One of the perks of the Kenyan tax administration is that it lets taxpayers self-assess. But there is a catch! If the Kenya Revenue Authority (KRA) has a reason to believe your self-assessment is erroneous, it will issue a tax assessment. We’ve discussed how to handle a tax assessment before, so we’ll not dwell much on what it is.
The truth of the matter is that receiving a tax assessment from KRA is disruptive. It may halt your business operations, strain the cash flow, brew panic, and even introduce additional tax liabilities. A tax assessment can relate to various forms of tax, including VAT, PAYE, corporate tax, rental income, and withholding tax. One thing matters- how you respond to a KRA tax assessment is critical.
Delayed response, ignoring notices, incomplete documentation, and weak responses can complicate the matter further, a pit you might take forever to recover from. That’s why at Gichuri & Partners, we’ve made it our mission to help businesses and individuals handle KRA tax assessments like pros. Our professional KRA tax assessment services in Kenya entail reviewing assessments, preparing timely responses, challenging disputed liabilities, and managing engagements with KRA on your behalf.
Our KRA Tax Assessment Services
We have clear goals at Gichuri & Partners: to understand the assessment, evaluate exposure, come up with a good response strategy, and guide the matter towards a resolution. Here’s what we do:
1. Review and Risk Analysis
When most taxpayers receive a tax assessment notice from KRA, they panic. Panic mode gets in the way of deeply reviewing the assessment and responding correctly. This is where we come in to help. We conduct a technical review of the assessment to determine whether it’s accurate and which areas require your attention. Our deliverables at this stage include:
- Review of tax assessment and demand letters
- Exposure and liability analysis
- Verification of the assessed figures
- Discrepancies and risk areas identification
- Determination of the way forward- rejection, acceptance, reconciliation, or escalation
2. Tax Reconciliation and Preparation of Supporting Documentation
KRA assessments are never random. They stem from mismatches between filed returns, accounting records, bank transactions, eTIMs data, payroll data, and third-party financial data. The first step after reviewing and validating the tax assessment is reconciliation. We reconcile all relevant records and compile supporting evidence before engaging with KRA. Deliverables here are:
- VAT reconciliation schedules
- PAYE and payroll reconciliation
- Corporate tax reconciliation
- Review of withholding tax
- Rental income tax records reconciliation
- Ledger review and transaction mapping
- Preparation of supporting schedules, working papers, and other documentation
Our job here is to make sure your records support your current tax position.
3. Objection Preparation and Filing
Some taxpayers panic when they receive a tax assessment from KRA. Deep review and objective responses aren’t possible in panic mode. With us, you don’t have to panic-pay additional tax assessments that are incorrect. We prepare a solid objection case based on existing documents where grounds exist. Our deliverables at this stage include:
- Drafting a notice of objection
- Preparing solid grounds for objection
- Writing response letters to KRA queries
- Compiling and indexing evidence
- Onjection submission support
- Follow up with KRA
We ensure your tax objections are professional and supported by adequate documentation.
4. KRA Audit and Assessment Support
KRA will usually order an audit or assessment after a compliance review of your tax records. We provide professional support during this time, including:
- Audit readiness review
- Record organization and cleanup
- Preparation of financial documents
- Preparation of tax schedules
- Audit response support
- Coordination of KRA engagement
The readiness of your tax records and supporting documents plays a key role in KRA audits. Our job is to ensure everything is in order.
5. Negotiation and Resolution Support
KRA disputes don’t always need to end in objection and appeal processes. When necessary, we guide you into negotiation with the tax authority to reach a mutual agreement. With clarification, engagement, and reconciliation, you can save money, time, and resources. Our deliverables here include:
- Professional representation
- Submitting detailed clarifications of your tax position
- Negotiation and tax settlement support
- Resolution planning
6. Tax Appeal and Dispute Resolution Support
If non-adversarial negotiations fail, the next step is to escalate the matter to the Tax Appeals Tribunal (TAT) and higher courts. We provide tax appeal and other dispute resolution support, including:
- Review of the tax appeal documentation
- Preparation of required documents, such as statement of facts, memorandum of appeal, and appeal grounds
- Tax dispute analysis
- Coming up with a winning case strategy.
- Technical advisory support
- Professional representation before the TAT
Our Tax Assessment Process
So what happens when you hire us to represent you in a KRA tax assessment in Kenya? Our process is designed to help you understand the assessment, determine the most appropriate resolution strategy, and organize supporting documents. Our 5-step process involves the following:
- Step #1: Assessment Review: We examine the tax assessment in depth, including the tax head, assessment period, supporting explanations from KRA, and any existing correspondence through mail and iTax.
- Step #2: Documentation and Records Review: We review your tax and financial records to identify what triggered the tax assessment. These include your returns, ledgers, payroll records, invoices, sales receipts, bank statements, and supporting schedules.
- Step #3: Tax Reconciliation and Technical Analysis: To determine whether the assessment is valid or not, we reconcile it against available records. This also lays the foundation for clarification, objection, and further engagement with KRA.
- Step #4: Strategy Development: We recommend the most suitable course of action, based on our technical analysis findings. The options include clarification, negotiation, objection, and appeal in the TAT.
- Representation and Engagement with KRA: Once we’ve agreed on the strategy, we get to work. We provide professional representation and support, including correspondence with KRA, objection preparation, supporting documentation, and follow-up support.
Who We Serve
Our KRA tax assessment services are designed for both individual and non-individual taxpayers. Our clients include:
- Individuals (Employees, Sole Proprietors) handling income, PAYE, and other tax types
- SMEs handling VAT, PAYE, withholding, and corporate taxes
- Importers and traders dealing with customs and excise duty, and other tax types
- Landlords and property investors handling rental income tax assessments
- Employers dealing with payroll and PAYE assessments
- NGOs
- LLCs and other corporate organizations
- Professional service firms like consultants, agencies, and contractors
Why Choose Gichuri & Partners
Businesses and individuals choose us for our:
Specialized Tax Focus
Tax assessments require more than ordinary accounting support. We combine tax compliance, advisory, regulatory interpretation, and dispute resolution knowledge to offer the best one-stop hub for all your tax matters.
Practical and Business-Oriented Tax Advice
Our professional support and recommendations are based on the best possible outcomes, timelines, and risk management. We provide all necessary tax information to help you make informed choices.
End-to-End Support
Have you ever worked with a firm that passed your case around from one department to another? It never ends well, especially if miscommunication occurs in the process. At Gichuri & Partners, we ensure you work with one team from assessment review to dispute resolution.
Confidentiality
We treat tax matters with the confidentiality they deserve, since they affect finances, operations, and reputation. We handle every engagement discreetly and professionally.
Received a Tax Assessment from KRA? Let’s Help You Respond Strategically
A tax assessment doesn’t always mean that the figures are incorrect. The outcome depends on how you review the matter, prepare supporting documents, and respond. Our tax assessment services are geared towards helping you evaluate assessments, reconcile records, prepare objections, and engage KRA with a clear strategy. Have you received a tax assessment from KRA? Talk to us for the best KRA tax assessment support in Kenya.
