Kenya Revenue Authority (KRA) has so far collected Sh3.4 billion from the ongoing tax amnesty programme.

At least 17,000 taxpayers have so far taken advantage of the amnesty and are expected to remit Sh10.5 billion, according to Domestic Taxes Chief Manager Caroline Rotich.

“More than 17,000 taxpayers have applied for the tax amnesty, which commenced on September 1 and we expect the number to immensely grow as we continue to create awareness amongst taxpayers,” she said.

KRA has identified 2.8 million taxpayers who have penalties and interest and qualify for the tax amnesty programme, in which the taxman waives billions.

The tax amnesty runs until June 2024.

Out-of-court settlement

Qualified taxpayers are 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, which targets to collect Sh2.78 trillion in revenues this financial year, has urged taxpayers who have pending objections and court cases to consider out-of-court settlements to enable them to benefit from the amnesty programme.

The taxman collected Sh2.1 trillion in the 2022-23 financial year.

KRA has developed an alternative dispute resolution (ADR) framework as a means of resolving tax disputes outside the judicial process.

It encourages concerned taxpayers to leverage this programme for faster mutual, objective and efficient resolution of tax disputes.

Through the Finance Act 2023, KRA introduced an amnesty programme that allows taxpayers to apply for a waiver of penalties and interest accrued until December 31, 2022.

Taxpayers will only be required to pay the principal tax amount of outstanding tax debts, with KRA projecting to collect over Sh51 billion from the debts accrued in the period. 

According to the amnesty notice, when a person has paid all the principal taxes that were due by December 31, 2022, they will be entitled to an automatic waiver. 

If the person has not paid all the principal taxes up to December 31, 2022, they will be required to apply to the Commissioner for amnesty on interest accrued and penalties.

They should also propose a payment plan for any outstanding principal taxes, which should be paid not later than June 30, 2024.  

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