VAT offences and penalties

Question 1

Penalty for Late filing of VAT return

Answer 1

KES 10,000 or 5% of tax due whichever is higher

Question 2

late payment of VAT

Answer 2

5% of tax due

1% interest p.m

Question 3

not keeping proper books, records?

Answer 3

higher of:
10% of tax payable
if no tax payable, KES 100,000

Question 4

failure to register or deregister
wrongful deregistration
failure to display the certificate of registration
failure to inform commissioner of change

Answer 4

KES 200,000
or
imprisonment for a term not exceeding 2 years or both

Question 5

General Penalty

Answer 5

fine not exceeding KES 1,000,000
or
imprisonment not exceeding 3 years or both

Question 6

Tax avoidance

Answer 6

2X the amount of tax avoided

Question 7

unauthorised access/improper use of tax computerised system

Answer 7

2 year imprisonment
KES 400,000 fine
both

Company - fine of KES 1,000,000

Question 8

interferance with tax computerised system

Answer 8

3 years imprisonment
KES 800,000
both