ADVOKS GLOBAL · KENYA
Tax Procedures Act
37D. Voluntary Tax Disclosure Programme
Edition: 2026-09-01 · In force
37D. Voluntary Tax Disclosure Programme
(1)There is established a programme to be known as the Voluntary Tax Disclosure Programme which shall be for a period of three years with effect from the 1st January, 2021.(2)For purpose of this section, "voluntary tax disclosure programme" means a programme where a person discloses the person's tax liabilities to the Commissioner for the purpose of being granted relief of penalties and interest on the tax disclosed.(3)A person with a tax liability may apply to the Commissioner for relief in the prescribed form with respect to tax liabilities that accrued within a period of five years prior to the 1st July, 2020.(4)A person granted relief under this section shall not be prosecuted with respect to the tax liability disclosed under this section and shall be granted-(i)where the disclosure is made and tax liability paid in the first year of the programme, a full remission of the interest and penalty;(ii)where the disclosure is made and tax liability paid in the second year of the programme, remission of fifty per cent of the interest and penalty; and(iii)where the disclosure is made and tax liability paid in the final year of the programme, remission of twenty-five percent of the interest and penalty.(5)An application under subsection (3) shall be voluntary and disclose all material facts.(6)Where the Commissioner is satisfied with the facts disclosed in the application under subsection (3), the Commissioner shall grant the relief applied for:Provided that the relief shall not result in the payment of a refund to the person.(7)Where the Commissioner grants relief under subsection (6), the Commissioner shall enter into an agreement with the person setting out the terms of payment of the tax liability and the period within which the payment shall be made which shall not exceed one year from the date of the agreement.(8)Where a person fails to meet the terms of the agreement under subsection (7), that person shall be liable to pay the full interest and penalty that had been remitted under the agreement.(9)A person granted relief under this section shall not seek any other remedy including the right to appeal with respect to the taxes, penalties and interest remitted by the Commissioner.(10)Where, before the expiry of the agreement between the Commissioner and the person, the Commissioner establishes that the person failed to disclose a material fact in respect of the relief granted under this section, the Commissioner may-(a)withdraw any relief granted;(b)assess and collect any balance of the tax liability; or(c)commence prosecution under section 80.(11)A person aggrieved by a decision of the Commissioner under subsection (10) may appeal against the decision.(12)This section shall not apply to a person if the person-(a)is under audit, investigation or is a party to ongoing litigation in respect of the tax liability or any matter relating to the tax liability; or(b)has been notified of a pending audit or investigation by the Commissioner.(13)The disclosure of a tax liability under this section shall be confidential.