Penalties Charged on Tax Offences
Every holder of a Kra Pin is required to file and submit the returns filed to the Kenya Revenue Authority and failure to do so attracts the following penalties and interests.
They include but not limited to the following;
Failure to deduct PAYE, account for it or to submit a certificate upon request attracts a penalty of 25% of the amount of the tax involved or Ksh. 10,000 whichever is higher.
Failure to deduct or pay Withholding Tax attracts a penalty of 10% of the total tax involved, up to a maximum of Kshs. 1 million.
Failure to pay Stamp Duty attracts additional 5% of the payable duty for every quarter, from the date of the Instrument.
Failure to pay Excise Duty or VAT attracts a penalty of 5% of the amount of the tax due or Ksh. 10,000 whichever is higher.
Failure to pay tax on due date attracts additional 20% penalty of tax involved.
Failure to file annual returns by the due date attracts additional tax equal to 5% of the normal tax, or Ksh. 20,000 whichever is higher.
KRA PIN-related offense attracts a penalty of Ksh. 2,000 per offence.
NB: The a bove penalties are subject to change from time to time.
By Omondi Jr Email: email@example.com