CRS & AMNESTY NEWS
29 January 2018
Dear Clients and Business Associates,
As you may be aware, Kenya Revenue Authority ("KRA") has been running a Tax Amnesty program. The Amnesty provides an opportunity for persons who routed untaxed incomes, deemed taxable in Kenya, outside the country to clean their affairs and not suffer tax. Among other conditions, the person has to repatriate funds in the offshore countries and declare assets held abroad. The window to make an application closes on 30th June 2018. Please find the details in the attached newsletter.
The Amnesty opportunity should be evaluated with the OECD Common Reporting Standards ("CRS") in mind. CRS is an arrangement where revenue authorities will collect financial information held in bank/financial institution accounts of nonresident persons and sharing such information with jurisdictions where such persons are tax resident. The other revenue authorities would also reciprocate. Kenya aims to join CRS by the targeted 2019. In future, information gathered through CRS may aid KRA audits. This risk should be analysed in light of the Amnesty opportunity by June 2018. The details of these are also outlined in the attached newsletter.