Executive summary

On 27 October 2025, the High Court of Kenya ruled in Commissioner of Investigation and Enforcement v. Zhao (Income Tax Appeal No. E010 of 2025) that the Commissioner (Appellant) validly lodged a Notice of Objection within the 60-day legally prescribed statutory period. The court based its decision on the finding that the 60-day period starts on the date that a Notice of Objection is lodged through the Kenya Revenue Authority's iTax system.

The High Court overturned the Tax Appeals Tribunal's (TAT) decision, ruling that the Appellant issued the Objection Decision within the correct time period.

Facts

The Appellant issued a tax assessment to Haqing Zhao (the Respondent) on 7 September 2023. The Respondent lodged a Notice of Objection via a letter dated 29 September 2023, which was transmitted via email to the Appellant's officers. On 8 November 2023, the Appellant issued a demand notice of the entire tax assessed, citing failure by the Respondent to formally file their objection on the iTax portal. Following discussions, the Respondent formally filed their Notice of Objection on the iTax portal on 30 November 2023. The Appellant then issued an Objection Decision in response to the Notice of Objection on 29 January 2024.

The Respondent appealed to the TAT on the grounds that the decision was time-barred. The TAT ruled in favor of the Respondent, holding that the Objection Decision by the Appellant was issued outside the 60-day statutory timeline on the basis that the time period started on 29 September 2023, when the email was sent.

The Appellant appealed to the High Court, arguing that the valid Notice of Objection was the one filed on the iTax portal on 30 November 2023, and therefore the Objection Decision dated 29 January 2024 was timely.

Court analysis

The High Court analyzed whether the Notice of Objection sent via email on 29 September 2023 or the one filed on iTax on 30 November 2023 was valid. The court stated that, "The reasoning is simple: just as a tax assessment not generated through the iTax system cannot be deemed a valid assessment under the law, this Court is equally of the view that an objection to a tax assessment must likewise be lodged through the same iTax system to acquire legal validity."

Consequently, the High Court ruled that a Notice of Objection is only valid when filed on the iTax system. Therefore, the valid Notice of Objection was the one filed by Respondent on 30 November 2023 and the Appellants' Objection Decision rendered on 29 January 2024 was issued within the 60-day timeline. The case was subsequently referred back to the TAT for a determination on the merits.

Conclusion

This decision sets a precedent that statutory timelines for a Notice of Objection to a tax assessment are calculated based on the filing of the notice on the iTax system, rather than the physical or email delivery to the tax authority. Although this requirement is not explicit in the Tax Procedures Act, taxpayers are encouraged to lodge their Notices of Objection against tax assessments via the iTax portal.