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Penalties for non-payment of taxes

Penalties for non-payment of taxes

Last Updated: 17 January, 2018 - Print

                               

Penalties for non-payment of taxes

Failure to remit various taxes attracts different penalties and interests depending on the nature of the offence and the type of tax prejudiced. Listed below are the offences against some domestic taxes and their corresponding penalties.

Offence Type

Tax Type

Penalties

Late submission of return

Corporate

 

Company

K200,000.000 covered under Section 112 (3) of the Taxation Act

Individual

 K50,000.00 covered under Section 112 (3) of the Taxation Act

 

Pay As You Earn (PAYE)

 20 percent for the first month plus 5 percent for any additional month. Regulation 10 (1&2)

 

Withholding

Tax

20 percent Regulation of the un-deducted or/and unremitted amount.

 

Fringe

Benefit Tax

20 percent of Fringe Benefit Tax due (Regulation 8)

 

Value Added Tax

(VAT)

K20, 000.00 first day after due date and K1, 000.00 each additional day the return remains un-submitted. Note that tax period is one month; therefore each month will attract K20, 000.00 in that order and 15 percent interest on the amount due plus additional 5 percent each month the amount remains unpaid. Section 38 (1)

 

Turn Over

Tax (TOT)

Penalty of K5, 000.00 first day and K250.00 each day the return remains un-submitted. 20 percent interest of the amount due plus 5 percent any additional month.

 

Provisional Tax

Insufficient payment of provisional tax. 30 percent if less than 50 percent total provision is paid, 25 percent if more than 50 percent total provision is paid but not less than 90 percent (Section 84E)

Failure to register

Value Added Tax

K100, 000.00 where it is reckless and K20, 000.00 for any other reason.






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