File & Pay
Offences & Penalties
Tax offences can attract punitive penalties and interest. These include:
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 remit Withholding Tax.
Penalty - 10% of the amount of the tax involved, up to a maximum of Kshs. 1 million.
Offence - failure to remit 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 - 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 in for Non-Individual Taxpayers.
