KRA Receives 21 Billion Kenyan Shillings Via Alternative Dispute Resolution Option

The Kenya Revenue Authority (KRA) has reportedly received more than 21 Billion Kenyan Shillings through its Alternative Disputes Resolution (ADR) mechanism.

This is coming after the government agency which is responsible for the accounting, assessment, and collection of all revenues that are due to the Kenyan government, in accordance with the laws in and of Kenya, has so far been able to resolve 393 Alternative Disputes Resolution (ADR) cases in the financial year between July of 2020 and March 2021.

According to the Kenya Revenue Authority (KRA) Commissioner, Legal Services and Board Coordination; Paul Matuku the Alternative Disputes Resolution (ADR) has experienced an increase in the number of cases resolved as well as the revenue collected.

The Alternative Disputes Resolution (ADR) is a voluntary, participatory and facilitated discussion over a tax dispute between a taxpayer and the Commissioner. It is a facilitated mediation and not an arbitration as the affected parties are facilitated to find the necessary solutions for the dispute.

The Data available reveals that there has been a 109 percent growth in the Alternative Disputes Resolution (ADR) cases and a 389 percent increase in the revenues generated between July of 2020 and March 2021.

According to the Tax Procedures Act all disputes under the Alternative Disputes Resolution (ADR) mechanism must be settled within a period of 3 months. The Alternative Disputes Resolution (ADR) can however take a shorter time to be resolved than what is stipulated in the law.

The Alternative Disputes Resolution (ADR) process does not require any affected party to pay filing fees and or be represented by a lawyer as the entire procedure occurrs virtually.

The average time that it takes to resolve Alternative Disputes Resolution (ADR) cases has been reduced from a period of 89 days during the 2019 to 2020 financial year, to 42 days as of the time of putting this article together.

With the Alternative Disputes Resolution (ADR) mechanism a taxpayer will only be required to present documents for verification. This not the case at court hearings or at the tax tribunal.

Data from the Kenya Revenue Authority (KRA) revealed that the number of applications for Alternative Disputes Resolution (ADR) has increased from 425 in the 2019 to 2020 financial year, to 661 in the current 2020 to 2021 financial year.

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