KRA ISSUES ULTIMATUM FOR LANDLORDS TO GET AMNESTY
The taxman insists that landlords whose annual gross rental income is not more than Sh10 million will only qualify for an amnesty proposed in the Finance Bill 2015 if they fully remit levies due for last year and this year by June next year.
In the Bill, tabled before the National Assembly in June, the Kenya Revenue Authority has been barred from assessing or recovering taxes, penalties or interest accrued by the landlords up to Sh10 million annual for the financial years up to 2013.
This comes as the agency targets to increase tax compliance levels among growing individual landlords.
“The Kenya Revenue Authority wishes to notify taxpayers and the general public that the government, through the Finance Bill, 2015, has granted a tax amnesty for individual landlords on their rental income,” the authority said in a reminder to landlords last week. “The landlords applying for amnesty will be issued with amnesty certificates upon confirmation and will not be required to apply for waiver of interest and penalties.”
These landlords are under the proposed tax administration system required to pay 12 per cent of their gross rental income after Treasury Secretary Henry Rotich changed policy during his Budget Statement on June 11.
Source: the star