Tuesday, July 16, 2019- Kenyans who did not file their returns in time, should be worried, after the Kenya Revenue Authority (KRA) threatened to deduct non-tax return penalties from their salaries.

The law requires anyone with a PIN to file their annual returns irrespective of their employment status.

Over 400,000 people failed to file their tax returns by June 30 and the Taxman has now announced that individuals who failed to meet the deadline face a Sh2,000 fine or five per cent of the tax payable in the year under review, or whichever is higher.

“Please make payment of Sh2,000 within 15 days ending 30 July failure to which attracts collection enforcement measures,” KRA said in notices to some of those in breach.

The Tax Procedures Act of 2015 empowers KRA to order employers to deduct the penalties and tax dues from worker’s salary.

“Under subsection (2) requires an agent to deduct a specified amount from a payment of a salary, wages or other similar remuneration payable at fixed intervals to the taxpayer,” says the Act.

“The amount required to be deducted by an agent from each payment shall not exceed twenty per cent of the amount of each payment of salary, wages or other remuneration (after the payment of income tax).”

The enforcement measures could include PIN deactivation, which blocks individuals from processing transactions that require an active number like salary and supplies payments.

The Kenyan DAILY POST.

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