Client: XCMG East Africa
Project Title: KRA Tax Audit Assignment
Commencement Date: March 2025
Project Duration: Ongoing (Monthly Compliance)
Service Scope: Tax Reporting, Filing, Compliance Consulting

Overview

Tomamoru was entrusted with the responsibility of  Tax Audit for XCMG East Africa, a leading player in the heavy machinery industry. The assignment involves ensuring full compliance with Kenya Revenue Authority (KRA) tax regulations. This includes monthly income tax returns, VAT submissions, PAYE calculations for employees, and overall tax reporting accuracy.

1. Pre-Audit Risk Assessment

• Review the client’s financial records, tax returns, and KRA filings.

• Identify areas of risk or non-compliance that could attract penalties.

• Prepare a risk matrix and recommendations before the audit begins.

2. Audit Representation

• Act as the official liaison between the client and KRA auditors.

• Attend audit meetings, respond to audit queries, and submit documents on behalf of the client.

• Ensure all responses are legally sound and well-documented.

3. Documentation Support

• Organize and compile all required documents such as:

  • VAT returns

  • Income tax filings

  • PAYE returns

  • Withholding tax records

  • Supporting ledgers and bank statements

4. Tax Reconciliation

• Reconcile the client’s books with filed tax returns.

• Identify discrepancies between financial records and KRA iTax submissions.

5. Legal and Technical Advice

• Interpret and explain tax laws and KRA guidelines relevant to the audit.

• Advise on allowable deductions, tax exemptions, and compliance defenses.

6. Negotiation and Settlement

• If the audit results in a tax demand, help negotiate for:

  • Waivers or reductions in penalties and interest.

  • Structured payment plans (instalment plans with KRA).

  • Alternative dispute resolution if necessary.

7. Post-Audit Support

• Assist in implementing audit recommendations or corrections.

• Update tax compliance processes to avoid future risks.

• Prepare for possible appeals if the client disputes KRA findings.

Impact & Results

Since the commencement of the project in March 2025, Tomamoru’s dedicated tax audit services have enabled XCMG East Africa to:

• Avoid late filing penalties and interest charges.

• Streamline internal processes for payroll and tax documentation.

• Gain clarity on tax-saving strategies within the industrial and machinery sectors.

With a consistent and professional approach, Tomamoru ensures XCMG East Africa remains fully compliant, freeing the company to focus on operational efficiency and market expansion.

Client Testimonial

“Tomamoru has brought structure and confidence to our tax management process. Their commitment and expertise have ensured that we remain compliant without stress or surprises.”
— XCMG East Africa Management

For more information on how Tomamoru can assist your business with tax compliance, feel free to [Contact Us].