Kenya Revenue Authority (KRA) has released for collection a total of KES 86.518billion through its Tax Dispute Resolution programme. The Authority utilises the Independent Review of Objections, its Alternative Dispute Resolution (ADR) mechanism and litigation, resulting in significantly enhanced revenue collection.
During the period under review, KES 18.898 billion was released for collection through KRA’s ADR mechanism, while KES 67.620 billion was released for collection as a result of 2,389 successful outcomes in the courts.
Through its independent review of objections section, the KRA undertook independent reviews of 3,594 objection cases as part of its broader Tax Dispute Resolution framework.
These reviews aim to prevent escalation into litigation processes which can be lengthy and costly to the parties. Furthermore, during the financial year, KRA concluded 1,152 cases through its ADR mechanism.
This outstanding performance demonstrates that taxpayers have embraced the Tax Dispute Resolution programme, particularly ADR, which continues to gain preference as a method for resolving tax disputes. ADR is a less confrontational alternative to the court system.
Being a voluntary and participatory process, it allows parties not only to choose the forum but also to control the process. It is also less formal than court proceedings, offering greater flexibility.
In addition, ADR is confidential, cost-effective, and often results in quicker settlements.
KRA urges all parties involved in tax disputes to consider ADR as a viable, cost-effective, and efficient resolution mechanism. Additionally, KRA encourages taxpayers to remain compliant to avoid future disputes.
