KRA Announces New Changes in Handling Tax Cases

  • KRA offices in Nairobi.
    A file image of the reception area at KRA offices in Nairobi.
  • The Kenya Revenue Authority (KRA) has announced changes to how tax appeals will be handled moving forward.

    In a notice on Tuesday, March 2, the taxman notified that all appeals on tax matters to the Tax Appeals Tribunal, High Court, and the Court of appeal, the service of the Notice of Appeal to the Commissioner should be done through the iTax platform.

    "These requirements are aimed at facilitating the implementation of the decision as made by these appellate bodies," the agency disclosed.

    The new system would take place from March 1, 2021.

    Process to file nil returns on the KRA iTax portal
    The process to file nil returns on the KRA iTax portal

    iTax in Kenya is a web-based system introduced by the Kenya Revenue Authority (KRA) to simplify revenue collection in Kenya.

    The fully-integrated and automated iTax system simplifies the tax processes, as it shortens the time taken to file returns, enhances transparency, and increases revenue collection.

    The announcement comes weeks after the Treasury Ministry struck a deal with the Tax Appeals Tribunal to conclude stalled cases within 50 days to enable the KRA to collect over Ksh133 Billion from wealthy people and firms who have cases pending at the tribunal.

    In the new agreement, the hearing and determination of pending cases would be fast-tracked unlocking billions of shillings held in the tribunal process.

    The stalled cases bar KRA from enforcing stiff measures to ensure revenue collection from the individuals and firms.

    KRA Commissioner-General Githii Mburu had earlier unveiled a plan to lift the veil on the faces of obscure billionaires in the country after being granted access to their alleged secret investments.

    The agency's detectives discovered that 1,309 firms and wealthy individuals had concealed billions in revenue with the aim of evading paying tax.

    "At the Tax Appeals Tribunal, we have over Ksh200 billion. We want those disputes resolved and those taxpayers to come forward through alternative dispute resolution mechanisms," Mburu stated.

    KRA Boss James Githii Mburu gives an address during a past event
    KRA Boss James Githii Mburu speaks at a conference in 2019