LAWS OF KENYA REFINERY THROUGHPUT TAX ACT CHAPTER 474 Revised Edition 2012  Published by the National Council for Law Reporting with the Authority of the Attorney-General www.kenyalaw.org [Rev.
474 Refinery Throughput Tax CHAPTER 474 REFINERY THROUGHPUT TAX ACT ARRANGEMENT OF SECTIONS Section 1.
Imposition of tax.
Collection of tax.
Prohibition against passing on tax.
Power to enter premises of refinery and inspect documents, etc.
Offences and penalty.
Recovery of tax.
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474 Refinery Throughput Tax CHAPTER 474 REFINERY THROUGHPUT TAX ACT [Date of assent: 16th December, 1982.] [Date of commencement: 1st July, 1982.] An Act of Parliament to impose a tax on refinery throughput and for matters incidental thereto 1.
Short title This Act may be cited as the Refinery Throughput Tax Act.
Interpretation In this Act crude petroleum means petroleum in the liquid state, including condensates; petrochemical means a chemical compound or mixture of compounds manufactured from petroleum or petroleum products; petroleum means a mixture of naturally occurring hydrocarbons and hydrocarbon compounds; refinery means an organization which manufactures from petroleum products partly finished or finished petroleum products or petrochemicals by a refining process; tax means the refinery throughput tax imposed by section 3; user means the person liable to pay refining charges to a refinery.
Imposition of tax (1) There shall be levied and collected a tax, to be known as refinery throughput tax, on all charges made by a refinery in respect of refining crude petroleum, at the rate of fifteen per cent of those charges.
(2) For the purposes of this section payment made to a refinery in lieu of refining charges where refined petroleum is imported shall be deemed to be charges made in respect of refining crude petroleum.
Collection of tax (1) Tax shall become due when refining charges are made to the user and shall be paid by the refinery not later than thirty days after the end of the month in which the tax became due.
(2) Payment of tax shall be made by a refinery in accordance with instructions issued by the Treasury, which instructions need not be published in the Gazette.
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Prohibition against passing on tax Except with the written authority of the Minister a refinery shall not pass to the user the cost of tax payable under this Act.
Exemptions The Minister may by notice in the Gazette exempt from levy of tax on refining charges which relate (a) to any class or consignment of petroleum or petroleum products; or (b) to any part of the refining process.
Power to enter premise of refinery and inspect documents, etc.
(1) A person authorized in writing by the Minister may, on production of his authority if so required, enter upon premises owned or occupied by a refinery and may require any proper officer of the refinery to produce for his inspection all books, documents and records relevant to the levy and collection of tax and may take copies thereof or extracts therefrom.
(2) Any person who obstructs a person authorized under subsection (1) in the exercise of the powers conferred by that subsection or who fails to comply with a requirement made thereunder shall be guilty of an offence and liable to a fine not exceeding ten thousand shillings or imprisonment for a term not exceeding six months, or to both.
Offences and penalty (1) A refinery which fails to pay tax payable in accordance with this Act shall be guilty of an offence and liable, in addition to the tax, to pay a fine not exceeding three times the amount of the tax payable.
(2) Where an offence is committed under subsection (1) every director of the refinery and every officer thereof concerned in its management shall also be guilty of that offence unless he proves that he did not know, and could not reasonably have been expected to know, of the commission of the offence or that he took all reasonable steps to ensure that the offence was not committed.
Recovery of tax Whether or not a prosecution is brought for an offence under this Act any amount of tax payable and not paid in accordance with section 4 shall be a civil debt recoverable summarily by the Government.
Regulations The Minister may make regulations generally for the better carrying out of the purposes of this Act.
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474 Refinery Throughput Tax [Subsidiary] CHAPTER 474 REFINERY THROUGHPUT TAX ACT SUBSIDIARY LEGISLATION List of Subsidiary Legislation Page 1.
Refinery Throughput Tax Exemption.
Refinery Throughput Tax (Exemption) Order, 1994.
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474 Refinery Throughput Tax [Subsidiary] REFINERY THROUGHPUT TAX EXEMPTION [L.N.
40/1991.] In exercise of the powers conferred by section 6 of the Refinery Throughput Tax Act, the Vice-President and Minister for Finance exempts from levy of tax refining charges which relate to refined petroleum products which are subsequently re-exported, provided that the crude oil is imported and refined under customs control and the Kenya Oil Refineries Limited provides the Commissioner of Customs and Excise with full details of (a) the total volume of imported crude oils and the corresponding refined output; (b) the amount for which tax has been remitted to the Treasury; (c) the amount exported; (d) evidence of the export together with the receipt of the foreign exchange in respect of the refining charges rendered by the refinery, and complies with any other conditions that the Commissioner may impose.
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474 Refinery Throughput Tax [Subsidiary] REFINERY THROUGHPUT TAX (EXEMPTION) ORDER, 1994 [L.N.
This Order may be cited as the Refinery Throughput Tax (Exemption) Order, 1994, and shall come into operation on the 1st November, 1994.
There shall be exempted from the tax imposed by section 3(1) of the Act, all charges made by a refinery in respect of the refining of crude petroleum.
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