Reprieve for KRA agents in proposed waiver on delayed remittances » Capital News
NAIROBI, Kenya, Aug 25 – Agents mandated by the Kenya Revenue Authority (KRA) to collect taxes on its behalf are headed for a major reprieve in the proposed waiver plan on delayed remittances.
The proposal contained in the Kenya Revenue Authority (Amendment) Bill, 2024 will also help traders and other businesses not suffer penalties on delayed payments.
The Bill by Majority Leader Kimani Ichung’wah is proposing to amend Section 15a of the Kenya Revenue Authority Act to give the Treasury Cabinet Secretary power to waive the penalty payable by an appointed agent who fails to transfer collected funds.
The Bill went through the first reading on August 15, 2024 and committed to the Committee on Finance and National Planning for consideration.
The Clerk of the National Assembly has called for views on the Bill.
According to the Bill, the waiver shall only be considered whenever the failure is found to be inadvertent or the agent has been out under receivership or statutory management.
The Bill reads: “Section 15a of the Kenya Revenue Act is amended by inserting ‘The Cabinet Secretary may waive part or the whole of the penalty due under subsection 3 immediately after subsection 4’.”
Such a waiver, it adds, shall be offered if the payment suffered system downtime, no negligence or prior notification of receivership.
Agents have in the past had to transfer the burden of paying penalties to traders once they delay in remitting collected revenues making businesses and companies incur massive loses.
The Bill is seeking to end this practise through a waiver and only impose penalties on delays without valid causes.
Additionally, the Ichung’wa Bill is amending the Kenya Revenue Authority Act (Cap. 469) to provide that Deputy Commissioners be appointed by the Commissioner-General.
To enable this, the Bill is seeking to amend Section 13 of the existing law by deleting the expression “and Deputy Commissioners” and inserting “The Commissioner-General shall appoint such Deputy Commissioners as may be deemed necessary”.
The proposed amendment will also cause changes in the administration of the Kenya School of Revenue Administration by causing expanded roles that will see an understanding of revenue matters extended across the country.
The Kenya School of Revenue Administration will soon start partnering with other institutions of higher learning in expanded programs should the proposed amendment to the existing KRA Act (Cap. 469) get the nod of the National Assembly.
The Kenya Revenue Authority (Amendment) Bill, 2024 is proposing to alter three Sections of the Kenya Revenue Act (Cap. 469) to among other things cause a collaboration between the revenue body and other institutions of higher learning.
In collaboration with other institutions of higher learning, the Bill is proposing to amend Section 5 of the existing Kenya Revenue Act (Cap. 469) to provide the much needed legal framework to enable the revenue school to expand its learning programs.
Among the learning areas proposed in the new Bill is provision of programs in revenue administration, developing curricula and assessing or examining students as well as award qualifications.
“Section 5 is proposed for amendment to introduce subsection 2b to cause for expanded functions of the Kenya School of Revenue Administration,” the Bill reads.
Among the expanded functions include offering directly or in collaboration with any other institution of higher learning programs in revenue administration and any other programs as may be deemed fit.
This is in addition to development of curricula and assessment or examination of students and awarding of certificates.
The public has until September 9, 2024 to submit views about the Bill.
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