Taxpayers to get Relief of Penalties

Kenya Revenue Authority (KRA) has offered taxpayers a relief of penalties and interest on undisclosed taxes for the last five years.

This will be implemented through the Authority’s new Voluntary Tax Disclosure Programme (VTDP) which is aimed at improving tax compliance through disclosure of unpaid taxes and providing relief to taxpayers.

In 2020, KRA missed its tax collection target by Sh186.3 billion since March when the country reported its first case of coronavirus.

KRA’s Commissioner General, Githii Mburu, said the taxman collected Sh1.09 trillion against a target of Sh1.28 trillion in the eight months to November.

The VTDP which was introduced in the Finance Act, 2020, became operational on January 1, 2021 and will run for three years to December 31,2023.

The program will grant relief of penalties and interest on any tax liability disclosed in respect to the period of 5 years running from July 1, 2015 to June 30, 2020.

Taxpayers who comply to the VTDP will receive full or partial waiver of the penalties and interest, depending on the time of payment of disclosed taxes.