Taxman collects Sh21 billion from dispute resolution

Kenya Revenue Authority (KRA) has collected over Sh21 billion from its Alternative Disputes Resolution (ADR) mechanism.

This is after resolving 393 ADR cases between July 2020 and March 2021 this year.

The ADR mechanism, which was implemented by KRA in 2015, has seen significant growth in the number of cases resolved and the revenue unlocked.

“This is marked by a 109 per cent growth in the number of cases and 389 per cent increase in revenue during the nine months compared to a similar period in the 2019-20 financial year,” a statement from KRA said yesterday.

The Tax Procedures Act provides that under the ADR framework, disputes should be resolved within 90 days. However, resolution can be achieved in a much shorter time span.

ADR is a mediation process in which taxpayers can opt to represent themselves without the need for an advocate or a tax representative. It is pocket-friendly as it does not require payment of any filing fees.

“Despite the current Covid-related challenges, resolution of disputes through ADR has remained unhampered as meetings are conducted virtually. This has further reduced the time within which the meetings are held,” KRA said.

The average time taken to resolve ADR cases has reduced from 89 days in the 2019-20 financial year to 42 days in the current year.

KRA said the ADR process preserves the relationship between the taxpayer and the authority.

“The mediator ensures that parties are not antagonised and maintains cordial relationships,” the statement said. “The process provides a win-win outcome for the parties and prevents further escalation of disputes.”