Rewards and amnesty as KRA marks annual taxpayers' month

KRA annual taxpayers month is to be launched on October 2.

The Kenya Revenue Authority (KRA) has lined up a series of activities to mark this year’s Annual Taxpayers Month, which will include a tax amnesty and rewarding compliant taxpayers.

In a statement on Friday, September 29, 2023, KRA said it will endeavour to give back to the taxpayer during the taxpayers’ month celebrated in October.

“KRA celebrates the taxpayers’ month annually to appreciate compliant taxpayers for remitting their taxes in the Financial Year 2022/2023. The event, celebrated throughout the month of October, will be marked by customer-centric activities countrywide including taxpayer appreciation visits, taxpayer education, and Annual Tax Summit, among others,” KRA’s statement said ahead of the event set to be launched on Monday, October 2, 2023.

The launch will be graced by President William Ruto, Treasury Cabinet Secretary Njuguna Ndung’u and KRA board chairperson Antony Mwaura among others.

National budget

The annual event is used to encourage citizens to be tax-compliant so the national budget can be funded. They are also made to understand the important contribution they make towards sustaining the economy.

KRA has urged taxpayers to take advantage of the tax amnesty which was recently introduced through the Finance Act 2023.

A tax amnesty refers to a limited-time offer by the government to specified taxpayers to pay a defined amount, in exchange for forgiveness of a tax liability, which includes interest and penalties, relating to a previous tax period.

This may also involve freeing the taxpayers from legal prosecution for defaulting.

Tax amnesty allows taxpayers to voluntarily disclose and pay tax owing in exchange for avoiding tax evasion penalties.

Tax amnesties benefit taxpayers by reducing their tax liabilities and giving them criminal immunity. But amnesties also provide benefits for the tax administration, particularly in terms of tax revenue they bring in and future compliance.

Penalties and interests

“The amnesty factors in all taxpayers with penalties and interests accrued as of December 31, 2022. Taxpayers from September 1, 2023, to June 2024 are allowed to settle the principal tax and all their penalties and interests will be waived,” KRA said.

During the event, compliant taxpayers will be recognised and awarded for upholding tax compliance in 2022.

Taxpayers will also be given the opportunity to give feedback on various tax issues that will help the authority improve its service delivery.

This year’s taxpayers’ month themed “Tunawiri”, loosely translated to mean “Let us prosper” is aimed at rallying all Kenyans towards fulfilling their tax obligations.