The Kenya Revenue Authority (KRA) has announced the recovery of Sh86.5 billion through its Tax Dispute Resolution programme.
According to a statement by the taxman, the funds were unlocked through a mix of independent reviews, including the Alternative Dispute Resolution (ADR) mechanism and successful court litigation.
“During the review period, Sh18.9 billion was collected through ADR, while Sh67.6 billion was recovered following 2,389 successful court outcomes,” KRA stated.
The agency noted that it is stepping up efforts to boost revenue collection by adopting more efficient and less confrontational approaches.
During the same period, the Independent Review of Objections Section processed 3,594 cases.
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ADR, which is voluntary and participatory, has gained traction with 1,152 cases successfully concluded under this framework in the financial year.
This strategy, KRA emphasized, helps resolve disputes early, reducing both the time and costs typically associated with full litigation.
The Authority praised the programme’s performance, describing it as exceptional and evidence that taxpayers are increasingly embracing the initiative.
Unlike traditional court proceedings, Alternative Dispute Resolution (ADR) is less formal, more flexible, confidential, cost-effective and typically results in faster settlements. The process allows both parties to choose the forum and retain control over the proceedings.
KRA highlighted that ADR not only facilitates the resolution of disputes but also fosters a more cooperative relationship between the Authority and taxpayers. It urged Kenyans to remain compliant to avoid future disputes and to utilize the available resolution mechanisms when needed.
“This remarkable performance underscores the fact that taxpayers have fully embraced the Tax Dispute Resolution programme, particularly ADR,” the Authority stated.
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The Kenya Revenue Authority’s Legal and Board Services Department has reiterated its dedication to promoting tax compliance while ensuring disputes are resolved efficiently and fairly.
“KRA encourages all parties engaged in tax disputes to embrace Alternative Dispute Resolution (ADR) as an effective, affordable, and efficient way to settle matters,” the Authority asserted.
