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KRA’s fine for late tax returns up 20 times

By Thuothuo Anthony -Jamhuri News

KRA has raised the fine for late filing of tax returns from Ksh. 1,000 to Ksh. 20,000.

KRA officials said the administration is collaborating with employers to facilitate the process of filing the returns on or before June 30.

The tax man said the penalties have been in the books, having been enacted under the Tax Procedures Act number 29 of 2015 but KRA has previously not implemented them.

“We are reminding all Kenyans that they are supposed to file Income Tax returns for individuals on or before June 30, 2017,” said KRA official Wanja Wang’ondu.

She added that her administration has noticed the effort made by organizations to provide P9-A forms to staff on time.

“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. If someone wants to get a tax compliance certificate today, we won’t issue it until they first pay the penalty for 2016 ”

Ms.Wang’ondu said that those who did not file 2016 tax returns still owe sh.1,000 fine to KRA.

It is now easier to file taxes online through KRA’s platform, iTax, a web-enabled collection system simplifying the process.

The system has been used in the past, and between January 1st and June 8th, 2016, a total of sh. 280 billion was transacted using the platform, which updates ledgers in real-time and sends a notification if the filling was successful.

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