Section 88

Penalty in relation to fraudulent claim for refund 

A person who fraudulently makes a claim for a refund of tax shall be liable to pay a penalty of an amount equal to two times the amount of the claim.

(88A)*-Penalties for noncompliance with common reporting standard obligations. (Finance Act 2021- wef-01July2021*)

(1) A person who makes a false statement or omits any information required to be included in an information return under section 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 years or to both unless, in the case of information required in respect of another person, a reasonable effort was made by the person to obtain the information from that other person.

(2) 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 failure.

(3) A person who fails to comply with a duty or obligation under section 6B shall be liable, where no other penalty is prescribed, to a penalty of twenty thousand shillings, and twenty thousand shillings for each day during which non-compliance continues for a period not exceeding sixty days.

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