High Court rules that disorganised evidence can cost taxpayers their case

Introduction

On 21^st July 2026, the High Court delivered an important decision reminding taxpayers that the burden of proof in tax disputes goes beyond merely producing documents. In Income Tax Appeal No. E016 of 2024, the Court held that a taxpayer must provide clear, specific and reconciled evidence to demonstrate that an assessment is incorrect. The Court emphasized that KRA is not required to act as a "forensic accountant" by searching through disorganised records to establish a taxpayer's case. 

Where a taxpayer fails to properly organize and present evidence, the taxpayer fails to discharge its statutory burden of proof and may ultimately lose the dispute.

Caveat

This newsletter has been prepared by RSM (Eastern Africa) Consulting Ltd, and the views are those of the firm, independent of its directors, employees and associates. This newsletter is for general guidance, and does not constitute professional advice. Accordingly, RSM (Eastern Africa) Consulting Ltd, its directors, employees, associates and its agents accept no liability for the consequences of anyone acting, or refraining from acting, in reliance on the information contained herein or for any decision based on it. No part of the newsletter may be reproduced or published without prior written consent. RSM (Eastern Africa) Consulting Ltd is a member firm of RSM, a worldwide network of accounting and consulting firms. RSM does not offer professional services in its own name and each member firm of RSM is a legally separate and independent national firm.