The Kenya Revenue Authority (KRA) has collected over KShs 21 billion using its Alternative Disputes Resolution (ADR) mechanism.
This is after the tax authority resolved 393 ADR cases this financial year between July last year and this March.
According to Paul Matuku, KRA Commissioner, Legal Services and Board Coordination, this mechanism has seen growth in cases resolved and revenue collected.
ADR, a voluntary, participatory and facilitated discussion over a tax dispute between a taxpayer and the Commissioner, is a facilitated mediation and not arbitration.
Instead, the parties are facilitated to find a solution to the dispute.
KRA records growth in cases sorted through ADR
Available figures indicate a 109% growth in ADR cases and a 389% surge in revenues collected between July 2020 and March this year.
According to the Tax Procedures Act, disputes under the ADR regime must be resolved within three months.
ADR disputes can take a shorter time than the one stipulated in the law.
The process does not require one to pay filing fees and be represented by a lawyer. The whole process takes place virtually.
The average time needed to resolve ADR cases has been cut down from 89 days in 2019/2020 financial year to 42 days currently.’
A taxpayer can present documents for verification under ADR- a situation that cannot occur at the tax tribunal or court hearings.
Available KRA data shows that the number of ADR applications has grown from 425 in 2019/20 to 661 as of the 2020/21 financial year.