Understanding the Notice of Assessment: Key to Navigating Tax Disputes

The crucial first step of any tax dispute with the Kenya Revenue Authority (KRA) is the notice of assessment. This phase is pivotal for taxpayers, as it sets the stage for all subsequent interactions with the KRA. However, it is also fraught with potential pitfalls that can quickly escalate into significant liabilities if not handled meticulously. 

The Critical Role of the Notice of Assessment

A notice of assessment is the official document issued by the KRA detailing the tax amount a taxpayer is deemed to owe. This notice marks the formal commencement of a tax dispute under the Tax Procedures Act 2015. Receiving a notice of assessment should prompt immediate action. 

Importance of Diligent Response

Responding diligently to a notice of assessment cannot be overstated. This response phase is not merely procedural; it is a strategic defense against potential tax liabilities. An objection must be lodged within 30 days of the notice, clearly stating the grounds of objection, the specific amendments sought, and the reasons for these amendments. It is imperative that the taxpayer pays any undisputed tax amounts and submits all relevant documents along with the objection. This comprehensive and timely response lays a strong foundation for any subsequent dispute resolution processes. 

Requirements for a Valid Objection

For an objection to be considered valid by the KRA, it must meet several critical requirements. Firstly, the objection notice must articulate the taxpayer’s grounds of objection with precision, including specific amendments and supporting reasons. Secondly, any tax not in dispute must be paid before lodging the objection, or an extension for payment must be secured. Lastly, all relevant documentation supporting the objection must be submitted to substantiate the taxpayer's claims. The Commissioner is obliged to respond to the objection within 60 days, either amending the assessment or maintaining the original decision. 


Navigating the complexities of tax disputes with the KRA requires a proactive and detailed approach, starting with the notice of assessment. At RWK & Associates, we emphasize the importance of a well-prepared and timely response to safeguard against unnecessary tax liabilities. By ensuring that objections are comprehensive, precise, and supported by all necessary documentation, taxpayers can significantly enhance their chances of a favorable outcome. Should you require assistance in managing your tax disputes, our team of experts is here to guide you through each step of the process, ensuring compliance and advocacy at every stage.



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