DOMESTIC TAX DEPARTMENT

Public Notice No. 51


COMPUTATION OF V.A.T. ADDITIONAL TAX PENALTIES

Kenya Revenue Authority wishes to remind taxpayers that under Section 15 of the VAT Act, any amount of tax that remains unpaid after the due date attracts an additional tax of 2% per month at a compounded rate.

Taxpayers making payments for previously unpaid, under-declared or tax submitted late are required to compute and pay the penalties to avoid further accumulation of the same. The table below has been provided to ease computation.

Where a return has not been submitted or was submitted late, a default fine of Kshs. 10,000/= or 5% of the amount due whichever is the higher is levied for each month in default.

Taxpayers applying for special waiver of penalties (amnesty) which is expiring on 31st January 2005 are required to tabulate additional tax and default fines in their waiver applications.


[ Computation Table ]


COMMISSIONER OF VAT

January 2005

 

 
 
 
 
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