KRA Tax Audit Representation in Kenya : Paying taxes is beneficial to both the government and the taxpayer. Taxes are the backbone of any economy, serving economic, fiscal, social, and legal purposes that benefit both parties.
Both the government and the taxpayer need to play their part to ensure taxes are paid correctly and on time. The Kenya Revenue Authority (KRA) administers taxes in Kenya, making sure that every eligible taxpayer fulfills their tax obligation. If the tax authority has any reason to believe the taxpayer isn’t paying taxes correctly, they can launch an investigation. This investigation is known as a tax audit.
Tax audits are crucial. They maintain the integrity of the tax system by ensuring the accuracy of returns, among other measures to promote tax compliance. We’ve previously discussed how to handle a KRA tax audit in Kenya. In this post, we want to focus on KRA tax audit representation in Kenya. Do you need legal or professional representation during a KRA tax audit? What are the benefits? Let’s get into it.
Why You Need KRA Tax Audit Representation in Kenya
The Kenyan tax laws allow taxpayers to appoint a legal tax consultant or a tax agent to represent them during a KRA tax audit. This professional helps a taxpayer navigate the audit and the subsequent tax dispute if the matter escalates. While it’s not mandatory to appoint a KRA tax agent or consultant to represent you in a tax audit, it’s highly recommended. Here’s why you need KRA tax audit representation in Kenya:
- Complex Tax Laws: KRA tax audits are governed by complex tax laws such as the Tax Procedures Act. These laws are always changing, and the regular taxpayer may not be aware of these changes. A professional tax consultant or tax agent keeps up with these changes as part of their job. They understand the complex tax laws and are best suited to handle a tax audit.
- Protects Your Rights: You have specific rights as a taxpayer that ensure fairness during tax administration. You may be unaware of these rights, and KRA may take advantage once they realize you lack any legal representation. A legal representative helps protect these rights.
- Professionalism: Unless you’ve handled a tax audit before, you have no idea how to navigate it like a pro. There will be a lot of correspondence and paperwork between you and KRA. A tax consultant or agent ensures effective communication, which promotes cooperation. Poor communication raises red flags and makes things worse.
- Preparation, Review, and Organization of Required Documents: When a KRA tax audit takes off, you’re required to submit certain documents as part of the process. A professional tax consultant knows the ins and outs of these tax audits. They will prepare, review, and organize the required documents to identify potential exposures and ensure they are complete.
- Strategy: A professional tax agent looks at your tax audit case objectively, as opposed to your emotional perspective. While you’re thinking that KRA is being unfair to you, the expert is looking at the triggers and the way forward. They will help you come up with a winning strategy to best handle the tax audit.
Expert KRA Audit Representation in Kenya- Gichuri & Partners
Are you looking for a professional tax consultant who understands KRA audit procedures, enforcement practices, and the Kenyan tax laws? Gichuri & Partners offers expert KRA audit representation in Kenya. We help taxpayers of all kinds, including individuals, small businesses, and large companies, to navigate the tax audit process with KRA.
We act as your authorized representative throughout the audit process, including initial assessment, correspondence with KRA, and post-audit engagements like ADR and litigation. Here is what we do as your appointed KRA tax audit representation in Kenya:
- Manage all correspondence with KRA.
- Respond to tax audit queries on your behalf.
- Respond to all queries accurately, lawfully, and on time.
- Protect your rights and interests by ensuring all audit findings are based on facts, proper interpretation of tax laws, and proper documentation.
- Review your tax position before submitting documents to KRA.
- Identifying potential exposure and advising on the best way forward to mitigate possible risks.
- Provide clarity on the scope of the audit and ensure all engagements with KRA stay within the legal framework.
Throughout the years, we’ve emerged as a reliable KRA tax audit representative in Kenya. We support individual taxpayers, SMEs, startups, and corporations across the country.
Type of KRA Tax Audits We Represent
We represent clients across all major categories of tax audits in Kenya. These include:
- Income Tax Audits: We represent both individual and non-individual taxpayers during income tax audits, like declared income reviews, capital allowances, and allowable expenses, as well as tax returns and financial statement reconciliations.
- PAYE and Employment Tax Audits: Are you an employer facing a PAYE and employment tax audit? We help employers review payroll records, staff benefits, statutory deductions, and overall compliance with employment tax obligations.
- VAT Tax Audits: VAT Tax audits entail input and output VAT verification, zero-rated and exempt supplies confirmation, invoicing, and other compliance issues.
- Withholding Tax Audits: Triggers like failure to deduct withholding tax, remittance, and incorrect documentation can lead to a withholding tax audit. We will represent you throughout the audit to ensure proper application of rates and a positive outcome.
Factors to Consider When Choosing KRA Tax Audit Representation in Kenya
Consider the following when selecting the best KRA tax audit representative for your tax audit:
- KRA tax audit experience: Choose a tax consultant with specific audit experience, not just general tax compliance work like filing returns.
- Vast knowledge of the Kenyan tax laws, like the Tax Procedures Act, VAT Act, and the Income Tax Act.
- Possesses a strategic approach to audit risk management.
- Proven track record in tax audit management, tax objections, and tax dispute resolution.
Choosing the right representative will affect the outcome of your tax audit. Gichuri & Partners is a tried and tested KRA tax audit service in Kenya. We bring a decade of experience, a strategic approach, and an impeccable understanding of the ever-changing Kenyan tax laws.
Get Professional KRA Tax Audit Representation from Gichuri & Partners
Have you received a Notice of Audit from KRA? Don’t panic. We will support you throughout the entire process, handle all correspondence with the tax authority on your behalf, and work together to achieve a favorable outcome. Contact us today for a free consultation.
