1. Amendments to the East African Excise Management Act
The East African Excise Management Act is amended—
by substituting for section 56A the following— “56A. (1) If any excise duty is not paid on or before the due date, the licensee shall be liable to pay a penal tax on the tax due at a rate of two percent for the period the return is outstanding. (2) The penal tax under subsection (1) shall be treated as tax of the same nature as the tax to which it relates and shall be payable as that tax”;
in the Fourth Schedule by inserting immediately after paragraph 5 the following:
“6(1) Notwithstanding anything in this Act, if the Commissioner General is satisfied that an arrangement has been entered into or carried out where— (a) a person has obtained a tax benefit in connection with the arrangement; and (b) having regard to the substance of the arrangement, it would be concluded that the person, or one of the persons, who entered into or carried out the scheme did so for the sole or dominant purpose of enabling the person to obtain the tax benefit,
the Commissioner-General may determine the liability of the person who has obtained the tax benefit as if the scheme had not been entered into or carried out, or in a manner as in the circumstances the Commissioner-General considers appropriate for the prevention or reduction of the tax benefit. (2) In this paragraph— “arrangement” includes any agreement, promise, or undertaking whether express or implied and whether or not enforceable, or intended to be enforceable, by legal proceedings, and any plan, proposal, course of action, or course of conduct; “tax benefit” includes— (a) a reduction in the liability of any person to pay tax; or (b) an increase in the entitlement of a person to a credit or refund; and (c) any other avoidance or postponement of liability for the payment of tax.”.
Section analysis Source linked
This section supplies the definitions or statutory meaning governing “Amendments to the East African Excise Management Act”.
“The East African Excise Management Act is amended—”
Use this definition when interpreting other provisions that employ the language addressed by “Amendments to the East African Excise Management Act”.
Operative requirements extracted from the consolidated text.
- (a) by substituting for section 56A the following— “56A. (1) If any excise duty is not paid on or before the due date, the licensee shall be liable to pay a penal tax on the tax due at a rate of two percent for the period the return is outstanding. (2) The penal tax under subsection (1) shall be treated as tax of the same nature as the tax to which it relates and shall be payable as that tax”;
- (b) in the Fourth Schedule by inserting immediately after paragraph 5 the following:
Express propositions in source-matched passages from judgments citing this section.
No judgment in the current Wakilii corpus expressly cites this section. Bare rule-number references are not assigned where the Order cannot be verified.
No express internal or cross-Act reference appears in this section.
No section-specific amendment note or instrument-level amendment history appears in this consolidation.