Tax Internal Auditor – KRA Compliance

A. Tax Compliance and Regulatory Management

• Ensure the company complies with all KRA tax requirements and applicable tax legislation.
• Review and verify timely filing of all statutory tax returns.
• Monitor compliance with:
  • Corporation Tax.
  • Value Added Tax (VAT).
  • Pay As You Earn (PAYE).
  • Withholding Tax (WHT).
  • Withholding VAT, where applicable.
  • Monthly Rental Income Tax, where applicable.
  • Excise Duty, where applicable.
  • Other applicable statutory tax obligations.
• Ensure tax payments are accurately calculated and paid within statutory deadlines.
• Monitor changes in Kenyan tax laws, Finance Acts and KRA regulations and advise management accordingly.

B. Internal Tax Audits

• Conduct periodic tax audits across all company departments.
• Review financial transactions to ensure correct tax treatment.
• Audit sales invoices, purchase invoices, credit notes and debit notes.
• Verify that all taxable transactions are properly captured in the accounting system.
• Review VAT input and output tax reconciliations.
• Check the accuracy of PAYE, withholding tax and corporation tax computations.
• Identify tax exposures, underpayments, overpayments and potential penalties.
• Recommend corrective measures where tax compliance gaps are identified.

C. KRA Compliance and eTIMS Management

• Ensure compliance with KRA's Electronic Tax Invoice Management System (eTIMS) requirements.
• Verify that sales invoices are properly generated and transmitted through approved systems.
• Ensure supplier invoices are valid and compliant with KRA requirements.
• Verify that expenses claimed for tax purposes are supported by valid documentation.
• Conduct periodic reconciliations between the accounting system, eTIMS records and iTax returns.
• Identify discrepancies between company records and KRA tax records.

D. Tax Reconciliations and Reporting

• Prepare and review monthly tax reconciliations.
• Reconcile VAT returns against the general ledger and sales and purchase records.
• Reconcile PAYE returns against payroll records.
• Reconcile withholding tax certificates against accounting records.
• Review corporation tax computations against audited financial statements.
• Prepare monthly tax compliance reports for management.
• Maintain a tax compliance calendar to ensure all statutory obligations are met.

E. KRA Audits and Tax Investigations

• Coordinate the preparation of documentation required during KRA audits.
• Review KRA assessment notices, queries and tax demands.
• Assist management in responding to KRA queries and audit findings.
• Identify potential tax liabilities and recommend appropriate action.
• Maintain proper records of tax correspondence, assessments, payments and compliance certificates.
• Liaise with external tax consultants where necessary.

F. Internal Controls and Risk Management

• Assess the effectiveness of existing tax controls and procedures.
• Identify weaknesses in financial processes that could result in tax non-compliance.
• Recommend improvements to accounting and tax processes.
• Monitor implementation of corrective actions arising from internal and external tax audits.
• Ensure tax-related documentation is properly maintained and readily available.