The Minister for Finance announced a Tax Amnesty on 10th June, 2004 when presenting the 2004/2005 Budget. The amnesty covers penalties or fines under the Customs & Excise Act (Cap 472); additional tax, penalties or fines under the Value Added Tax Act (Cap 476); and penalties and interest under the Income Tax Act (Cap 470). Kenya Revenue Authority wishes to request the general public to take advantage of the amnesty which will lapse on 31st December 2004. The procedure is simple!

(A) Customs & Excise Duties

-Call at any Customs office with an application for amnesty.

-Submit any relevant documents or returns in respect of the dutiable goods and motor vehicles.

-Pay to the Commissioner of Customs and Excise, import duty, excise duty and VAT on any goods imported into the country before 11th June, 2004.

-Pay to the Commissioner of Customs & Excise, excise duty on excisable goods manufactured and sold locally before 30th April, 2004.

-Specifically, we wish to encourage those with improperly registered motor vehicles to take advantage of the amnesty to regularize their registration. No Penalty or Fines shall be imposed where duty is paid in full on or before 31st December 2004. No queries will be raised on voluntary disclosure of duty and a letter confirming grant of amnesty will be issued.

(B) Value Added Tax (VAT)

-Call at any VAT office with an application for amnesty.

-Submit returns or amended returns on the undeclared tax.

- Pay VAT on undeclared taxable goods and taxable services to the Commissioner of VAT where tax was due before 11th June, 2004.
No Additional tax, Penalties or Fines shall be imposed where VAT is paid in full on or before 31st December 2004. No queries will be raised on voluntary disclosure of tax and a letter confirming grant of amnesty will be issued.

(C) Income Tax

-Call at any Income Tax Office with an application for amnesty.

-Submit returns or amended returns containing previously undisclosed income for any year of income ending on or before 31st December 2003. ? Pay As You Earn (PAYE) and Withholding Tax cases are also covered by the amnesty.

-Pay tax to the Commissioner of Income Tax on previously undisclosed Income, PAYE or Withholding Tax. No Penalties and Interest will be imposedwhere tax is paid in full on or before 31st December, 2004. No queries will be raised on voluntarily disclosed income and a letter confirming grant of amnesty will be issued. Remember:

-Since investigation cases can go back beyond 7 years, here is an opportunity to declare voluntarily, taxes or duties dating back more than 7 years.

-Persons who take up the amnesty will be issued with a letter confirming the extent of voluntary disclosure and such disclosure shall not be a subject of audit or investigation.

-If non compliance is detected at a subsequent date, it will not invalidate the amnesty already granted but will be handled in the normal way.

APPLY NOW.

M. G. WAWERU

COMMISSIONER GENERAL