The Finance Act 2020 presented the Voluntary Tax Disclosure programme (VTDP) this is aimed to present a possibility to taxpayers who’ve undisclosed tax liabilities in order that they are able to expose the similar to the Kenya Revenue Authority without dealing with any felony penalties or prosecution. This progrmme will probably be open for 3 years efficient 1st January 2021.
How the Voluntary Tax Disclosure programme (VTDP) will probably be applied
This Programme will duvet a duration of 5 years sooner than 1st July, 2020. This would be the duration 30.06.2020 going again to 01.07.2015.
The application will probably be completely voluntary wherein taxpayers shall exhaustively expose all subject material information in terms of the undisclosed tax liabilities in query. The application will probably be to the commissioner within the prescribed utility means.
It’s anticipated that handiest the fundamental tax will turn into due, alternatively, the proportion of consequences and pursuits waived depends upon when one will follow for the relaxation throughout the three-year duration when the programme will probably be appropriate.
Upon a hit utility of the VTDB programme to the commissioner, remission on consequences and passion will probably be as follows;
- Taxpayers who will follow throughout the first 12 months will experience a 100 in step with cent remission of consequences and passion.
- Those that will make the application in the second one and 3rd years of the programme get to experience waivers of fifty in step with cent and 25 in step with cent for consequences and passion respectively.
The VTDP Programme shall function below the next regulations:
After being glad that the main points equipped within the utility through the taxpayer are correct, the Commissioner shall grant a reduction. Thereafter the Commissioner will input into a settlement with the applicant, environment out the phrases of fee of the tax legal responsibility.
Settlements of the tax liabilities will probably be made within three hundred and sixty-five days from the date of the settlement. Then again, if the taxpayer fails to honour the phrases of the settlement, along with the exceptional tax legal responsibility, the total quantity of consequences and passion that have been waived below the settlement will turn into payable.
Non-eligible taxpayers below the VTDP programme
The next classes of taxpayers is probably not eligible for the Voluntary Tax Disclosure Programme
- The ones below Audit or Investigations
- The ones already notified of a pending audit or investigation through the commissioner.
Conclusion
Disclosures below this programme shall stay confidential as confident through the Kenya Revenue Authority(KRA) and Taxpayers who follow for reduction and abide through the foundations relating to fee phrases shall no longer be prosecuted at the tax liabilities disclosed.
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