The Kenya Revenue Authority (KRA) said companies and individuals voluntarily paid Sh5.89 billion by December 31, 2021, the end of the first full year of the Voluntary Tax Disclosure Programme.
Tax evasion cases should be left to play out through the existing legal system.
The revenue collected under the taxman’s amnesty programme is proof that the use of less aggressive tactics from time to time can help boost tax compliance.
The Kenya Revenue Authority (KRA) said companies and individuals voluntarily paid Sh5.89 billion by December 31, 2021, the end of the first full year of the Voluntary Tax Disclosure Programme.
The amnesty, which runs for three years, cushions tax cheats from penalties and legal suits. It was well designed, being available to only those who are not already being investigated for tax evasion.
Tax evasion cases should be left to play out through the existing legal system.
It is expected that those who took up KRA’s offer and came clean will now continue paying their fair share of taxes, effectively expanding the tax base.
The KRA said that 1,311 firms paid Sh5.76 billion, with the rest coming from individual taxpayers.
Taxes declared by companies and individuals were higher at Sh8.572 billion, meaning that some of the dues remained to be collected in the short term.
The amnesty is turning out be successful, signalling that the KRA is interested in collections and not punishing taxpayers.
It’s time to assess use of amnesty and enforcement.
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Note: The results are not exact but very close to the actual.
