You have quite often approached a KRA tax agent to provide you with guidance and support on taxation.
Here is what you need to know, to effectively work with your tax agent in achieving your tax obligations:
Tax agents are party licensed by the Commissioner to handle tax matters on behalf of a taxpayer. They could also be an administrator, a personal representative, an executor of a will, a trustee - in bankruptcy, a receiver or liquidator appointed to administer, manage, liquidate or wind up the affairs of a taxpayer, including a deceased taxpayer.
The Tax Agents Committee, which ensures that tax agents are fit for practice, recommends them for registrations. The Committee recommends them as proper persons to prepare returns, notice of objections or otherwise transact business with the Commissioner on behalf of the taxpayer.
The appointment of a tax agent does not relieve taxpayers from performing any obligation imposed on them under a tax law that their tax agent has failed to perform. This means that they should always bring themselves up to speed with their tax records, such that, should the agent fail to perform their duty as required, the taxpayer is better informed to opt for a better alternative. Taxpayers can safely engage tax agents for their services since they are verified as competent practitioners and will help them comply by;
- Preparing and filing correct tax returns to ensure taxes are not evaded;
- Submitting proper documents when requested by KRA;
- Submitting payments collected on behalf of the Authority;
- Using the correct tariff classifications to ensure imports are not undervalued
- Maintaining tax records on behalf of the taxpayer
- Using the prescribed unit of currency in books of accounts, records, tax returns or tax invoices as Kenya Shillings.
By Cynthiah Kerubo
KRA Tax Education