waiver

The Kenya Revenue Authority (KRA) has announced a waiver on all penalties and interests for all interested taxpayers with outstanding balances.

Rispah Simiyu, the Commissioner for Domestic Taxes told journalists on Monday, August 9, that the taxman was offering up to 100 percent waiver on penalties as well as interest.

She noted that the process of applying for the waiver was also now simplified and could be done exclusively through iTax.

Further KRA says that for seven months, the process was exclusively manual hence locking out a huge number of interested applicants, now, with the widening of the application platform, many eligible individuals and companies stand a chance to have the fees waived.

“Uptake has been low, perhaps due to inability by taxpayers to lodge their applications on iTax.”

“With the process now automated, it is expected that the uptake will improve since it is convenient and simple to lodge a Voluntary Tax Disclosure Programme (VTDP) application online,” read the report in part.

Where taxpayers fail to pay their taxes or file returns by stipulated due dates, penalties and interest are charged in accordance with the law. The penalty and interest are taxes that are payable. However, they may apply to the Commissioner to remit such penalties and interest.

This provision covers only penalties and interest. The principal tax has to be settled in full.

Penalty and interest charged under fraud or tax evasion are excluded from consideration for a waiver.

How to apply for the waiver online

  1. Head over to iTax and log in to your personal or business profile
  2. Head to the Debt and Enforcement tab from where you can request for waiver of penalties and interest on a sub-menu tab.
  3. Fill out the forms including Section A, Section B, their personal information among others.
  4. The applicants can then download the acknowledgment receipt for the waiver application.

All applications should state the reason(s) why the taxpayer should be considered for a waiver, giving evidence to support each of the reason(s).

 

Nigel Jr.
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