Kenya Revenue Authority(KRA) intends to change its name to Kenya Revenue Service to enhance its public image, ensure tax compliance and maintain a clear focus on taxpayers’ needs.
The rebranding will happen as soon as amendments are made to the current KRA Act.
“I have also proposed consequential amendments to other statutes that reference the name ‘Kenya Revenue Authority’ and align them to the proposed new name, said Treasury and National Planning CS Ukur Yatani while tabling Kenya’s 2022/23 budget proposal in parliament.
The proposal is happening when KRA is locked in numerous legal battles and disputes with several taxpayers, severely crippling its tax collection.
To resolve the long-running disputes with payers, Treasury intends to amend the Tax Appeals Tribunal Act 2013 to require a deposit of 50 per cent of the disputed tax revenue with the Central Bank of Kenya(CBK) when the Tribunal makes a ruling in favour of the Commissioner-General KRA as the taxpayer proceeds to appeal the decision.
Treasury is also proposing that if the taxpayer receives judgment in their favour on the final determination of the matter, the 50 per cent deposit shall be refunded to the taxpayer in a period not exceeding 30 days after the final determination of the case by the Courts.
The Tax Procedures Act empowers the Commissioner-General, KRA to issue direction to the Land Registrar to put a caveat on land or restriction on the transaction for taxpayers with tax arrears.
Several Tax policy measures in the 2022/23 budget are contained in the Finance Bill, 2022 and will become effective from 1st July 2022. This is after this Bill is tabled and approved by parliament before this month ends.