General News

KRA entices tax defaulters with waiver to boost complience – KBC | Kenya’s Watching

By

on

Download Video

PHOTO | File

If you failed to disclose any tax that was due over the last five years, the Kenya Revenue Authority (KRA) would like to waive it as long as you pay the principal amount this year.

KBC Radio_KICD Timetable

This is based on the new Voluntary Tax Disclosure Programme introduced by the Finance Act, 2020 which aims at enhancing tax compliance through disclosure of unpaid taxes.

The taxman has for long suspected that some taxpayers comprising both individuals and companies have been failing to declare and pay due taxes.

This prompted the National Treasury through the Finance Act, 2020 to introduce Voluntary Tax Disclosure Programme that offers affected taxpayers relief on penalties and interest on any tax liability disclosed in respect to the five years running to June 2020.

Get breaking news on your Mobile as-it-happens. SMS ‘NEWS’ to 20153

The government expects that the programme would help enhance tax compliance as well as serve as a relief to taxpayers affected by the challenging economic times brought about by COVID-19 pandemic.

The programme applies to all tax liabilities such as Income Tax, Corporate Tax, Pay As You Earn, Withholding Income Tax, Capital Gains Tax, Value Added Tax, Withholding VAT, Excise Duty, Monthly Rental Income Tax and Turnover Tax.

KRA in a statement says taxpayers who take up the offer will get a full or partial waiver of the penalties and interest, depending on the time they pay the disclosed taxes.

Those who make full payment of disclosed taxes this year will get 100% relief in penalties and interest while those who pay next year shall get 50% relief as those paying in 2023 shall get relief of 25%.

However, the tax relief will not benefit those under audit, compliance verification or investigation and those with ongoing litigation relating to the tax liability.

KBC-You-tube-728x90-New-2

Tell Us What You Think


(function(d, s, id) {
var js, fjs = d.getElementsByTagName(s)[0];
if (d.getElementById(id)) return;
js = d.createElement(s);
js.id = id;
js.src = “https://connect.facebook.net/en_US/sdk.js#xfbml=1&version=v2.5”;
fjs.parentNode.insertBefore(js, fjs);
}(document, ‘script’, ‘facebook-jssdk’));

Source by [author_name]

About admin

Leave a Reply

Your email address will not be published. Required fields are marked *