Voluntary Tax Disclosure Programme | Ronalds LLP

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 that runs from 2021-2023.

What is Voluntary Tax Disclosure Programme (VTDP)?

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 period under consideration

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.

Which taxes are covered under the VTDP?

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 benefits of this programme.

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;

  1. A person granted relief under the programme shall not be prosecuted on the same set of facts in respect of the fully disclosed and paid taxes
  2. A person shall be issued with a VTDP certificate, which shall serve as evidence that the person took advantage of the VTDP for the taxes of the periods specified in that certificate.
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