Kenyans risk ‘serious consequences’ for failing to file tax returns Kenyans risk ‘serious consequences’ for failing to file tax returns

Kenyans risk ‘serious consequences’ for failing to file tax returns
12 Jul 2018

Kenyans are being warned that failing to file their tax returns could lead to serious consequences. 

According to Kenyans.co, non-filers will be denied a Tax Compliant Certificate (TCC), which is now a prerequisite for many employers when hiring to avoid taking on employees with tax arrears. It is also important for companies that apply for tenders with government agencies, including county government tenders.

But the government believes that the Treasury’s integration of its iTax applications with new payment software called the Integrated Financial Management System (IFMIS) will make it harder for defaulters to get away with not paying. The Kenya Revenue Authority (KRA) also synchronises and reconciles individual tax returns with employer submissions and those of business suppliers in order to detect defaulters.

Non-filers risk a penalty of KSh20,000 (US$199) or 5% of the tax due, whichever is higher, along with additional compound interest of 2% per month. Defaulters will also not be allowed to access KRA services or those of other government agencies, and will be prevented from registering new businesses.

 Emma Woollacott

Emma Woollacott is a freelance business journalist. Her work has appeared in a wide range of publications, including the Guardian, the Times, Forbes and the BBC.

Kenyans are being warned that failing to file their tax returns could lead to serious consequences. 

According to Kenyans.co, non-filers will be denied a Tax Compliant Certificate (TCC), which is now a prerequisite for many employers when hiring to avoid taking on employees with tax arrears. It is also important for companies that apply for tenders with government agencies, including county government tenders.

But the government believes that the Treasury’s integration of its iTax applications with new payment software called the Integrated Financial Management System (IFMIS) will make it harder for defaulters to get away with not paying. The Kenya Revenue Authority (KRA) also synchronises and reconciles individual tax returns with employer submissions and those of business suppliers in order to detect defaulters.

Non-filers risk a penalty of KSh20,000 (US$199) or 5% of the tax due, whichever is higher, along with additional compound interest of 2% per month. Defaulters will also not be allowed to access KRA services or those of other government agencies, and will be prevented from registering new businesses.

 Emma Woollacott

Emma Woollacott is a freelance business journalist. Her work has appeared in a wide range of publications, including the Guardian, the Times, Forbes and the BBC.

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