The Kenya Revenue Authority has issued a memo on its new three year voluntary tax disclosure program which commences on 1st January 2021 to 31st December 2023.
The programme will allow non-compliant taxpayers to voluntarily disclose the correct tax declarations, pay without facing any penalties and avoid potential criminal liability and prosecution.
The Voluntary Disclosure Program will require disclosure of the taxpayers’ six last tax years, by amending returns and paying the outstanding tax liability.
“The disclosure programme allows a person to disclose to the commissioner of tax liabilities that were previously undeclared and enjoy full or partial relief of penalties on the tax disclosed under the programme. It shall apply to tax liabilities accrued in the period commencing on or after 1st July 2015 but not later than 30th June 2020” The taxman said in a notice.
Covid-19 Impacts Tax Revenue Targets
The Kenya Revenue Authority (KRA) missed its revenue tax collection targets by Sh186.3 billion since March due to the tough business environment as a result of the adverse effects of Covid-19. The taxman collected Sh1.09 trillion against a target of Sh1.28 trillion in the eight months to November.
“The programme will run for three years. In order to encourage uptake of this programme, I further propose to grant relief for penalties and interest in respect of the tax disclosed after payment of the principal tax,” Said Kenya’s Treasury Cabinet Secretary Ukur Yatani while presenting the Finance Bill 2020/21.