The Kenya Revenue Authority (KRA) has dismissed claims made by a section of Kenyans on social media that it is blocking taxpayers with arrears from exiting the Jomo Kenyatta International Airport (JKIA). KRA CG Humphrey Wattanga (c) and other government officials at JKIA. Photo: Alfred Mutua. Source: Twitter While responding to a netizen on X (formerly Twitter), the taxman clarified that it was running a tax amnesty programme. In this case, taxpayers with penalties and interest due for the period ending December 2022 will enjoy a 10-month tax amnesty running to June 2024.”We are offering amnesty on tax penalties and interest for the period up to December 31, 2022. This is as long as you file any missed returns and settle any outstanding principal tax before the deadline on June 30, 2024,” KRA stated. KRA customs and border control (C&BC) department registered a revenue collection growth of 10.12% at the JKIA in the 2022/2023 financial year. It collected KShs 49.063 billion against a target of KSh 46.991 billion, representing a 104% performance rate. Who shall not qualify for KRA tax amnesty? KRA stated that those with interest and penalties arising from non-filing of returns were entitled to automatic waiver of the same upon the filing of returns. However, the waiver does not cover penalties and interest related to customs duty since it is limited to the provisions of the Tax Procedures Act 2015. “The amnesty only covers tax laws covered under the Tax Procedure Act, 2015. Custom duties administered under the East Africa Act do not qualify for amnesty,” KRA stated. What will happen to defaulters? The taxman noted it would freeze bank accounts and block the KRA PINs of taxpayers who default on payment plans. The government’s principal revenue collector noted the measures will seal tax evasion loopholes. KRA’s domestic taxes department lead expert Miriam Macharia said taxpayers who fail to pay on time should alert the taxman for re-scheduling payment. “When you sign the amnesty agreement, you sign a contract to honour. The danger of enforcement after you default is that we usually collect all the money we find so that you stop enjoying the luxury of time of having a payment,” Macharia said.
by Japhet Ruto