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Introduction

Managing a tax audit means being in control of the tax audit.

Being in control of a tax audit will entail getting involved in the tax audit process from the start to the end of the audit.

Any tax audit requires the involvement of the taxpayer in three stages:

a. Before the tax audit.

b. During the actual tax audit.

c. After the tax audit.

In each of the stages, there are specific things that the taxpayer is required to do to ease the management of the tax audit process. The following are some of the things that a taxpayer can do to effectively manage the tax audit process.

Before the tax audit

1. Obtain an official letter from KRA with the list of requirements e.g. documents required.
2. Involve a tax expert (tax consultant, tax advisor, tax accountant or tax lawyer) before commencement of the tax audit to analyze the systems.
3. Prepare relevant records and documents within the agreed time.
4. Agree with KRA officers on the tax audit time frame.
5. Inform members of staff about the tax audit.

During the actual tax audit

1. Invite a tax expert (tax consultant, tax advisor, tax accountant or tax lawyer) for the opening meeting.
2. Appoint one contact person to avoid everyone in the company dealing with the KRA officers.
3. Senior-most person in the company should avoid dealing with KRA officers when the actual audit is happening.
4. List down all records and documents provided to KRA officers, date when provided and date when returned.
5. Insist on one form of tax being audited at a time to avoid confusion.
6. Cooperate to avoid wasting time.
7. Avoid unnecessary questions.
8. Consult tax expert (tax consultant, tax advisor, tax accountant or tax lawyer) on queries not sure of.
9. Resolve as many issues as fast as possible before completion of the tax audit.
10. For any questions, seek relevant tax advice from the tax experts (tax consultant, tax advisor, tax accountant or tax lawyer).
11. Invite tax expert (tax consultant, tax advisor, tax accountant or tax lawyer advisors) for the exit meeting.

After the tax audit

1. Follow up with KRA officers on any outstanding issues.
2. Involve your tax experts (tax consultant, tax advisor, tax accountant or tax lawyer) from this stage on to sort out any pending issues.
3. Pay any tax liabilities to KRA, not in dispute.
4. Respond to any subsequent letters from KRA without any delay.
5. Get an official letter from KRA officers confirming the tax position.
6. Pay your tax expert (tax consultant, tax advisor, tax accountant or tax lawyer) well and on a timely basis.

There are many other steps that a taxpayer can take to adequately prepare and participate in the tax audit process.

Questions:

1. Have you participated in any tax audit process by KRA?
2. What steps have you taken to prepare for any tax audit?
3. What steps will you prepare for a possible tax audit process by KRA?

Feel free to send us tax and investments in Kenya questions or topics via email taxkenya@gmail.com that you would wish to be covered in this Website.

Disclaimer

This post is for general overview and guidance and does not in any way amount to professional advice. Hence, www.taxkenya.com, its owner or associates do not take any responsibility for results of any action taken on the basis of the information in this post or for any errors or omissions. Kenyan taxpayers must always rely on the most current information from KRA. Tax industry in Kenya is very dynamic.