The Finance Act 2026 brought back a tax amnesty. If you owe tax for any period up to 31 December 2025, the penalties and interest on it are waived, provided you pay the full principal tax by 31 December 2026.
Who should look at this
- Businesses with VAT, PAYE or withholding tax returns that were filed late or not filed at all.
- Anyone who has received an assessment and has been paying only part of it.
- Individuals and companies with income that was never declared.
- Businesses whose KRA ledger shows penalties and interest larger than the tax itself.
Why it matters
On old debts, penalties and interest often add up to more than the original tax. Paying the principal before the deadline can clear a large part of what you owe. After 31 December 2026, the full amount stands again.
How we approach it
- We pull your KRA ledger and match it against your own records, because ledgers often carry errors and duplicate entries.
- We separate the principal tax from penalties and interest for each period.
- We file any missing returns so the principal is calculated correctly.
- We plan payments so the principal is cleared before the deadline.
Do not leave this until December. Correcting a ledger and filing missing returns takes time, and iTax gets busy near year end. Ask us to review your KRA position.