The Tax Procedures Act, 2015

Offence	2020-April	FA-2018	TPA 2015	Prior to 2016
Income tax general penalty no specific penallty available for offence	No Change	No provision	No provision	• KES 100,000 max or max 6 months imprisonment or both
Failing to register for taxes	No Change	KES100,000 per month subject to a max. of KES1 million	KES100,000 per month subject to a max. of KES1 million	• VAT – KES 200,000 or max imprisonment 2 years or both • Excise license – KES 500,000 • Income Tax – No specific penalty
Failure to keep documents	No Change	KES 100,000 or 10% of the amount of tax payable	KES 100,000 or 10% of the amount of tax payable	No provision
Late submission of PAYE	No Change	The higher of 25% of the tax due or 10,000	The higher of 25% of the tax due or 10,000	KES 10,000
Late submission of return other case	No Change	The higher of 5% of the tax due or • KES 20,000 corporates • KES 2,000 individuals	The higher of 5% of the tax due or KES 20,000	Higher of •Company-5% or KES 10,000 •Individual-5% or KES 1,000
Late submission of VAT or excise return	No Change	The higher of 5% or KES 10,000	No provision	The higher of 5% of the tax due or KES 10,000
Late submission of Turnover tax	KES 1,000	• abolished and replaced by presumptive tax. • Jan 2020 (FA 2019) reintroduced. • 2020 April KES 1,000 • presumptive tax abolished (TLA 2020)	KES 5,000	KES 2,000
Failure to submit any other document	No Change	KES 1,000 daily max KES 50,000	1,000 daily max 50,000	No provision
Failure to Pay due tax	No Change	5% of tax due	5% of tax due	20% of outstanding amount
Failure to comply with electronic tax systems	No Change	KES100,000	KES100,000	No provision
Tax shortfall on deliberate provision of false or misleading statement	No Change	• 75% on tax shortfall (on fraud) • 20% (any other case) • Penalty reduced by 10% on voluntary disclosure	• 75% on tax shortfall (on fraud) • 20% (any other case) • Penalty reduced by 10% on voluntary disclosure	• VAT – KES 1 million or 3 yrs or both • Income Tax– 200% of tax amount involved
Tax Avoidance	No Change	Double the amount of tax	Double the amount of tax	No provision • Commissioner has powers to reverse a transaction • and impose penalties
Tax Avoidance (refunds)	No Change	Two times the amount of the claim	Two times the amount of the claim	VAT – 200% of claimed amount