tax ACADEMY
Konnectplus

KENYA

The Tax Procedures Act, 2015





Chapter 18

Tax Offences & Penalties (First Schedule)

The followng penalties are due for non filing of returns for the relevant taxes:-

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




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