Offence
|
Penalty
|
Late payment of tax
|
5% of the unpaid amount
|
Late payment interest
|
1% per month – simple interest and final not subject to waiver
|
Late return filing in case of employment income
|
25% of the tax due subject to a minimum of Ksh 10,000
|
Late return filing in case of turnover tax (TOT)
|
Ksh 5,000
|
Late return filing in all other cases
|
5% of the tax due subject to a minimum of Ksh 20,000 for corporate and Ksh 2,000 for individuals.
|
Failure to register with the tax authority
|
Ksh 100,000 for every month the default continues subject to a minimum of KES 1 million.
|
Failure to apply for deregistration
|
Ksh 100,000 for every month the default continues subject to a minimum of KES 1 million.
|
Failure to keep records
|
10% of the tax payable or Ksh 100,000 when no tax is due.
|
Failure to submit documents other than return on due date
|
Ksh 1,000 for each day the default continues subject to a maximum of Ksh 50,000
|
Tax shortfall resulting from false or misleading statements
|
75% of the tax shortfall in case of deliberate falsification and 20% in any other case. This penalty increases by 10% on second offence and by 25% on third and subsequent offences
|
Tax avoidance schemes
|
Double the tax avoided
|
Failure to comply with electronic tax system
|
Ksh 100,000
|
Failure to appear before the Commissioner upon being served with notice to do so
|
Ksh 10,000 in case of individual and Ksh 100,000 for any other case
|
Fraudulent claim of refund
|
Double the amount claimed
|