Taxpayers have the obligation to provide supporting documents to Kenya Revenue Authority (KRA) and in the absence of documentation, the agency is free to make its own assessment of tax liability.
The Tax Appeal Tribunal said in a ruling that the burden of providing supporting documentation lies with the taxpayer.
The law places the burden of providing supporting documentation on the appellant and in the absence of such documentation, the respondent is left with no option but to assess and apply the law as it did,” the tribunal ruled.
It made the ruling in a case filed by Roshina Timber Mart, a Mombasa based company dealing in ceramics (tiles and sanitary ware).
Evidence presented to the tribunal showed that KRA wrote to the company seeking to undertake audit for 2013 and 2014 for partners’ income and January 2013 to February 2016 for value added tax, PAYE and withholding tax.
Section 58 of the Tax procedures Act, allows KRA to inquire into the affairs of a company or an individual for inspection and the taxman has free access to buildings, equipment, devices and even records.
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