The KRA has increasingly been issuing notices to various Companies informing them of their intention to conduct tax compliance audits on their operations. In most instances, such compliance checks or audits end up in additional assessment being issued and back taxes demanded. Whereas taxpayers have a liberty to object to the assessment issued; the objection process tends to be time consuming and involving.
To avoid being caught unaware by KRA, it is advisable that companies conduct proactive self-tax evaluation/examination (tax health checks) of their tax affairs to ensure compliance with the various laws and regulations.
A tax health check is an in-depth review of the company’s compliance status, quantification of any resulting exposure where applicable.
The health check also comes up with recommendations on the best way of mitigating current and future tax exposures.
The tax health check findings can also form a basis for tax planning and restructuring.
Kindly contact our tax service team to discuss in details on how we can assist you in enhancing your Company’s compliance status.