Objection to tax decision
(1) A taxpayer who wishes to dispute a tax decision shall first lodge an objection against that tax decision under this section before proceeding under any other written law.(2) A taxpayer who disputes a tax decision may lodge a notice of objection to the decision, in writing, with the Commissioner within thirty days of being notified of the decision.
(3) A notice of objection shall be treated as validly lodged by a taxpayer under subsection (2) if—
- (a) the notice of objection states precisely the grounds of objection, the amendments required to be made to correct the decision, and the reasons for the amendments; and
- (b) in relation to an objection to an assessment, the taxpayer has paid the entire amount of tax due under the assessment that is not in dispute or has applied for an extension of time to pay the tax not in dispute under section 33(1). Finance Act, 2018Effective 1st July 2018
- (c) all relevant documents relating to the objection have been submitted. Finance Act, 2018Effective 1st July 2018
(4A) Despite subsection (3), where a taxpayer fails to provide the information required under subsection (4) or fails to provide the information within the specified period, the Commissioner may make an objection decision within sixty days after the date on which the notice of objection was lodged. (Finance Act 2023 wef 1st-July-2023 s61)
(5) Where the tax decision to which a notice of objection relates is an amended assessment, the taxpayer may only object to the alterations and additions made to the original assessment.
(6) A taxpayer may apply in writing to the Commissioner for an extension of time to lodge a notice of objection.
(7)The Commissioner may allow an application for the extension of
time to file a notice of objection if* The Commissioner shall consider and may allow an application under subsection (6) if* –(Finance Act 2022-wef-01-July-2022*)
(8) Where a notice of objection has been validly lodged within
time, the Commissioner shall consider the objection and decide
either to allow the objection in whole or in part, or disallow it, and
Commissioner’s decision shall be referred to as an “objection
decision”.
(9) The Commissioner shall notify in writing the taxpayer of the objection decision and shall take all necessary steps to give effect to the decision, including, in the case of an objection to an assessment, making an amended assessment.
(10) An objection decision shall include a statement of findings on the material facts and the reasons for the decision.
(11) Where the Commissioner has not made an objection decision
within sixty days from the date that the taxpayer lodged a notice
of the objection, the objection shall be allowed.* Finance Act, 2019Effective 7th November 2019*
**The Commissioner shall make the objection decision within sixty
days from the date of receipt of—(a) the notice of objection; or (b) any further information the Commissioner may require from
the taxpayer,
failure to which the objection shall be deemed to be allowed.(Finance Act 2022-wef-01-July-2022*)
(5) Where the tax decision to which a notice of objection relates is an amended assessment, the taxpayer may only object to the alterations and additions made to the original assessment.
(6) A taxpayer may apply in writing to the Commissioner for an extension of time to lodge a notice of objection.
(7)
- (a) the taxpayer was prevented from lodging the notice of objection within the period specified in subsection (2) because of an absence from Kenya, sickness or other reasonable cause; and
- (b) the taxpayer did not unreasonably delay in lodging the notice of objection.
(7A*) The Commissioner shall notify the taxpayer of the decision made under subsection (7) within fourteen days after receipt of the application. (Finance Act 2022-wef-01-July-2022*)
(9) The Commissioner shall notify in writing the taxpayer of the objection decision and shall take all necessary steps to give effect to the decision, including, in the case of an objection to an assessment, making an amended assessment.
(10) An objection decision shall include a statement of findings on the material facts and the reasons for the decision.
failure to which the objection shall be deemed to be allowed.
(11) The Commissioner shall make the objection decision within sixty days from the date of receipt of a valid notice of objection failure to which the objection shall be deemed to be allowed. (Finance Act 2022-wef-01-July-2022*)
(12) A person who is dissatisfied with the decision of the Commissioner under subsection (11) may appeal to the Tribunal within thirty days after being notified of the decision. (Finance Act 2022-wef-01-July-2022*)
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