Section 81

Penalties relating to registration or licensing 

(1) Subject to subsections (3) and (4), a person who fails to apply for registration as required under a tax law without reasonable excuse shall be liable to a penalty equal to one hundred thousand shillings for every month or part of a month for the period—

• (a) commencing from the month the person was first required to apply for registration; and 
• (b) ending on the month immediately preceding the month the person submits an application for registration or the person is registered by the Commissioner on the Commissioner’s own motion. 

(2) Subject to subsections (3) and (4), a person who fails to apply for deregistration or cancellation of registration as required under a tax law without reasonable excuse shall be liable to a penalty equal to one hundred thousand shillings for every month or part of a month for the period—

• (a) commencing from the month the person was first required to apply for deregistration or cancellation of registration; and 
• (b) ending on the month immediately preceding the month the person submits an application for deregistration or cancellation of registration, or the person is deregistered or has their registration cancelled by the Commissioner on the Commissioner’s own motion. 

(3) A penalty imposed under subsection (1) or (2) shall not exceed one million shillings.

(4) When a tax law, other than this Act, provides for registration, deregistration or cancellation of registration, this section shall apply only if that tax law does not impose an administrative penalty for failing to apply for registration, deregistration or cancellation of registration, as the case may.

(5) In this section, a reference to registration under a tax law includes licensing under a tax law.

Next