This is what main contractors need to know before executing their projects

Section 54 (1) of the Tax Administration Act, Cap 438 (R.E 2023) requires entities engaged in the extractive and construction industry to disclose names of person contracted or subcontracted for carrying out the business within 30 days from the date of executing the contract.

Whoever fails to comply with this section shall be liable to a fine not exceeding 25% of the quantum payable under the project or a fine of not exceeding 4000 currency points whichever is greater.

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The penalties under Section 54(1) are no joke, and keeping track of subcontractor names within that 30-day window can get messy fast. When you're setting up the legal side of things for a project, I usually compare company formation packages to make sure the entity structure handles this reporting cleanly from day one.