Kenya Revenue Authority (KRA) is banking on an offer embracing full or partial relief on penalties and interest to woo taxpayers into voluntarily disclosing tax liability accrued in the five-year period between June 2015 and June 2020.
In a statement, KRA said the amount of relief one gets will depend on how soon they intend to pay the disclosed tax arrears.
“Persons who make full payment of disclosed taxes in 2021 will get 100 per cent relief in penalties and interest while those who pay in 2022 and 2023 shall get relief at a rate of 50 per cent and 25 per cent respectively,” said KRA.
The tax reliefs will be effected through the newly introduced Voluntary Tax Disclosure Programme (VTDP) which is aimed at providing relief to taxpayers during the challenging economic times brought about by the Coronavirus pandemic.
The programme is also aimed at enhancing tax compliance through disclosure of unpaid taxes.
Tax disclosure programme applies to all tax liabilities accrued in the five-year period including individual income tax, corporate tax, pay as you earn, withholding income tax, capital gains tax, value added tax, withholding taxes, excise duty, monthly rental income tax and turnover tax.
“In addition to the waiver of penalties and interest, a person granted relief under the programme shall not be prosecuted for the disclosed tax liabilities while those granted relief in accordance with the provision of the VTDP shall not appeal or seek any other remedy with respect to the taxes, penalties and interest remitted by KRA,” the statement further reads.