Kenya’s revenue authority has rejected applications from at least 540 firms and has recovered 8.54 billion Shillings ($70.9 million) from defaulters and tax cheats, Business Daily newspaper reported.

The applications valued at Sh287 million were rejected as the income declared was reportedly earned outside the qualifying period of July 1, 2015, to June 30, 2020, for the Voluntary Tax Disclosure Programme.

The authority said that companies under audit or investigation or party to ongoing litigation for tax liability were rejected.  

Recoveries reached Sh9.561 billion under the tax amnesty programme from January 2021 to June this year.

Nearly 855 firms and 940 individuals had declared their tax liabilities under VTDP in the period under review. More applications are likely to be filed by December 2023.

The three-year scheme, launched in January 2021, allowed businesses and individuals suspected of tax evasion from penalties if they declared arrears and promised to pay them.

(Editing by Seban Scaria )