures Act, cases outside the court should be resolved within 90 days.

The average number of days taken to resolve tax disputes at ADR was 42 days in the second half of last year. This represented a higher level of efficiency compared to the time taken to resolve a tax dispute in an adversarial process, which often spans years.

KRA Commissioner for Legal Services Mr Paul Matuku said the ADR approach is aimed at moving away from conventional adversarial practices to a more inclusive and participatory process with a win-win outcome for parties.

"The ADR process is more flexible, cost-efficient, confidential and time-saving. It provides the parties with more control over the procedures for resolving the disputes and the results," Matuku noted.

"The process has also enabled the tax administration to foster good relationships with taxpayers and enhance tax compliance going forward," he added.

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