KRA says cases handled through Alternative Dispute Resolution up 31pc

Kenya Revenue Authority has recorded a 31% increase in the number of tax disputes handled through its Alternative Dispute Resolution (ADR) in the first half of the current financial year.

For the half year period ended December 31, 2021, the authority says ADR resolved 319 cases compared to 243 cases handled during a similar period last year.

According to KRA Commissioner for Legal Service Paul Mutuku, ADR received 559 applications between July and December 2021 compared to 493 received during the first half in the Financial Year 2020/2021, representing a growth of 13%.

“The growth in the number of applications to ADR not only signifies an outstanding performance but also confirms the growth in the number of taxpayers who are increasingly embracing ADR in preference to other dispute resolution mechanisms such as litigation processes,” said Mutuku.

The period, KRA also reduced the number of days it took to resolve the cases between the authority and aggrieved taxpayers from the statutory timelines of 90 days to 42 days in what is attributed to higher efficiency

“KRA is encouraging taxpayers to utilize the ADR process in resolving tax disputes. The ADR process is more flexible, cost-efficient, confidential and time-saving. The process also provides the parties with more control over the procedures for resolving the disputes and the results. Parties who resolve their disputes through ADR are generally more satisfied because they have the opportunity to directly participate in arriving at the outcomes and agreeing on the terms of the settlement,” added Mutua.

More taxpayers embroiled in tax disputes with the authority has sought reprieve through ADR which was introduced in 2015 which at inception only handled 49 cases.