The burden of proof in tax cases is very different from criminal and civil cases. In criminal and civil cases, it is based on the popular Latin maxim ”Affirmanti, non neganti, incumbit probation” which simply means that ‘he who alleges must prove’. However, Kenyan tax law provides that in the event of an audit or assessment, the taxpayer must disprove the findings of the tax authority, except in the event of alleged fraud, evasion or willful neglect. Unfortunately, this puts various taxpayers on their back foot, and they end up not providing the requisite information to support their tax position.
In such cases, the revenue authority would issue findings based on available information and documents. They are also at liberty to cross-reference various third-party sources including government records, media, filed returns and information from other tax authorities. On the other hand, taxpayers might not have the requisite documents, or the documents do not correspond to the available information. Therefore, the inability to prove their tax position leads to tax disputes which end up being lost at the Tax Appeals Tribunal and appellate courts. This is because the courts make a determination as to whether the revenue authority made the right decision based on information provided by the taxpayer at the time of assessment.
Since the introduction of eTIMS in 2023, taxpayers are required to ensure compliance with the two main requirements i.e. 1) issuance of eTIMS compliant invoices; and 2) ensuring eTIMS compliant expenses. Individuals and entities alike will be required to file their 2024 returns this year and a key focus for the tax administrator will be eTIMS compliance, specifically, expenses claimed. Therefore, it is paramount that when filing the returns, due care is given to ensure all expenses are eTIMS compliant otherwise, the tax authority will be at liberty to audit and disallow non-compliant expenses thereby increasing your tax liability. Taxpayers are also encouraged to keep a good record of their operations including documents to support their transactions in case of an audit. As the saying goes, "Most people do not plan to fail; they simply fail to plan."
It is important to note that 2024 marks the first year in which taxpayers must file returns under the eTIMS requirement. As such, it is crucial for taxpayers to verify that their sales and purchases are fully eTIMS compliant, ensuring that the values reported match those reflected in the eTIMS system. Both corporate and individual income tax returns must be filed within six months of the end of the financial year. For companies whose financial year ends in December, and for individuals, the filing deadline is June 30, 2025. Additionally, companies are required to pay their balance of tax for the year 2024 by April 20, 2025. This makes it all the more important for taxpayers to ensure their records are accurate and up to date, as any discrepancies could lead to audits or the disallowance of expenses, ultimately increasing their tax liability.
How DigiTax is Stepping In: Your Less Taxing eTIMS Partner
As eTIMS compliance becomes a legal and operational priority for Kenyan businesses, DigiTax has emerged as a reliable ally, offering solutions that bridge the gap between regulation and ease of use. As an approved eTIMS provider, DigiTax has positioned itself as the go-to platform for businesses seeking a stress-free, tech-forward approach to managing tax obligations.
The company offers a streamlined dashboard tailored for small, medium and large businesses looking to issue eTIMS-compliant VAT and non-VAT invoices without needing complex software. Whether you're a freelancer, creative, consultant, small or medium business DigiTax offers a dashboard solution for issuing eTIMS-compliant invoices. With a simple sign up and sign in method, you can generate both VAT and non-VAT sale invoices, credit notes and manage purchases all in one place. The dashboard automatically syncs your invoice data with the revenue authority, ensuring everything you report aligns with what’s in the eTIMS system.
For larger organizations with existing ERP or accounting systems, DigiTax provides ready-to-use system-to-system integration options—including Odoo (versions 15, 16, 17 – Desktop and POS module), QuickBooks (all versions of QuickBooks Desktop UK from 2013 and QB Online), WooCommerce (v8.7 to the latest v8.83), WordPress (v6.3 to 6.7), and PHP (v7.4 to the latest). Its integrations also support Sage (across all versions), SAP Business One, Uza Point, and JamPOS, making it easy for system providers and businesses to automate invoicing and reporting without disrupting their existing workflows.
In addition, DigiTax’s POS-enabled Android app is a practical solution for businesses on the move—enabling instant invoicing, and sales management from any location. For those with backlogs of unfiled invoices, DigiTax also provides a bulk upload service to help businesses quickly regularize their 2024 transactions in line with eTIMS requirements.
By offering a comprehensive suite of tools for businesses of all sizes, DigiTax is helping taxpayers stay audit-ready, reduce risk, and reclaim valuable time—delivering exactly what it promises: a less taxing solution.
Stay Ready, Not Sorry
As the era of eTIMS ushers in stricter compliance standards, it's no longer enough for businesses to simply “file and forget.” A proactive, well-documented approach to tax management is the new norm—and the only way to remain on the right side of audits, assessments, and shifting regulations.
The good news? You don’t have to figure it all out alone. Solutions like DigiTax offer the support and tools you need to stay compliant, efficient, and ahead of deadlines. Whether you’re an individual taxpayer, a growing business, or a large enterprise with complex systems, DigiTax makes it easier.
Let DigiTax handle the taxing side of business, so you can focus on growth.
Key dates to note;
2024 – First year taxpayers must file returns under the eTIMS requirement.
April 20, 2025 – Deadline for companies to pay the balance of tax for the year 2024.
June 30, 2025 – Deadline for filing income tax returns for: Companies with a December year-end Individual taxpayers (Returns must be filed within six months of the end of the financial year)
