Kenyan taxpayers who file false or incomplete information to the Kenya Revenue Authority (KRA) will be liable to a Ksh100,000 fine.
According to the Finance Bill that is before Parliament, offenders will also be liable to a three-year jail term.
A person who makes a false statement or omits any information required to be included in an information return under 6B shall be liable to a penalty of one hundred thousand shillings for each such false statement or omission to imprisonment for a term not exceeding three yearsreads the Bill in part.
If approved, the Bill will start working from July 1.
Financial institutions including banks, insurance and investment firms will face a Ksh1 million for similar errors.
A reporting financial institution that fails to file an information return or a ‘nil’ return when required under section 6B shall be liable to pay a penalty of one million shillings for each such failureadds the Bill.
KRA rolled out a voluntary tax disclosure programme last month where taxpayers with arrears for the past five years are to get full or partial relief on penalties and interest on undisclosed taxes.
In April, KRA surpassed its monthly collection target, for the fifth time in a row.
The taxman has continued recording outstanding revenue performance collecting Ksh176,656 billion in April against a target of Ksh170,191billion recording a performance rate of 103.8 percent.