High Court Affirms the Centrality of i-Tax in Lodging Valid Tax Assessment Objections

In a judgment delivered on 27^th October 2025, the High court, declared that for a tax assessment objection to be valid, it must be submitted through the itax platform. Consequently, any objection submitted outside the iTax portal whether by email, physical delivery, or other informal means does not meet the legal threshold for a valid objection under the Tax Procedures Act. This decision underscores the need for procedural compliance in tax administration and signals to taxpayers and practitioners alike the critical need to adhere strictly to timelines set out under the Tax procedures Act.

Background facts

The Commissioner of Domestic Taxes (“Commissioner”) issued a tax assessment to the taxpayer amounting to KShs. 1.136 billion for the period between 2018 and 2023. Dissatisfied with the assessment, the taxpayer, lodged an initial objection by a letter dated 29 September 2023, via email.  Despite this objection, the commissioner issued a demand, contending that no valid objection had been filed on itax. However, following engagement between the parties, the taxpayer was permitted to submit a late objection, which was then lodged through the iTax portal on 30 November 2023.

Following the objection, the Commissioner rendered an objection decision on 29^th January 2024, revising the tax liability downwards to KShs. 1.129 billion. Dissatisfied with the Commissioner’s decision, the taxpayer appealed to the Tax Appeals Tribunal (TAT).  The Tribunal found in favour of the taxpayer and held that the taxpayer’s initial objection via e-mail was properly lodged and that the Commissioner’s objection decision of 29^th January 2024 was delivered outside the 60-day period prescribed under section 51(11) of the Tax Procedures Act with the consequence that the whole of the taxes assessed (Kshs. 1,129,243,870) was set aside.

The tribunal’s decision precipitated an appeal by the commissioner to the High court. The commissioner argued that the initial objection filed on 29^th September 2023 was invalid having not been filed through itax portal, hence the 60-day period for delivery of objection decision ought to have started running from 30^th November 2023 -which is the date when the taxpayer lodged an objection on the itax.

High Court’s decision/Holding

The issue for determination was whether an objection lodged outside the itax portal constituted a valid notice of objection within the meaning of Section 51 of the Tax Procedures Act, 2015. In considering the appeal, the High Court examined the procedural requirements under Section 51 of the Tax Procedures Act.

The Court found that the taxpayer’s initial objection, submitted via email, did not constitute a valid filing under the Act. Consequently, the only valid objection was that lodged on 30 November 2023 through the iTax system. It therefore followed that the 60-day period for the Commissioner to issue an objection decision began to run from that date, and the decision issued on 29 January 2024 was within the statutory timeframe.

This decision was based on a reasoning that just as a tax assessment not generated through the iTax system cannot be deemed a valid assessment under the law, equally, an objection to a tax assessment must likewise be lodged through the same iTax system to acquire legal validity.

The Court further noted that the i-tax, being the prescribed electronic platform, serves a critical statutory and administrative function as it ensures that each objection is linked to a specific assessment, assigned a unique reference number, and bears an official time stamp indicating the precise date and time of lodgment. These features provide the necessary transparency and certainty in the computation of timelines and tracking of objections under Section 51(11) of the Act. By contrast, an objection transmitted through other means, such as personal or departmental email lacks these essential attributes. It is incapable of generating an auditable trail and exposes the process to ambiguity, dispute, and potential abuse

In light of these findings, the High Court set aside the Tribunal’s decision and directed that the matter be referred to the Tax Appeals Tribunal for a fresh hearing and determination on the merits of the taxpayer’s appeal.

Key Implications

For taxpayers and tax practitioners, the ruling serves as a critical reminder that substantive justice in tax disputes is contingent upon procedural precision. An otherwise meritorious objection may be rendered void if not lodged through itax, thereby extinguishing the taxpayer’s right to be heard. Practitioners must therefore ensure that all filings are processed through iTax.

The decision will enhance traceability and transparency in tax assessments and tax objections, in compliance with the timelines set under the Tax procedures Act. Furthermore, it reinforces the vital principle that tax administration must be transparent and serves as a cautionary precedent, highlighting that procedural non-compliance, even when unintentional, can extinguish a taxpayer’s right to dispute an assessment.