It is seldom for the Government to consider clemency to its offenders; in fact it’s a lifetime opportunity to get amnesty or waivers for the past wrongs. They say opportunity comes ones in a lifetime and yes opportunity has knocked at the doors of tax payers at a time they are struggling with the adverse effects of Covid-19, an opportunity to clean the past dirty linen and move forward with a clear conscience. As the Polish proverb goes “The best asset is a clean conscience” it is indeed the time to acquire this asset by declaring what is due to the taxman.
Did you know that the Kenya Revenue Authority has launched a tax amnesty programme dubbed Voluntary Tax Disclosure Programme (VTDP) that runs from 2021-2023.
This is a programme where a taxpayer confidentially discloses tax liabilities that were previously undisclosed to the Commissioner for the purpose of being granted relief of penalties and interest of the tax disclosed.
Tax payers are eligible to undertake this programme for tax periods of up to 5 years prior to 1st July 2020. This is from 1st July 2015 to 30th June 2020.
The Voluntary Tax Disclosure Programme covers a wide scope of taxes these include:
| Corporate tax | Withholding tax | Withholding VAT |
| Value Added Tax | PAYE | Individual Income Tax |
| Excise | Capital Gains Tax | Turnover tax |
Other than providing an avenue for taxpayers who had previously not disclosed their income to do so without imposition of punitive penalties and interest, the programme will have the following benefits;
Related: Tax Planning Strategies in Kenya