Surprise the Commissioner with a VALID Notice of Objection

Section 51 of the Tax Procedures Act, 2015

The details of how to craft a valid notice of objection to any tax assessment are contained in Section 51 of the Tax Procedures Act, 2015. Always check whether there have been any amendments over the years.

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What is an Objection Notice?

A Notice of Objection to a tax assessment is a formal communication to the tax commissioner initiated by a taxpayer who disagrees with the tax assessment issued by the tax commissioner. Objection Notice is part of a process because it starts from somewhere and ends somewhere.

Three Important Documents

Before objecting to a tax assessment you need to have the following 3 important documents:

A Notice of Intention to Audit.
A Notice of Audit Findings.
A Notice of Assessments.

Basis of Tax Disputes

Tax objections are because of disagreements or disputes. Those disagreements can be on:

The tax types.
Tax periods.
Tax rates.
Unreported sales.
Uncredited payments.
Tax returns.
Tax payments.
Tax jurisdictions.
Other issues.

This process allows taxpayers to raise objections and provide supporting evidence to challenge the:

Accuracy of the tax assessment (figures, rates, etc.) or
Validity of the tax assessment (tax type, rates, period, actions etc.).

Contents of a Notice Objection

There are several contents to be included in a Notice of Objection. Here are the expected contents of a Notice of Objection and the relevant details:

#1. Header:

Taxpayer full name, address (physical, P.O. Box, email, phone, and taxpayer identification number (PIN). Date of Objection Notice.

#2. Reference Details:

Reference number of the tax assessment being objected to.
Date of the tax assessment.
Subject of the Objection Notice – tax types, amount

#3. Grounds for Objection:

Clear and specific reasons for objecting to the tax assessment.
Detailed explanation of each ground for objection, providing supporting evidence where applicable.

#4. Relevant Tax Laws and Regulations:

Citation of specific tax laws, rules, regulations, or legal provisions that support your objection.
Explanation of how the laws apply to your objection.

#5. Relief Sought:

Clearly state the specific relief or remedy you are seeking. Are you objecting to the full assessment or part of it? Has any payment you agree to been paid?
Provide details on any adjustments or corrections you believe should be made to the tax assessment.

#6. Records and Documents:

Attach relevant records and documents as evidence supporting your objections, such as financial statements, receipts, invoices, or any other relevant records.

#7. Declaration:

In the Notice of Objection, you will need a declaration that the information provided is true and accurate to the best of your knowledge.

#8. Timelines:

Notice of Objection are typically required to be submitted within 30 days from the tax assessment date.
If late follow Section 51 of TPA – Sickness, Out of the country other reasonable grounds etc.
The Commissioner should respond to the Notice of Objection before the expiration of the mandatory sixty (60) days. The sixty days are from the date of receipt or last communication.

#9. Submission Method:

Specify the submission method, whether in person, by mail, or through an online portal.

#10. Contact Information:

Provide your contact details, including phone number and email address, for communication purposes.

#11. Relevant Tax Laws:

a. The Income Tax Act, Cap 470.

b. Value Added Tax Act, 2013.

c. Domestic Excise Duty Act, 2015

d. East African Community Customs Management Act, 2004.

e. Tax Procedures Act, 2015.

Objection Decision

The Commissioner will give a ruling referred to as an Objection Decision. If you are:

Satisfied with the Commissioner’s decision – end of the matter.
Not satisfied with the Commissioner’s decision – Proceed to Tax Appeals Tribunal (TAT) – Follow the details in Section 52 of the Tax Procedures Act, 2015 and the details in the Tax Appeals Tribunal Act

It is crucial to consult with a tax professional or legal advisor to ensure that your Notice of Objection is well-prepared and complies with the specific requirements of the tax laws in Kenya.

This will determine whether your Notice of Objection is VALID.

Additionally, staying informed about any updates or amendments to tax laws is essential for an effective objection process.

Thank you for reading the post.

dr. wakaguyu W.K.

We have provided the information that should help you to craft a Notice of Objection. If you need to consult on HOW to craft a VALID Notice of Objection to any tax assessment, Contact US.