Effective 1st July, the Finance Act 2023 introduced provisions for administrative co-operation between parties (States) with Mutual Administrative Assistance agreement in tax matters.
This provision provides the Commissioner authority to enforce assessment and collection of taxes under tax agreements that Kenya is a part.
Some of the resulting implications include the following:
- The commissioner shall recover tax claims requested by the competent authority of a State party to the international tax agreement.
- The administrative co-operation include the assessment and recovery of taxes, exchange of information and simultaneous tax examinations.