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The Income Tax (Advance Tax) (Conditions and Procedures) Rules

Legal Notice 52 of 2012

This is the latest version of this Legal Notice.
The Income Tax (Advance Tax) (Conditions and Procedures) Rules
Citation
Legal Notice 52 of 2012
Primary work
Income Tax Act
Date
Language
English
Type
Legal Notice
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LAWS OF KENYA

INCOME TAX ACT

THE INCOME TAX (ADVANCE TAX) (CONDITIONS AND PROCEDURES) RULES

LEGAL NOTICE 52 OF 2012

  • Published in Kenya Gazette Vol. CXIV—No. 52 on 15 June 2012
  • Commenced on 15 June 2012
  1. [Revised by 24th Annual Supplement (Legal Notice 221 of 2023) on 31 December 2022]

1. Citation

The Rules may be cited as Income Tax (Advance Tax)(Conditions and Procedures) Rules.

2. Interpretation

In these Rules, unless the context otherwise requires—"advance tax" means tax payable under section 12A of this Act;"owner of a commercial vehicle" means the registered owner as indicated in the registration certificate issued by the Registrar of motor vehicles.

3. Payment of advance tax

(1)Any person who owns a commercial vehicle shall be liable to pay advance tax.
(2)Advance tax shall be payable for each year of income at the rates specified under paragraph 8 of the Third Schedule to the Act.
(3)Advance tax shall be due and payable to the Commissioner on or before the twentieth day of the first month of the year of income, or in cases of transfer of ownership of the commercial vehicle, before the new owner is registered as such.
(4)The Commissioner shall assess the amount of advance tax payable under these Rules in accordance with paragraph 8 of the Third Schedule to the Act.
(5)A person liable to pay advance tax shall submit to the Commissioner the payment accompanied by the prescribed form.
(6)The Commissioner shall issue, to every person who pays advance tax under these Rules, a receipt which shall be the proof of payment of advance tax.

4. Maintenance of records

Any person who is liable to pay advance tax shall keep records necessary for the determining and ascertaining advance tax, including registration certificates, vehicle inspection reports, previous advance tax receipts and such other document or record as the Commissioner may from time to time direct.

5. Filing of returns

(1)A person who pays advance tax shall submit to the Commissioner a return of income in accordance with section 52B of the Act.
(2)A person who fails to file a return of income in accordance with paragraph (1) shall be liable to pay additional tax as provided under section 72 of the Act.

6. Licensing and inspection

A Government agency shall for the purposes of the registration or transfer of ownership, licensing or inspection of a commercial vehicle, require the owner of the commercial vehicle to furnish such agency with evidence of payment of advance tax or income tax exemption certificate, where applicable.

7. Dispute in calculation of advance

Any dispute arising from the administration of these Rules relating to the assessment to tax shall be dealt with in accordance with section 84 of the Act.

8. Inspection of records

(1)For purposes of obtaining information necessary for the verification of advance tax paid, the Commissioner may by notice require a person liable to pay advance tax to—
(a)produce all accounts, books of accounts, documents and other records relating to the payment of advance tax in respect of such period as may be specified by the Commissioner;
(b)produce the commercial vehicle or a Vehicle Inspection Report prepared by a recognized Government agency or agent; or
(c)avail themselves for interview at such time and place as may be specified in the notice.
(2)The Commissioner may, upon undertaking an inspection under this rule, demand from the person, based on the information obtained from the inspection—
(a)the tax which appears from the documents and records produced by that person, would have been payable under rule 3 for the period covered by the inspection had that person complied with these Rules; or
(b)the outstanding tax and penalties.

9. Penalties and interest

(1)Any person who fails to pay the advance tax due shall, in addition to the payment of the unpaid tax, be liable to pay a penalty and interest on the unpaid tax in accordance with section 72D and section 94 of this Act respectively.
(2)The provisions of the Act that relate to collection and recovery of tax shall apply for the purposes of collection and recovery of unpaid advance tax.
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History of this document

31 December 2022 this version
15 June 2012
Published in Kenya Gazette 52
Commenced
Read this version