With the deadline for filing tax returns elapsing on Sunday June 30, 2019, only 2.7 million taxpayers, out of a targeted four million, have filed their returns.
The taxman reports that as of June 23, 1.3 million taxpayers had yet to file their returns and if the transactions are not completed by Sunday, the non-compliant individuals and companies will end up being fined.
According to a news report by the Business Daily, individuals who fail to file their tax returns by Sunday will face a fine of Ksh.20,000 or five per cent of the tax payable in the year under review while those filing for employment income only face a fine of Ksh. 10,000 or 25 per cent of income tax payable in the year under review.
The Business Daily similarly reports that the country’s tax collection target was short by Ksh. 95 billion in the first nine months to March as a result of slowed economic activity and erratic weather that affected the agriculture sector.
In an effort to increase its revenue streams, KRA last month instructed online workers to file their tax returns on time.
According to the taxman, online workers are mandated by law to file and pay taxes, which may include VAT, excise duty and any other obligations required under the business unless income or supply is expressly exempt in the tax law.
“KRA has noted that some taxpayers engage in online business and they do not file returns or pay taxes on the transactions. KRA would like to advise that unless exempted by law, appropriate taxes should be paid,” the tax collector said then.
The Kenya Revenue Authority (KRA) in March said it was targeting four million returns at the end of June.