AVOID PROCRASTINATION

Bolster your tax compliance by filing returns in good time

It saves one from punitive measures that the government has put in place to deter late filing and resultant non-compliance

In Summary

•Given that the government provides enough time to complete this important tax duty, taxpayers should always do it early so that there is also ample time to get Kenya Revenue Authority’s assistance should a need arise.

•A tax compliance certificate is a key Chapter Six requirement when seeking employment, especially in the public sector.

The KRA headquarters at the Times Towers.
The KRA headquarters at the Times Towers.
Image: FILE

When the former CEO of a leading giant telco posited that Kenyans are a peculiar lot, the fetish for the last-minute rush must have been one of the peculiarities in reference.

Irrespective of the timeframe given to complete or honour a certain obligation, some Kenyans will procrastinate only to rush a day to the deadline if not on the due date, perhaps with the hope of a revised deadline.

The brave ones will even demand additional time.

Let’s, for instance, put this in the perspective of tax returns filing whose deadline is in the offing.

With only a month and a few days now to the deadline, to some taxpayers, there is still plenty of time left to honour this tax obligation.

As per the tax laws, annual tax returns should be submitted between January and June, but some taxpayers will still wait for June 29 or 30  to file their tax returns.

By all means, this should never be the case owing to unforeseen inconveniences characterised by any last-minute rush.

Given that the government provides enough time to complete this important tax duty, taxpayers should always do it early so that there is also ample time to get Kenya Revenue Authority’s assistance should a need arise.

Filing of tax returns in time saves one from the punitive measures that the government has put in place to deter late filing and resultant non-compliance.

Late filing or failure to file a tax return altogether attracts a penalty of five per cent of the tax due or Sh2,000, whichever is higher.

In addition to the penalty, non-compliance reduces one’s compliance score which in the long run means that the KRA cannot issue one with the all-important tax compliance certificate.

A tax compliance certificate is a key Chapter Six requirement when seeking employment, especially in the public sector.

It is also a requirement for those aspiring to do business with the government through tenders.

Why then suffer such a penalty over an exercise that has a six-month grace period?

A month to the tax filing deadline might appear like a long time but June 30 is around the corner. Do the right thing now.

 

Dennis Karuri

Kiambu 

 

Edited by Kiilu Damaris