The Kenya Revenue Authority (KRA) has collected Ksh14.5 billion in principal taxes from beneficiaries of an amnesty program that waived penalties and interest accrued for periods up to 31st December 2022.
In a statement on Tuesday, February 27, KRA expressed its pleasure with the trajectory the amnesty was taking, stating that 227,071 taxpayers had benefited from the waiver of penalties and interest amounting to Ksh 209 billion as of February 20.
“The Kenya Revenue Authority (KRA) is pleased to report that so far as of 20th February 2024, 227,071 Taxpayers have benefited from waiver of penalties and interest amounting to Ksh. 209 billion under the ongoing Tax Amnesty Programme having paid a total of Ksh 14.5 billion in principal taxes,” the KRA statement read in part.
KRA also sent an appeal to taxpayers who are yet to file their returns for the amnesty period to file the returns in order to benefit from the Tax Amnesty Programme.
In its advice to taxpayers with ongoing tax disputes, the taxman urged them to consider out of court settlements through the Alternative Dispute Resolution (ADR) framework.
This, the authority notes, will enable them take advantage of the ongoing Tax Amnesty before its lapse set for June 30, 2024.
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“We also encourage Taxpayers with ongoing tax disputes to expedite resolution of their cases within the Amnesty period by considering out of court settlements through the Alternative Dispute Resolution (ADR) framework,” the taxman noted.
How Finance Act influenced KRA amnesty
The Finance Act, 2023 introduced the Tax Amnesty Programme to allow taxpayers to apply for waiver of penalties and interest accrued for periods up to 31st December 2022.
According to the Act, the Waiver would be applicable to persons with penalties and interest but has no principal taxes owing for periods up to 31st December 2022; and anyone with a principal tax accrued up to 31st December 2022 but pays the outstanding principal tax debt by 30th June 2024.
The Finance Act, 2023 also deleted the tax waiver and abandonment provisions hence piling pressure on taxpayers to take advantage of the tax amnesty or face action.
To avoid paying the penalties accrued for not paying the various taxes in time, successful applicants were required to pay the full amount of their respective principal taxes by 30th June 2024 as the condition to have their penalties foregone.
Also Read: KRA Reminds Kenyans on Changes in Tax Filing Process
The programme commenced on September 1, 2023, and was slated to run until 30th June 2024. At the time, 2.8 million taxpayers had penalties and interest obligations, making them eligible for the amnesty.
By October 17, 2023, Kenya Revenue Authority has managed to collect Ksh 3.4 billion through the tax amnesty programme.
In total, the taxman had targeted to collect Ksh51 billion from the debts accrued over the period as the government pushed to maximize revenue generation.
