Received a KRA notice or assessment? What to do in the first week

Read the notice before reacting

KRA sends several kinds of letters: requests for information, reminders about unfiled returns, notices of an audit or review, and assessments that state additional tax due. Each needs a different response, so start by working out which one you have and what date it was issued.

Check that the notice is genuine. Log in to iTax and confirm it appears against your PIN, and be wary of messages asking for payment to personal accounts or numbers.

Deadlines that matter

If you disagree with an assessment, the Tax Procedures Act generally allows 30 days from the date of the decision to lodge a valid objection on iTax, stating the grounds and attaching the supporting documents. A late objection is possible only with good reasons, so do not rely on it.

Once a valid objection is lodged, KRA must make an objection decision within a set period. If you are still not satisfied, the next step is an appeal to the Tax Appeals Tribunal, which also has its own time limit. Note every date in your compliance calendar the day the notice arrives.

Build the response from records

Gather the returns, ledgers, bank statements, invoices, eTIMS records and contracts for the period in question. Reconcile them to the figures in the notice and identify exactly where the difference arises, whether that is unreported sales, disallowed expenses, a withholding tax mismatch or a timing issue.

Respond to the specific points raised, in writing, with schedules that tie back to your records. Where part of the assessment is correct, accept that part and settle it; it reduces interest and narrows the dispute.

When to get help

Bring in an adviser early if the amount is significant, the notice covers several years or you are unsure of the grounds. Formal representation before the Tribunal is handled with your appointed tax agent or advocate.