Introduction
The Finance Act 2023 introduced a tax amnesty for interest and penalties on tax debt by introducing a new section 37 E to the Tax Procedures Act, 2015.

Applicability
The Commissioner shall refrain from recovering penalties or interest on tax debt where;
i. A person with penalties and interest but has no pending principal taxes owing for periods up to 31st December 2022. The amnesty under this category shall be automatic and taxpayers will not be required to apply.

ii. A person who has principal tax accrued up to 31st December 2022 but pays the outstanding principal tax debt by 30th June 2024. The amnesty under this category shall not be automatic and taxpayers will be required to apply. Also, the application must accompany a payment plan proposal for the outstanding principal taxes.

NB. All taxpayers with tax liabilities that are under any dispute process will qualify for the amnesty as long as they meet the conditions of the amnesty.

Exclusion from Tax Amnesty
• Interest and penalties that are a result of tax avoidance shall not qualify for amnesty.
• All penalties and interest relating to tax principal accrued for the periods after 31st December 2022, shall not qualify for the amnesty

Effective Date
The tax amnesty commences on 1st September 2023 and shall remain in force until 30th June 2024.