Filing objection against tax demand cut to seven days

Clients seek services at KRA headquarters in Nairobi on February 23, 2024.

Photo credit: File Photo | Wilfred Nyangaresi | Nation Media Group

Taxpayers that dispute tax demands will have seven days to file a notice of objection even as the Finance Bill 2024 gives the Kenya Revenue Authority (KRA) more time to respond.

Should lawmakers approve the Finance Bill, 2024, the KRA will have 90 days to respond to an objection lodged by the taxpayer against a tax decision, up from the current 60 days.

The Finance Bill, 2024, which sets forward the revenue-raising plan for the next fiscal year starting July, was tabled in the National Assembly by the Cabinet Secretary for National Treasury Njuguna Ndung’u.

In the proposed changes, KRA will reject a taxpayer’s notice of objection against a tax decision, either for lacking relevant information or not being lodged within the legally stipulated time frame of seven days.

“Section 51 of the Tax Procedures Act is amended—in subsection (4A), by deleting the words ‘the Commissioner may make an objection decision within sixty days after the date on which the notice of objection was lodged’ and substituting therefor the new words “the objection shall be deemed disallowed,” reads the Finance Bill.

Should the National Assembly approve the amendment it will pile pressure on taxpayers with a dispute with the taxman to quickly put together a water-tight notice of objection against a tax decision.

Section (4A) of the Tax Procedures Act gives the KRA Commissioner 60 days to reject, through writing, a notice of objection by a taxpayer that either lacks some information or was lodged outside of the stipulated time frame.

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Note: The results are not exact but very close to the actual.