Have you ever had an uninvited encounter with the Kenya Revenue Authority (KRA)? How was it? Was it pleasant or scary? Would you wish to have consequent encounters with KRA? The truth of the matter is that many Kenyans would not voluntarily go to KRA but only do so when they have to, such as when they need services like motor vehicle transfers or to collect logbooks. But generally, they keep a wide berth between themselves and KRA, and for a good reason. This guide delves into how to deal with KRA in Kenya, where necessary.

Why Do People Avoid Dealing With KRA?

For the most part, people who have met with the officials of the Kenya Revenue Authority speak very negatively about the encounter. The rest of the Kenyans who hear these stories, including when they have been spiced negatively, tend to stay away from these officials for fear that they, too, might have negative experiences.

However, the stories of these encounters, whether rightly or wrongly told, should not scare you if you have the information on how to deal with your tax matters. This information is what we will give below to demystify the myth surrounding KRA and its mandates, and make you well-informed and confident on how to deal with KRA in Kenya accordingly.

When Can KRA Come A-Calling?

Most people, especially those in formal employment as employees, have not had to deal with KRA. However, businesspeople are likely to meet with the Revenue officials in various ways.

These officials can write to you demanding tax, tax arrears, penalties, and interest on taxes, etc. These demands are based broadly on the following issues:

There are also many reasons KRA can communicate with you that are not covered in our list.

How Can KRA Contact You?

Where the tax officials believe that you owe tax, tax arrears, penalties and interest in taxes, and other such monies, they can communicate to you in writing or physically come to your premises. Physical visits are not as common as written communication.

But regardless of the form of encounter, it is safe to say that these experiences are often uncomfortable for the taxpayer. It is even worse when you do not know how to respond. Therefore, it is important to know how to deal with KRA in Kenya.

How to Deal With KRA Correctly.

If KRA officials make a physical visit to your premises, you should ensure that you get the Authorities’ officials’ identification and certify the same. Given that we already have so many scammers going around under the pretense of being government officials, it’s imperative to be safe.

Once you settle on the identification bit, do not discuss the substantial concerns of the KRA orally. You can listen to what they have to say about their visit and then request them to do written communication that you can also respond to in writing.

When KRA communicates thereafter in writing, it will send you an assessment, an enquiry, a demand Notice, a confirmation that it is carrying out an investigation on you, or any other communication indicating to you what exactly it is doing.

Communication will clearly tell you what the issue is or what is required from you. At this point, you should contact your tax consultant to seek advice on the best way to deal with the issues. Do not ignore any communication, as the consequences may be grave. If the communication is not clear, seek clarification from the source or from a tax conversant person.

What to Do After KRA Contacts You.

If what you have received is an assessment or a demand Notice, your response ought to be an admission or an objection. Should you admit to it, then you have to make the payments in issue or make proposals to KRA on how to settle the admitted amount. If you are objecting to the assessment, the law requires you to make your objection within 30 days, and that objection should be supported by material evidence. Thereafter, the KRA Commissioner will look at your objection and make a decision to allow it or not.

If your objection is not allowed, you can proceed to the Tax Appeals Tribunal, which will deal with your Appeal and make a decision to either allow your appeal or not. Your journey does not end here, though. If you are dissatisfied with the Tax Appeals Tribunal’s decision, you can proceed with an appeal to the High Court.

Given the complexities of tax appeals and the importance of following the correct steps to prevent further penalties, your tax Consultant is therefore important in guiding you on how to deal with KRA at every stage.

When you have all the necessary information on your tax matters, dealing with KRA disputes will feel easy, and you will not panic when KRA comes calling.

Want to Know How To Deal With KRA In Kenya? We Are Here to Help.

Are you now better prepared to deal with KRA? Thanks to our expertise in tax matters in Kenya, we are comfortably able, available, and ready to consult with you at every stage when you have an encounter with KRA.