Doing Business in Kenya - RSM International

4.8.13 VAT Objections and AppealsThe Commissioner may issue an assessment for tax for a number of reasonsincluding:• Failure to keep proper books and records.• Failure to lodge a return.• The Commissioner not being satisfied with the return lodged.• Failure to apply for registration.Where a taxpayer receives an assessment from the Commissioner, he may within 30days of the service of the assessment object to the assessment. The date of serviceof notice or assessment is 10 days from the date of assessment. All such objectionsshall be accompanied with supporting documentation. The Commissioner mayamend the assessment in accordance with the objection; amend the assessment inlight of the objection according to the best of his judgement; or refuse to amend theoriginal assessment.Where the taxpayer still disputes with the original or the amended assessment, hemay appeal to the Tribunal by first giving the Commissioner a Notice of Appeal within30 days of being issued with the assessment, and then within 14 days of the Noticefiling a Memorandum of Appeal. Either party may appeal to the High Court againstthe decision of the Tribunal but only on a question of law or fact, or both. A furtherright of appeal against a High Court decision exists to the Court of Appeal. Any taxdeclared by a decision of the Tribunal must be paid before the appeal is registered.4.9 Excise DutyExcise duty is imposed under the Customs and Excise Act (Cap 472). The taxesare levied on various products including alcoholic beverages, tobacco products,petroleum products, motor vehicles, carbonated drinks and mineral water, cosmetics,jewellery and cell phone airtime. The taxes rates vary for different products. Some ofthe products on which excise duty is charged and the rates are:• Beers, ciders and spirits - The higher of Shs 70 per litre or 40% of the retailselling price• Wines - The higher of Shs 80 per litre or 40% of the retail selling price• Mineral and aerated waters - Shs 3 or 5%• Carbonated drinks, non-alcoholic beverages and juices - 7%• Tobacco products - Higher of Shs 1,200 per mille or 35% of retail selling price• Vehicles:• locally assembled 0%• imported 0 - 20%DOING BUSINESS IN KENYA59