Case study: ELLE KENYA LIMITED VS COMMISSIONER OF INVESTIGATIONS AND ENFORCEMENT DEPARTMENT [2025] KEHC 2783 (KLR)
In this case, the High Court found that an objection to a tax decision made by the Appellant was defective for lack of supporting documents.
Consequently, the tax assessment of Ksh 525, 653, 847 by KRA was upheld.
WHAT IS AN OBJECTION TO A TAX DECISION?
An objection to a tax decision is an objection lodged by a taxpayer who disputes a tax decision, such as an assessment by KRA.
An objection to the tax decision is lodged by the Commissioner within 30 days of being notified of the disputed decision.
The Commissioner is required to make a decision on the objection within 60 days from the date of receipt of the valid objection.
WHAT IS A VALID NOTICE OF OBJECTION?
A notice of objection is deemed validly lodged if:
- It states precisely the grounds of objection.
- It states the amendment required to be made to correct the decision.
- It states the reasons for the amendments.
- In relation to an assessment, the taxpayer has paid the entire amount of tax not in dispute or has applied for extension of time to pay the amount of tax not in dispute
- All documents relating to the objection have been submitted.
If the commissioner determines that the notice has not been validly lodged, he is required to inform the taxpayer about the same within 14 days and request the taxpayer to provide the information specified within 7 days after the date of the notice.
CAN TIME FOR LODGING A NOTICE BE EXTENDED?
A taxpayer may apply for an extension of time to lodge a notice of objection.
An application for extension of time may only be allowed if:
- The taxpayer delayed in filing the Notice due to absence from Kenya, sickness or any other reasonable cause; and
- The taxpayer did not unreasonably delay in lodging the notice of objection.
The Commissioner is required to communicate the decision on the application for extension of time.
WHAT STEPS SHOULD YOU TAKE IF DISSATISFIED WITH AN OBJECTION DECISION?
A person dissatisfied with an objection decision may appeal to the Tax Appeals Tribunal within 30 days after being notified of the decision.
