The Kenya Revenue Authority (KRA) has recovered Ksh300 Million from businesses and individuals suspected of tax evasion.
The millions were paid under the Voluntary Tax Disclosure Programme (VTDP) - a platform for a taxpayer to disclose tax liabilities that were previously undisclosed to the authority for the purpose of being granted relief of penalties and interest arising from the tax disclosed - which commenced on January 1, 2021.
KRA Commissioner for Domestic Taxes Rispah Simiyu stated that under the amnesty programme, 55 business and individuals had declared their tax liabilities and would be cushioned from penalties and legal suits.
She added that the amount recovered so far was half of what they had offered to pay with the agency expecting more to apply for amnesty.
"As part of our administrative actions, we have already dispatched notices to thousands of taxpayers asking them to take advantage of the VTDP by declaring and remitting their previously undeclared taxes," Simiyu stated.
With the relief, one can disclose their tax liabilities without facing any legal consequences such as prosecution.
The scheme is part of KRA's new measures to raise Ksh 1.57 trillion for the financial year 2020/21,
According to KRA, taxpayers who will apply within the first year will enjoy a 100% waiver of penalties and interest.
Applications made in the second and third years of the program will result in a 50% and 25% waiver of penalties and interest respectively.
The disclosures eligible under this programme are tax periods of up to 5 years prior to July 1, 2020 - from July 1, 2015, to June 30, 2020.
The amnesty will not apply to a person under a tax audit, investigation or is a party to ongoing litigation in respect of the tax liability or any matter relating to the tax liability.
In addition, the program shall not apply in case a person has been notified of a pending audit or investigation by the commissioner.
