Tax Audits

Tax Audit is an independent examination of books of accounts and all tax records of a tax registrant by KRA in order to ensure proper compliance of tax laws and control the illicit tax practices.

During a tax audit in the , the auditor can seek any documents as they deem neccessary which can include, but not limited to:

• All supply records for Goods and Services.
• Tax Invoices and all documents related to receiving Goods or Services.
• Tax Credit Notes.
• All Tax Invoices.
• All records of Goods and Services that have been disposed or used for matters not related to Business, and Taxes paid for the same.
• All records of Goods and Services purchased and for which the Input Tax was not deducted.
• All records of any adjustments or corrections made to the accounts or Tax Invoices.

Tax Audit is rather unfamilia waters for the business communities in the region and requires utmost attention. A pre-audit review is appropriate for businesses to understand their exposure to non-compliance.