KRA recovers Sh8.3 billion using out-of-court process

KRA has raised Sh8.3 billion through out-of-court settlements over tax disputes.

It announced yesterday the amount had been collected from181 firms by April 30 through the alternative dispute resolution mechanism.

KRA said it had engaged a pool of facilitators who handled the disputes.

The taxman has developed a framework which gives general guidance to parties in a dispute wishing to engage in the ADR.

“It is a process by which taxpayers seek to have an independent review of a tax assessment, resulting from a tax audit, outside the environment giving rise to the dispute,” KRA said in a statement.

It said taxpayers’ rights to challenge a tax assessment and get a fair hearing are safeguarded. ADR is provided for in the Constitution as well as in other tax legislation.