Understanding the Tax Procedures (Amendment) Bill, 2024: What It Means for Taxpayers

The Kenyan Government has recently introduced the Tax Procedures (Amendment) Bill, 2024, which proposes several significant changes to the Tax Procedures Act. These amendments are designed to provide relief to taxpayers, enhance the efficiency of tax collection, and ensure fairness in the tax appeals process. As a trusted legal partner, B M Musau and Company, Advocates LLP is committed to keeping our clients informed on how these changes may impact them.

 

Key Amendments and Their Implications

• Extension of the Tax Amnesty Deadline

One of the most notable changes in the Bill is the extension of the tax amnesty deadline. Originally set to expire on June 30, 2024, the deadline has been extended to June 30, 2025. This extension provides taxpayers who have not yet settled their principal tax dues with additional time to benefit from the waiver of interest, penalties, and fines that may have accrued. To qualify for this amnesty, taxpayers must settle all outstanding principal taxes by the new deadline and comply with certain conditions set forth in the Bill.

• Introduction of Tax Relief Due to Recovery Challenges

The Bill introduces a new section (Section 37F) that empowers the Commissioner of the Kenya Revenue Authority (KRA) to recommend tax relief in cases where recovering unpaid taxes is deemed impossible, excessively difficult, or inequitable.

The Commissioner can refer such cases to the Cabinet Secretary for National Treasury and Economic Planning, who may then approve partial or full relief from the tax owed.

This provision is a significant step towards ensuring fairness and addressing hardships faced by taxpayers under challenging circumstances.

Any approved reliefs will be published in the Gazette and laid before the National Assembly for oversight.

• Exclusion of Non-Working Days in Appeals

The Bill also amends the computation of time for lodging objections and appeals in tax matters. Under the new provisions, Saturdays, Sundays, and public holidays will be excluded from the time frame within which taxpayers must lodge objections to the Commissioner or appeal to the Tax Appeals Tribunal, the High Court, or the Court of Appeal.

This amendment will ensure that taxpayers are not disadvantaged by non-working days when seeking redress or challenging tax assessments.

 

What This Means for You

For businesses and individuals, these amendments provide an opportunity to regularize their tax affairs and benefit from the extended amnesty period.

Additionally, the new provisions for tax relief offer a potential remedy for those facing insurmountable challenges in settling their tax debts.

At B M Musau and Company, Advocates LLP, we advise our clients to review their tax positions carefully considering these amendments. Taking proactive steps now could lead to significant savings and avoid future complications.

 

Our Role

As always, we are here to support you in navigating these changes. Our experienced tax law team is available to assist with any queries, guide you through the process of applying for tax amnesty or relief, and represent you in any appeals or objections.

For further assistance, please contact us at info@bmmusau.co.ke or visit our website at https://bmmusau.co.ke .

 

This article is intended for informational purposes only and does not constitute legal advice. The information provided herein is subject to change and should not be relied upon without consulting a qualified legal professional. B M Musau and Company, Advocates LLP is not responsible for any actions taken based on this article. For specific legal advice tailored to your situation, please contact our offices directly.