There is a statutory limit on when the KRA can collect. If within the statutes of fraud, then there is not statutory limit. Get a calculated break-down on how they arrived at Ksh.200,000. Look through the KRA regulations on collection, have a tax attorney/accountant recompute the amount based on the regulations. Some of these assessments are derived without consideration of what the regulations prescribe. DO NOT BRIBE ANYONE, otherwise you will lose more than the KSH. 200,000

I thought after 7 years you are free. May be not. There must be a limit to how far back that KRA can go. I thought that documents like bank statements etc are only valid for 7 prior years.