This is a good move by the government. However, I would like to advise the Finance Minister that instead of the Amnesty to cover Tax admnistered by the mentioned Act it should cover all areas including BRELA levies and taxes, etc.
Keep it up.
How does it work… nipe elimu kidogo. Unapewa msamaha, halafu kama hukusema ukweli you might face criminal liability… sijaelewa how it works
A rule or law issued by the government to forgive tax debts of previous years to taxpayers. Through this measure the government provides a benefit to taxpayers by allowing them to rectify mistakes or omissions in tax returns without fear of legal actions.
The amnesty is usually established for a fixed period of time and may be related to outstanding tax debts of one or more annual periods. If the taxpayer fails to cancel the debt by taking advantage of the amnesty, and then the evasion is discovered, severe punishment and sanctions apply.
The Tax Amnesty is proposed to start form 01 June to 31 December 2018. Please read page 47 of the proposed budget document. It does not cover principal amount. It is for interest and penalties only. Let us pray the MPs approve it.
QUOTE Honourable Speaker, I propose to make amendment in the Tax Administration Act, CAP 438 in order to introduce Tax Amnesty. The proposed 100 percent amnesty on interest and penalties will exist for six months starting from 1st July 2018 up to 31st December 2018. This measure is expected to improve tax compliance by 10 percent and hence enable the Government to collect the outstanding principal amount.
The amendment in the Tax Administration Act is expected to increase Government revenue by shillings 500,000 million.UNQUOTE
@kyekomakubi ni kwamba unadaiwa Kodi na kwa kuwa umechelewa kulipa kodi unatozwa faini au deni lako linazalisha riba. Sasa serikali inaondoa faini au riba ili ulipe kodi stahiki! Au siyo @ThinkingAloud ?
Asante nimekupata. Nilitaka kujihakikishia kuwa ninavyoelewa ni sawa. Nilikuwa sijaelewa vizuri. Asante sana. Nimesoma article kutoka Indonesia walifanya hivyo lakini matokeo hayakuwa mazuri.
Ona hii ya Indonesia
Jakarta. President Joko Widodo’s administration has been trying for almost six months now to get lawmakers to pass a tax amnesty bill into law.
The bill has already overcome a bout of political hand-wringing early this year that almost cost the country its powerful anti-corruption agency. And just recently, it found an unexpected driving momentum from the so-called Panama Papers, an international data leak that has linked some of Indonesia’s rich and powerful with tax-dodging.
The government pinned its hope on the tax amnesty to repatriate trillions of rupiah now stashed abroad and, in the process, score additional tax revenue to keep the state budget deficit from widening.
But though the finish line now seems to appear within the government’s grasp, a consensus on the tax amnesty bill from the different political factions in the parliament remains evasive. The House of Representatives went into their three-week recess on April 29, without reaching an agreement on the bill.
Still, House leaders and the government remain optimistic they can resolve their differences once the lawmakers start discussing the bill again on May 17.
In the meantime, here are the things we know about the current tax amnesty bill.
What is tax amnesty?
According to the latest version of the bill, tax amnesty is a free-pass for taxpayers to disclose incomplete or unreported income in their previous tax periods without having to face prosecution by the tax court or pay any penalty.
During this period, the taxpayers only need to pay a special tax in exchange for a government pardon on their tax liability.
[COLOR=rgb(235, 107, 86)]Similar tax amnesty programs were offered back in 1964 and 1984. They did not have much success due to low participation, according to a scholarly article published by the Finance Ministry.
I strongly support the move. But I would suggest that this amnesty should not be confined to taxes administered by TRA but to all levies administered by all government institutions.
this is a great move by the government,
Allen uko sawa kabisa. Kyekomakubi the definition for Tax Amnesty for the purpose will be provided in the law that will be passed to that effect. Do not take a definition from Indonesia or wherever. That is theirs.