Section 14, The Finance Act, 2016

The Income Tax Act, 2000 is amended by insertingimmediately after section 174 the following new sections– (1) “174A (1) The Commissioner-General shall issue to a taxpayer who has opted under subsection (2) of section 4 to be taxed under the Small and Micro Taxpayer Regime a compliance certificate if– (a) the taxpayer has filed a return of income in accordance with subsection (3) of section 97; and (b) paid tax due and payable in respect of that return under Part XIV. (2) A taxpayer issued with a compliance certificate under subsection (1) must immediately display, or affix, the certificate in a public and conspicuous place in their business premises”. 174B. (1) Subject to subsection (2), a taxpayer who, without reasonable excuse, fails to display or affix a compliance certificate as required by subsection (2) of section 174A is liable to a penalty of Le300,000 and for each day after notice of failure to display a penalty of Le100,000 would be levied. (3) The maximum penalty that is payable under subsection (1) is Le 1,000,000.” (4) A taxpayer who fails to display or affix a compliance certificate within seven days of its issue under section 174A commits an offence and is liable, on conviction, to a fine of Le 5,000,000".