The Kenyan tax system is a self-assessment system where a taxpayer assesses himself or herself and makes payments to KRA.

However, some individuals or business entities abuse the trust bestowed on them by the law to under declare or not to declare their income hence evading payment of taxes.

Before KRA makes a demand for taxes or issues an assessment, there is an elaborate engagement whereby documents, records and other information is requested for from the taxpayer for purposes of verifying the self-assessment. Where gaps are identified, leading to tax liability, the taxpayer is informed both orally and in writing and is requested to respond to the issues before an assessment or demand is issued.  Thereafter the taxpayer is informed of his or her right to object to the demand or assessment.

The taxpayer has the option of paying the taxes or objecting to the demand or assessment and appealing to the Tax Appeals Tribunal.