Tax Dispute Resolution
Strategic representation in KRA disputes, tax tribunal proceedings, and tax audits. We protect your interests and resolve tax controversies efficiently.
Comprehensive Tax Dispute Services
Tax disputes with the Kenya Revenue Authority can arise from assessments, audits, or compliance reviews. Whether you are facing an additional assessment, a demand for penalties, or a transfer pricing adjustment, our experienced tax lawyers provide strategic counsel and robust representation to protect your financial interests. We handle disputes at every stage -- from informal negotiations with KRA to formal proceedings before the Tax Appeals Tribunal and the High Court of Kenya.
Tax Audit Defence
We represent you during KRA tax audits, managing information requests, reviewing assessments, and ensuring your rights as a taxpayer are upheld throughout the audit process.
KRA Objections
We draft and file formal objections against KRA assessments within the statutory 30-day window, presenting compelling grounds supported by evidence and legal authority.
Tax Appeals Tribunal
Full representation before the Tax Appeals Tribunal, from filing the memorandum of appeal through hearings, evidence presentation, and securing favourable decisions.
Tax Penalties & Interest
We negotiate the reduction or waiver of penalties and interest charges with KRA, leveraging statutory provisions and voluntary disclosure programmes to minimise your liability.
Transfer Pricing Disputes
Expert advice on transfer pricing audits and adjustments by KRA, including documentation reviews, benchmark analyses, and dispute resolution for multinational enterprises operating in Kenya.
Tax Compliance Reviews
Proactive reviews of your tax compliance position to identify risks before KRA does, ensuring correct filing, proper deductions, and documentation to withstand scrutiny.
Navigating the KRA Objection & Appeals Framework
When KRA issues an additional assessment or demands payment, taxpayers have specific statutory rights under the Tax Procedures Act, 2015. The first step is filing a formal objection with the Commissioner within 30 days. This objection must clearly articulate the grounds for disagreement and be supported by documentary evidence.
If the objection is rejected or only partially allowed, taxpayers can escalate the matter to the Tax Appeals Tribunal (TAT) within 30 days. Our team handles the entire process -- drafting comprehensive objections, preparing TAT appeals, presenting evidence, and cross-examining KRA witnesses. For matters involving complex legal questions, we pursue appeals to the High Court and Court of Appeal.
- Formal objection drafting and filing within statutory deadlines
- Evidence gathering and documentation management
- Tax Appeals Tribunal representation and advocacy
- High Court and Court of Appeal tax litigation
Minimising Tax Penalties & Interest
Tax penalties in Kenya can be severe -- late filing penalties, late payment interest, and understatement penalties can quickly exceed the original tax liability. Under the Tax Procedures Act, KRA charges interest at 1% per month on unpaid taxes, and understatement penalties can reach 75% of the understated tax.
We help clients reduce these costs through several strategies: applying for penalty remission under Section 89 of the Tax Procedures Act, negotiating instalment payment arrangements with KRA, and leveraging voluntary disclosure programmes when available. Our approach combines technical tax knowledge with strong negotiation skills to achieve the most favourable outcome.
- Application for remission of penalties under the Tax Procedures Act
- Voluntary disclosure programme participation
- Instalment payment arrangement negotiations
- Amnesty programme applications when available
ADR for Tax Disputes
KRA has embraced Alternative Dispute Resolution (ADR) as a means of resolving tax disputes without the cost and delay of formal tribunal or court proceedings. The ADR framework, facilitated by KRA's ADR unit, allows taxpayers to settle disputes through structured negotiations with KRA officers in a less adversarial environment.
ADR can be initiated at any stage of the dispute -- even after an appeal has been filed with the Tax Appeals Tribunal. Our lawyers guide clients through the ADR process, preparing settlement proposals, presenting the taxpayer's position, and negotiating terms that protect the client's interests while achieving a pragmatic resolution.
- ADR application and process initiation with KRA
- Settlement proposal preparation and negotiation
- Facilitated mediation and conciliation with KRA officers
- Binding settlement agreement documentation
Tax Dispute Resolution Questions
You must file a formal objection with the Commissioner of Domestic Taxes within 30 days of receiving the assessment. The objection must be in writing, state the grounds clearly, and be accompanied by supporting documents. If KRA rejects your objection or fails to respond within 60 days, you can appeal to the Tax Appeals Tribunal within 30 days. Our tax lawyers handle the entire process -- from preparing and filing the objection to representing you at the Tribunal and beyond.
The Tax Appeals Tribunal (TAT) is a specialised quasi-judicial body established under the Tax Appeals Tribunal Act, 2013. After filing a memorandum of appeal, both parties exchange documents and written submissions. The Tribunal conducts hearings where witnesses can be called and cross-examined. The TAT panel then delivers a reasoned decision which can confirm, vary, or annul the KRA assessment. Either party may appeal the TAT decision to the High Court on points of law. Proper legal representation significantly improves outcomes.
Yes, there are several avenues for reducing or eliminating tax penalties and interest. The Commissioner has discretion to remit penalties under Section 89 of the Tax Procedures Act where the taxpayer demonstrates reasonable cause. KRA also periodically runs voluntary disclosure and amnesty programmes that offer reduced or waived penalties for taxpayers who come forward. Additionally, successful objections or appeals that reduce the underlying tax liability automatically reduce associated penalties and interest. Our lawyers assess your situation and pursue the most effective strategy for minimising your total exposure.
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