Kenya Revenue Authority (KRA) has announced new fines that will affect individuals who default filing their annual tax returns.
Speaking to Kenyans.co.ke, an official at the authority confirmed that the fine for not filing individual annual returns has been lowered to Kshs 2,000 from the previous Kshs 20,000.
"This is effective for those currently filing their returns and will be applicable going forward," the official stated.
Companies that default filing their tax returns will have to part with a penalty of Ksh 10,000.
However, the official noted that the previously accrued fines including for the June 2018 filing remain.
The Ksh 2,000 fine is in effect to the Finance Act 2018 applicable to those who submit their late returns later that 30th June 2018.
In some cases, tax defaulters can apply for waiver at their tax station for consideration and possible approval.
Since the KRA system automatically imposes penalties to late filers, individuals can liaise with their Tax Station for a payment plan to pay accrued penalties in installments.
Failure to file returns with the tax agency leads to compliance issues which may see individuals barred from accessing various government services including tenders.
The integration of iTax with Integrated Financial Management Information System (IFMIS)-the government payment system- by the Treasury has made 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.
