Tuesday, May 9, 2017

KRA raises tax returns filing penalty to Sh20,000

Taxpayers queue to file their returns at the Kenya Revenue Authority's iTax Support Centre in Eldoret last year. FILE PHOTO | NMG Taxpayers queue to file their returns at the Kenya Revenue Authority's iTax Support Centre in Eldoret last year. FILE PHOTO | NMG 

JAMES NGUNJIRI

Summary

    • The KRA on Tuesday said the 2016 annual income tax returns for individuals must be filed on or before June 30.
The taxman has raised the fine for late filing of returns by 20 times, saying the State will now fine taxpayers Sh20,000 up from Sh1,000.
The taxman on Tuesday said the 2016 annual income tax returns for individuals must be filed on or before June 30.
The Kenya Revenue Authority said it is collaborating with employers and membership-based professional bodies to facilitate employees in filing returns ahead of the deadline.
“We are reminding all Kenyans that they are supposed to file Income Tax returns for individuals on or before June 30, 2017,” said Wanja Wang’ondu, KRA acting assistant manager, domestic taxes, Nairobi region.
“We are filing the 2016 Income Tax returns and the penalty for failure to file these returns is Sh20,000 or five per cent of the tax due, whichever is higher.”
Speaking during a KRA iTax forum, Ms Wang’ondu said they have noticed that a large number of employers have already given P9-A forms to staff.
Those who did not file income tax returns for 2015 by June 30, 2016, also have to pay a penalty of Sh1,000.
“If someone want to get a tax compliance certificate today, we won’t issue it until they first pay the penalty for 2016,” said Ms Wang’ondu.
iTax, a web-enabled tax collection system, has simplified the tax processes, shortening time taken to file returns and increase revenue collection.
The system updates the employee and employer ledgers in real-time after filing and sends them notifications whether the returns have been filed successfully or rejected.
According to the taxman, between January 1 and June 8 last year, the iTax platform processed transactions worth Sh280 billion.

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