KRA warns false tax filing threatening a fine to cluprits

Kenya Revenue Authority (KRA) has warned individuals against filing false tax returns announcing a Sh100, 000 fine.

This follows as the State intensifies the fight against dodgers.

This is according to the Finance Bill that was presented before Parliament that seeks to review a number of taxation laws.

The penalties for the information breach will also apply to employers and business partners.

They will which also carry a three-year jail term.

If approved by Parliament the penalties will take effect from July 1.

This, coming at a time taxpayers are racing to file their tax returns ahead of the June 30 deadline.

The proposals come months after the KRA rolled out a voluntary tax disclosure programme where taxpayers with arrears for the past five years are to get full or partial relief on penalties and interest on the undisclosed taxes.

The ruling made in February last year allows the KRA access to their records, computers and mobile phones.

More than 4.4 million taxpayers filed their returns in the year to June 2020 and the KRA has targeted 5.5 million for the period ending June.

The amendments also propose a Sh1 million fine for financial institutions, including banks, insurance and investment firms, that the KRA relies on for records on tax compliance.

Previously, the Kenya Revenue Authority (KRA) appealed a court order that temporarily barred it from collecting minimum tax from businesses.

Leave a Comment

Your email address will not be published. Required fields are marked *