What Penalties are Charged on Tax Offences?
Tax offences can attract punitive penalties and interest.
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.