Section 13, The Finance Act, 2022

Section 150 of the Income Tax Act 2000 is amended byrepealing and replacing that section with the following new section “150(1)A tax payer who fails to file a return– (a) within 30 days after the due date shall be termed a late filer; (b)after 30 days of the due date shall be termed a non-filer. (2) The following penalties shall apply to a late filer of an annual tax return who files after the due date without good course– (a) large taxpayer -Le50,000,000 (b) medium taxpayer -Le25,000,000 (c) small taxpayer-Le2,500,000 (3) The following penalties shall apply to a late filer of a monthly tax return who files after the due date– (a) large taxpayer -Le10,000,000 (b) medium taxpayer-Le5,000,000 (c) small taxpayer-Le1,000,000 (4) A taxpayer who without good course fails to file an income tax return and any other return required by this Act within the stipulated period shall be liable to the following penalties– (a) large taxpayer -Le100,000,000 (b) medium taxpayer-Le50,000,000 (c) small taxpayer-Le5,000,000 (5)A taxpayer who without reasonable excuse files an income tax return incorrectly stating his chargeable income, shall be liable to a penalty of twenty five percent of the difference between the amount of tax payable for the year of assessment and the amount that would have been payable if the tax payable had been calculated by reference to the incorrect return."