THE LAW

An objection decision shall include a statement of findings on the material facts and the reasons for the decision.

Section 51(10) of the TPA, which requires an objection decision to include a statement of findings on the material facts and the reasons for the decision. An Objection Decision where the KRA simply confirmes the assessment without offering any reasons or explanations for rejecting the objection or refusing to amend the assessment is invalid.

JOSEPH MURIITHI NDIRANGY T/A NDIRANGU HARDWARE VS. KRA DOMESTIC TAXES  High Court ruled that an Objection Decision made by the Kenya Revenue Authority (KRA) is inadequate  if it fails  to provide written reasons for rejecting an Objection. The Court emphasized that the duty to give reasons is not a trifling requirement, but a constitutional mandate rooted in the right to fair administrative action.

in the Objection Decision, the KRA simply confirmed the assessment without offering any reasons or explanations for rejecting the objection or refusing to amend the assessment. In the Objection Decision the KRA stated as follows:

Dear Sir/Madam,