Understanding the Process and Protecting Your Business

Disagreements with the Kenya Revenue Authority (KRA) may arise during audits, compliance reviews, or tax assessments. Understanding the dispute resolution process early helps businesses respond appropriately, avoid unnecessary penalties, and minimize operational disruption.

We guide organizations through each stage of the tax dispute process, ensuring structured responses, professional representation, and practical resolution strategies.

How the Tax Dispute Process Works

1. Issuance of Assessment or Demand Notice

The process typically begins when KRA issues a tax assessment, additional tax demand, or penalty notice following an audit or review. The assessment outlines the authority’s position and the amount claimed.

At this stage, careful review of the assessment is critical to determine whether the position is accurate or requires objection.

2. Filing a Notice of Objection

If a business disagrees with the assessment, a Notice of Objection may be filed through the iTax portal within the statutory timeline, typically within thirty days. Supporting documentation must be submitted to substantiate the position taken.

Timely filing and proper documentation are essential to preserving your right to challenge the assessment.

3. Review by KRA

Following submission, KRA reviews the objection and may accept it, amend the assessment, or confirm the original position. Additional clarification or documentation may be requested during this stage.

Professional engagement during this review phase can significantly influence the outcome.

4. Alternative Dispute Resolution (ADR)

In many cases, disputes can be resolved through Alternative Dispute Resolution. ADR provides a structured negotiation process that allows both parties to work toward a mutually agreed settlement without formal court proceedings.

This approach often results in faster and more practical resolutions.

5. Tax Appeals Tribunal (TAT)

If the matter remains unresolved, the dispute may be escalated to the Tax Appeals Tribunal. At this stage, the case is formally heard and determined in accordance with tax law.

Proper preparation, documentation, and representation become especially important during tribunal proceedings.