Penalties for Not Filing 2018 Tax Returns on KRA's iTax

  • The deadline for filing tax returns with the Kenya Revenue Authority (KRA) at the end of June often sees Kenyans do a last minute rush to comply and at times some miss.

    However, on top of the Ksh20,000 fine that those who default will face, failure to file returns may cost you a lot more including employment and business.

    According to regulations by the tax collector, on top of attracting penalties, non-filers will be denied a Tax Compliant Certificate (TCC) - the taxman's equivalent of a Certificate of Good Conduct issued by the Directorate of Criminal Investigations (DCI).

    [caption caption="Citizens seeking services from an iTax centre"][/caption]

    TCC has in the recent days become a prerequisite requirement for many employers before hiring to avoid inheriting employees with tax arrears.

    Besides, the certificate is very crucial especially for companies applying for tenders with the government agencies including county government tenders.

    The integration of iTax with Integrated Financial Management Information System (IFMIS)-the government payment system- by the Treasury will make it hard for defaulters to get away with the arrears.

    KRA also synchronizes and reconciles individual tax returns with employer submissions and those of business suppliers to catch up with defaulters.

    According to KRA guidelines, non-filers risk a penalty of Ksh 20,000 or five percent of the tax due whichever is the higher and additional interest of 2 percent per month compounded.

    Failure to file tax returns also means one cannot access service from KRA and other government agencies including registration of business entities.

    Assuming public office either through nomination or election also requires tax compliance before one is cleared by the IEBC.

    [caption caption="Kenyans filing tax returns at Times Tower"][/caption]

    The tax body aims to collect Ksh1.5 trillion for the Treasury in the financial year ending this month with the tax filing services through the iTax portal as well as 38 service centres and 51 KRA Huduma centres countrywide.