Did you know you may be
in a risk of penalties.
Check yourself against
the following list of kra Obligations.
Offenses and Penalties
All registered taxpayers are required by Law
to adhere to the above-mentioned obligations but as a measure to enforce and
enhance compliance, the VAT Act spells out certain offences and respective
penalties.
These include: -
1. Failure to register
– fine not exceeding Kshs.20, 000 or imprisonment for a term not exceeding six months or both
2. Enforced
registration – default penalty of Kshs. 100,000
3. Failure to submit a
return on or before the due date or submitting a payment return without paying
the tax due – default penalty of Kshs.10, 000 or five percent of the tax due
whichever is the higher and additional interest of 2% per month compounded.
4. Failure to keep
proper records – a default penalty of between Kshs.10, 000 to Kshs.200, 000
5 Fraudulent
Accounting – a fine not exceeding Kshs.400, 000 or double the tax evaded
whichever is greater or imprisonment for a term not exceeding three (3) years
or both.
6. Failure to issue a
Tax Invoice – an automatic penalty of not less than Kshs.10, 000 but not
exceeding Kshs.100,000/=.
7. Hindrance or
obstruction of authorized officers
8. Uttering false statements
9. Charging tax when
not registered – tax shown on such invoice is due to the Commissioner within
seven (7) days.
10. Failure to display
a certificate of registration – a default penalty of Kshs.20, 000 and a fine
not exceeding Kshs.200, 000 or imprisonment for a term not exceeding two (2)
years or both.
11. Failure to comply with VAT regulations
12. Failure to pay tax
and late payment
Note: For offences,
which no specific penalty is provided, a general penalty of a fine not is
exceeding Kshs.500, 000 or imprisonment for a term not exceeding three (3)
years or to both is applicable.
