powerful mastering what is a KRA review letter request?: Your Empowering Guide to a Positive Tax Outcome

When dealing with tax assessments, audits, or objections, the Kenya Revenue Authority (KRA) may issue a review letter request to taxpayers. This letter is an important part of Kenya’s tax dispute and compliance process, and understanding its purpose can help you respond effectively and avoid unnecessary penalties or prolonged disputes.

What is a KRA review letter requests.

KRA Review letter is an official notification that your tax filings are being audited or verified for compliance.

A KRA Review Letter Request is an official communication from the Kenya Revenue Authority asking a taxpayer to provide additional information, documents, or clarification regarding a specific tax matter. It often follows after a taxpayer has filed an objection or a self-assessment that the KRA wishes to review further.

The letter typically outlines:

The tax period under review
The specific issues in question
The documents or evidence required
The timeframe for response

Receiving such a letter means KRA is conducting a review of your tax position, not necessarily an audit or investigation. However, it should be taken seriously, as your response may determine whether your objection or appeal succeeds.

Things to have after receiving a KRA review letter request.

Supporting documents: The letter typically requests documents to support the information in your tax returns, such as:
Invoices and receipts
Bank statements
Payroll records (for PAYE)
Specific time period: The request will specify the taxes and reporting periods being reviewed.
Response deadline: It will provide a deadline by which you must respond and submit the requested documents.

Common Reasons for Receiving a KRA Review Letter

Taxpayers can receive a review letter for several reasons, including:

Incomplete documentation when filing a tax objection
Discrepancies between declared income and third-party data (e.g., iTax, withholding certificates, or bank records)
Unexplained tax variances in VAT, PAYE, or corporate tax returns
Clarification requests on expenses, deductions, or input VAT claims
Follow-up on a previously submitted objection or appeal

Triggers for a review letter

The KRA can initiate a review for several reasons, which may include:

Inconsistencies in returns: Discrepancies between your declared income and third-party records from banks, suppliers, or other businesses.
Discrepancies in VAT data: The iTax system automatically flags inconsistencies between a buyer’s and a seller’s VAT declarations.
Late or incomplete filings: Missing or late tax filings often trigger reviews.
Claiming a tax refund: Large refund claims are frequently flagged for extra scrutiny.
Random checks: The KRA also conducts routine audits on a random basis.
Filing “nil” returns: A history of filing returns with zero income can trigger a review, especially for businesses.
Information from third parties: Tips from informants or whistleblowers can initiate an investigation.

What to do if you receive a KRA review letter

If you receive a review letter, follow these steps to ensure a smooth process:

Read carefully: Note the specific tax obligations, periods, and documents the KRA has requested.
Act promptly: The letter specifies a deadline. Missing it can result in penalties or automatic tax assessments.
Gather accurate documents: Collect all relevant invoices, receipts, and records. It is crucial not to alter or fabricate any documents, as this could worsen the situation.
Seek professional advice: Engage a licensed tax consultant. They can help you organize your records, analyze the KRA’s queries, and respond appropriately.
Consider a payment plan: If the review reveals outstanding tax liabilities, it may be possible to negotiate a payment plan with the KRA to avoid penalties.

How to Respond to a KRA Review Letter Request

Responding accurately and within the set deadline is crucial. Here’s what you should do:

Review the Letter Carefully
Identify the specific issues raised and the documents requested. Misunderstanding the letter may lead to incomplete or irrelevant submissions.
Gather Supporting Documents
collect all financial statements, invoices, contracts, and tax computations relevant to the issue. Ensure the documents are authentic and organized.
Provide a Written Explanation
Draft a clear, professional response addressing each point raised by KRA. Your explanation should align with your tax filings and comply with the Tax Procedures Act, 2015.
Submit through the Right Channel
most review letter responses are submitted via the iTax platform or directly to the KRA officer handling your case. Always keep copies and acknowledgement receipts.
Consult a Tax Expert
engaging a qualified tax consultant or accountant ensures your response is accurate, timely, and legally compliant. This can significantly improve your chances of a favorable outcome.

What Happens After Submitting Your Response

Once your documents and explanations are received, KRA will:

Review your submission and verify the details
Communicate their findings via a review decision or notice of confirmation
If satisfied, adjust the assessment accordingly
If not, issue a confirmed assessment, which you can further appeal to the Tax Appeals Tribunal (TAT)

Why You Need a Professional Accounting Firm

Handling KRA correspondence requires expertise, precision, and knowledge of Kenya’s tax laws. At Junyan & Associates, we assist clients in:

Interpreting and responding to KRA review letters
Preparing documentation and evidence
Filing timely objections and follow-ups
Representing clients before KRA and the Tax Appeals Tribunal

Our team ensures that your tax matters are handled efficiently — saving you time, money, and stress.

Conclusion

A KRA Review Letter Request is not a penalty — it’s an opportunity to clarify your tax position. Responding promptly and correctly can prevent escalations, penalties, or disputes. If you’re unsure how to proceed, it’s wise to seek professional help.