Taxpayers with tax penalties accrued over the past five years will now be eligible for full or partial relief, the Kenya Revenue Authority (KRA) has announced.
In a statement, KRA announced that the penalties will include interests on the undisclosed taxes, and will be implemented under Voluntary Tax Disclosure Programme (VTDP) that was introduced through the Finance Act, 2020.
“VTDP applies to all tax liabilities accrued/derived in the specified period including individual Income Tax, Corporate Tax, PAYE, Withholding Income Tax, Capital Gains Tax, Value Added Tax, Withholding VAT, Excise Duty, Monthly Rental Income Tax and Turnover Tax,” said KRA.
Read: KRA Updates iTax System To Enable Digital Tax Collection Set To Commence in January 2021
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.
The taxman says that a taxpayer will not be eligible to apply for relief under the programme if he/she is a party to an ongoing litigation in respect to the tax liability or any matter relating to the tax liability.
Those who take advantage of the programme will not be prosecuted for disclosed tax liabilities.
Those who disclose and pay the taxes will also be issued with a VTDP certificate to prove they took advantage of the programme.
Email your news TIPS to Editor@kahawatungu.com or WhatsApp +254707482874. You can also find us on Telegram through www.t.me/kahawatungu