The Kenya Revenue Authority (KRA) is the National Revenue Collection Agency for the Government of Kenya.  Our Vision is:  “A Globally Trusted Revenue Agency Facilitating Tax and Customs Compliance”. KRA is seeking result-oriented, self-driven individuals with high integrity to be recruited as Independent Panel of Experts.

TERMS OF REFERENCE FOR INDEPENDENT PANEL OF EXPERTS

1. Background

The Tax Dispute Resolution process in Kenya Revenue Authority (KRA) has in the past year been reformed by consolidating the process under the Tax Dispute Resolution Division, which is under Legal Services and Board Coordination Department. This was done via Gazette Notices No 12048 of 19 November 2018 and 1036 of 1st February 2019, which delegated the powers and functions conferred by Section 51 of the Tax Procedures Act, 2015 and Section 229 of the East Africa Community Customs Management Act to the Commissioner in charge of Tax Dispute Resolution. This process, therefore, separates tax assessment processes up to the point of issuance of an assessment with the post-assessment dispute resolution process. The Commissioners responsible for Domestic Taxes and Customs and Border Control handle the pre-assessment process respectively whereas the Commissioner responsible for dispute resolution handles the post- assessment process. This, in essence, creates independence between the assessor and the reviewer of tax assessment objections, ensures fair administrative action in the process and inspires confidence in KRA’s tax dispute resolution mechanism.

2. Objectives of the Reformed Tax Dispute Resolution process

The objective of transforming the Dispute Resolution Process is to ensure expeditious resolution of Tax Disputes, which is an important aspect of good Tax Administration. Prolonged Tax Disputes hamper the Authority’s Tax Collection efforts as Taxes owed are withheld for long periods, as the dispute is resolved. Additionally, resolving Tax Disputes through the judicial process is costly and time-consuming to both the Kenya Revenue Authority (KRA) and Taxpayers. Tax dispute resolution which doesn’t appear to be independent to the taxpayer also impacts negatively on Customer Service to Taxpayers and hampers voluntary tax compliance, especially when Taxpayers feel that they are treated unfairly by the Authority. The independence of the Tax Dispute Resolution process serves to win the trust and confidence of the Taxpayers in the process.  

3. Structure of the Tax Dispute Resolution Division

The publication of the above-mentioned Gazette Notices led to the creation of the Tax Dispute Resolution Division, which carries out two functions namely the Alternative Dispute Resolution function (ADR) and the Independent Review of Objections (IRO) function. The IRO function has been staffed with experienced Tax and Customs professionals who will review tax and customs objections and make objection decisions guided by the applicable statutes and practice guidelines. This has now been implemented and the process commenced with the review of objections in the Large Taxpayers Office (LTO) and the Medium Taxpayers Office (MTO).

Further to the above, objections were previously subjected to a Technical Forum at the revenue office where the dispute arose, and in the absence of the taxpayer or their representative. Under the new framework, which resonates with KRA’s mission of building trust through facilitation, both the Taxpayer and the Commissioner appear before tax officers, who were not involved in the generation of the dispute, as parties to the dispute to present and defend their respective positions. The framework also allows for the use of a panel of independent tax experts, these being non-KRA staff who are expected to hear the case, review evidence provided by both parties and share their independent opinion on the case with the Tax Dispute Resolution office. It is on this basis that the Terms of Reference (TORs) have been prepared.

4. Scope

The Authority may engage an Independent Expert to cover the scope of the tax disputes in the following circumstances;

1. Where a tax or customs objection has been referred to the expert by the Commissioner in charge of Tax Dispute Resolution.
2. Where the legal or tax issues or Customs issues are of a nature that calls for expertise and experience of which the Independent expert is endowed with.
3. Where the law and facts arising out of the tax and customs objection are of the kind that requires someone with expertise and specialization found with the Independent expert.
4. In any other circumstances where it would be in the best interest of the Authority to engage the Independent expert.

5. Terms of Reference

The independent expert shall efficiently act and respond by:

1. Reviewing documents forwarded to them by the Commissioner in respect of any tax or customs disputes, which they have been called upon to give an opinion on.
2. Attending the hearing of cases as per the Commissioner’s invitation once they confirm attendance on their part,
3. Interrogating the disputants for a better understanding of the cases at hand,
4. Compiling reports of findings (objection decision) following the hearing of  cases as is provided under the relevant law and seeking clarifications or directions from the Commissioner where need be,
5. Presenting his or her objection decision to the Commissioner within the timelines stipulated by law.
6. Keeping confidential, the Authority’s and taxpayer’s information at all times.
7. Comprehensively advising the Authority in all matters related to tax and customs objections.
8. Generally keeping the Authority informed on the progress of all the objections being handled.

6. Specification of the Experts

Candidates for the Panel of Experts shall:

1. Have a minimum of a University Degree from an institution recognized by the Commission for University Education in Kenya.
2. Be aged 40 years and above.
3. Have worked in a Tax Department in a Company, a Tax Administration, or an Audit Firm for a minimum period of 15 years, 10 of which must be in a Senior Management Position.
4. Not be in full-time employment of a Company, a Parastatal, an Audit Firm or a Government Agency.
5. Not be handling any cases or issues which would bring about a conflict of interest.
6. Be Tax Compliant.
7. Be able to meet tight deadlines.
8. Have no past Criminal Record.
9. Be able and willing to hold meetings in Nairobi.
10. Uphold a high degree of Integrity

7. Period of Appointment

The Members shall be appointed on contract for a period of one (1) year renewable at the discretion of the KRA. Either Party can terminate the contract upon giving the other party a two (2) months’ written notice of an intention to terminate the contract.

8. Remuneration

The Panel of Experts shall be paid a fee per sitting which will be taxed at the applicable rate.

Members commuting from outside Nairobi shall be reimbursed costs incurred based on the AA mileage rates on a motor vehicle not exceeding 2000cc.

9. Exemptions

Members shall not hold themselves as employees of KRA and are not entitled to benefits available to KRA employees except as stipulated in 6 above.

10. Reporting

The Members of the Independent Panel shall report to the Commissioner in charge of Tax Dispute Resolution.

Note:

1. All applications from interested and qualified candidates must be submitted.
2. ONLY shortlisted candidates will be contacted.
3. All applications should be submitted by 5.00 pm on 17^th May, 2019.
4. KRA is an equal opportunity employer committed to gender and disability mainstreaming.
5. KRA does not charge any application, processing, interviewing or any other fee in connection with our recruitment process.

Applications in sealed envelope should be dropped into the designated box situated on the Ground Floor of Times Tower, clearly marked: “Application for Independent Panel of Experts”