KRA mediated disputes grow by 11 fold
The Kenya Revenue Authority (KRA) resolved 11 times more tax disputes through mediation in the fiscal year ended June 30 that six years prior.
552 tax dipsutes heard through the Alternative Disputes Resolution (ADR) were concluded in the period in contrast to just 49 disputes in the year to June 30, 2016.
This is while netting Ksh.31.4 billion revenues against an initial target of just Ksh.10.3 billion.
The tax man has been pushing the throttle to resolve tax disputes outside the lengthy and often complicated judicial process.
During the past on year, KRA says it has leveraged technology to grow the use of the mediated process against disruptions brought about by the COVID-19 pandemic.
“To fast track resolution of cases, all ADR meetings were conducted virtually during the year, reducing the average time taken to resolve the cases from 69 days to 42 days.
The mediation process to tax disputes was iniated through the 2015, Tax Procedures Act.
The process is voluntary and can be initaed by either an aggrieved taxpayer or the Commissioner.
Tax disputes workable through the mechanism are steered by a facilitator and are supposed to be concluded within 90 days.
ADR holds a number of advantages over the traditional legal process including flexibility on procedure and solutions alongside timeliness and cost effectiveness.