pops wrote:i am really frustrated, i have built up my shop over the last 10 years through sheer hard work and sweat and today i had to part with kshs 35k to a kra inspector for a 15 minute compliance check. with the current economy it takes me over a month to earn the 35k at times and this thief made it in no time! my fault? apparently my etr machine use was not proper! i issue a etr with all sales and keep z reports properly because i fear kra people. but after the kra guy checked everything and could not find a fault he told me to give some tkk and he would overlook things. i told him that nothing doing my business was comlpliant and i would not pay a single cent as it is theft and i cant afford it! in response he removed a "intention to prosecute" kra form, and filled it saying i had contravened section 7, paragraph 6 of vat act and would need to appear for a hearing next week at kra offices. he said o was not issuing proper etr receipts and the fine for my offense was 500k and it was my choice to give him 50k or pay full fine. after much consultation with my fellow shop owners i was advised to negotiate and pay otherwise it could become a big thing as this people have powers and they can gang up at me at hearing. i negotiated payment to 35k but it really pained me to give it to him. it was my hard work for 2 months. please advise if there is anything we can do to prevent this extortion from kra?
Im not implying that harassment by KRA officers does not exist but, you might be a victim of fake officials. Section 7 paragraph 6 does not exist.
For example,at Changamwe(Mombasa) there are reports of two men harassing traders and purpoting to be KRA officials.
Also note that 500,000 is the maximum fine & not the stipulated fine
LEGAL NOTICE NO. 110 9. Any person who fails to comply with these Regulations shall be guilty of an
offence and shall be liable to a fine not exceeding five hundred thousand shillings or
to imprisonment for a term not exceeding three years or to both.
SECTION 7, VAT ACT7. (1) The Minister may, by order published in the Gazette –
(a) amend the First Schedule by increasing or decreasing any of the
rates of tax by an amount not exceeding twenty five per cent of the
rate set out therein; or
(b) amend, vary or replace the Sixth and Seventh Schedules.
(2) Every order made under subsection (1) shall be laid before the
National Assembly without unreasonable delay, and unless a resolution
approving the order is passed by the National Assembly within twenty days of
the day on which the National Assembly next sits after the order is so laid, it
shall thenceforth be void, but without prejudice to anything previously done
thereunder.
END