KENYA REVENUE AUTHORITY

DOMESTIC TAXES DEPARTMENT

VAT TAX AMNESTY

The Finance Act 2004 amended the VAT Act by inserting a new Section 14A which provided for Tax Amnesty where:

• the Tax was paid
• all returns or amended returns in respect of the tax were submitted on or before 31 st December,2004 provided that the taxpayer was not under audit or investigation for the period Amnesty was applied for.

Kenya Revenue Authority required that Amnesty applications strictly follow the procedure below:

• submission of the application for tax amnesty,
• submission of returns or amended/additional returns on the undeclared tax,
• declaration and payment on or before 31 st December, 2004 of any tax which had not been declared before 11 th June, 2004.

The VAT Act provides that returns be made on monthly basis. This equally applied to tax amnesty returns. VAT Amnesty covered periods up to May 2004 and only returns with tax due paid on or before 31 st December,2004 qualified.

Most of the VAT Amnesty applicants who complied with the requirements have been issued with letters confirming grant of amnesty.

However, it has been extremely difficult to process amnesty cases for taxpayers who filed annual/single returns and made block / lump sum payments for the amnesty period applied for. We have repeatedly requested such taxpayers through letters and telephone calls to avail monthly breakdown/analysis schedules specifically stating the Additional Tax Voluntarily declared and paid under amnestybut some have not responded.

A response is required within 14 days from the date of this notice. This serves as our final notice regarding this matter.

Taxpayers who applied for the special waiver are also requested to comply with the above requirements.

For further details, Please contact Mrs. J.N.Njagi, on Tel No.2813079 or 2813068 or visit Times Tower- 21 st Floor.

COMMISSIONER FOR DOMESTIC TAXES