More Kenyans opt to solve tax disputes through ADR

NAIROBI, Kenya March 14-More Kenyans are now opting to solve their tax disputes through Alternative Dispute Resolution(ADR) compared to other dispute resolution mechanisms such as litigation processes which are more time-consuming.

The Kenya Revenue Authority’s ADR successfully resolved 319 cases during the first half of this financial year, compared to 243 cases resolved during a similar period in the last financial year, a 31 per cent increase.

During the half-year period between July 2021 to December 2021, the average number of days taken to resolve tax disputes at ADR was 42 days which is less than half of the statutory timelines of 90 days.

“This represented a higher level of efficiency compared to the time taken to resolve a tax dispute in an adversarial process, which often spans years,” KRA said in a statement.

According to the Tax Procedures Act, cases under discussion outside of the Tax Appeals Tribunal or Courts should be resolved within 90 days. This provision ensures that disputes are resolved expeditiously and not inordinately delayed.

Notwithstanding the legal provision for resolution of tax disputes within 90 days, cases can and have previously been settled in considerably less time through the ADR process.

The taxman has been encouraging taxpayers to utilize the ADR process in resolving tax disputes as it is more flexible, cost-efficient, confidential, and time-saving.