What Penalties are Charged on Tax Offences?

Tax offences can attract punitive penalties and interest.

These include:

Offence – Failure to deduct PAYE, account for it or to submit a certificate upon request.

Penalty – Whichever is greater of, 25% of the amount of the tax involved or Ksh. 10,000.

Offence – Failure to deduct or pay Withholding Tax.

Penalty – 10% of the amount of the tax involved, up to a maximum of Kshs. 1 million.

Offence – Failure to pay Stamp Duty.

Penalty – Additional 5% of the payable duty for every quarter, from the date of the Instrument.

Offence – failure to pay Excise Duty or VAT.

Penalty – whichever is greater of, 5% of the amount of the tax due or Ksh. 10,000.

Offence – Failure to pay tax on due date.

Penalty – Additional 20% of tax involved is charged.

Offence – Failure to file annual returns by the due date.

Penalty – Additional tax equal to 5% of the normal tax, or Ksh. 10,000.

Offence – KRA PIN-related offense.

Penalty – Ksh. 2,000 per offence.

About the Author

Sande Kennedy is the founder and Editor in Chief of SandeKennedy.com & Kenyans247.com He is a Kenyan-based Internetprenuer,blogger Political Activist & informer who has an interest in politics, governance, corporate-fraud and human-interest. Kindly drop me a note if you feel aggrieved on any matter that you would want to be highlighted  WhatsApp: +254791890826 Read More about me here