What is the cost of Tax compliance?

Kenya operates a system of self assessment where it is the responsibility of the taxpayer to asses their tax status and make declaration which can cover certain tax heads like Corporation tax, VAT and PAYE

KRA has given every taxpayer the opportunity and time to evaluate their income and pay what is due when it us due, the higher the taxable profit made by a tax payer the merrier for the taxman who has a target collection set every year by the government Via The National Treasury.

It is important therefore for the taxpayer to be sure of their declaration also known as self assessment for failure to do so can result to either additional assessment where you are required to pay additional taxes when KRA feels with all reasonableness that the self assessment was under declared or default assessment where a taxpayer fails to file a return and pay taxes when they are due.

Once you receive either of the two assesmsnets it is only fair for you to engage KRA to resolve the matters and provide the necessary documents and information to avoid any enforcement by KRA.

It is therefore important for Taxpayers to adhere to the requirement of meeting filing deadlines as well as payment deadlines.

It is important to note that it is always cheaper to be a tax compliant taxpayer than otherwise.

You can always consult us for more guidance on Tax compliance matters??