Wash

I wouldn't call them tax thieves.. LOL

Tax Evasion - The illegal non payment or underpayment of tax.

Tax Avoidance - The arrangement of one's financial affairs to minimize tax liability within the law (Just ask The Donald!) :-)

As for Mulika-ing your guess is as good as mine. :-) ALL and I mean ALL Corporates worth their salt (Kenyan, foreign etc) have tax consultants and lawyers on retainer to ensure their tax liabilities are minimized.   

This is not illegal. It is prudent management. The onus is on respective governments to seal such loopholes. The EU is asking Apple to pay $14.5 billion in taxes. Apple will fight this till Kingdom Come. 

And such is the cycle of life..

Ooh..and Wash, I'm my own agent on this.. :-)

Ali Hussein
Principal
Hussein & Associates
+254 0713 601113 

Twitter: @AliHKassim

Skype: abu-jomo

LinkedIn: http://ke.linkedin.com/in/alihkassim


"We are what we repeatedly do. Excellence, therefore, is not an act but a habit."  ~ Aristotle


Sent from my iPad

On 23 Mar 2017, at 10:26 AM, Odhiambo Washington <odhiambo@gmail.com> wrote:

Ali,

Please mulika the tax thieves first, else you just become their agent subconsciously - you mulika the foreign companies which then pay the tax, but does what they pay really help you? Why waste your energy when ultimately it will not be properly accounted for?

On 23 March 2017 at 10:20, Ali Hussein via kictanet <kictanet@lists.kictanet.or.ke> wrote:
Job & Ahmed

I'm not disagreeing.. :-) 

Tax utilization and corruption are very important and we as a citizenry must 'Mulika' these issues. Every day!

However, the issue of Transfer Pricing cannot be explained away by such arguments. They are unfortunately very unrelated. :-) 

Ali Hussein
Principal
Hussein & Associates
+254 0713 601113 

Twitter: @AliHKassim

Skype: abu-jomo

LinkedIn: http://ke.linkedin.com/in/alihkassim


"We are what we repeatedly do. Excellence, therefore, is not an act but a habit."  ~ Aristotle


Sent from my iPad

On 23 Mar 2017, at 9:17 AM, Job Muriuki <muriukin@gmail.com> wrote:

Ali,

What should come first?
Increasing tax collection avenues or ensuring the already collected tax is not misappropriated as is the norm? 

Am also interested in knowing how much taxed these multinational tech companies pay in Kenya and how KRA
collects it considering the use of technology to increase collection is not their strong suit or are unwilling to fully
utilize it for obvious reasons. 


Sent with Mailtrack

Regards,
Job Muriuki,

Skype: heviejob




On Thu, Mar 23, 2017 at 8:46 AM, Ali Hussein via kictanet <kictanet@lists.kictanet.or.ke> wrote:
Patrick

You raise an interesting issue. However that should not divert us from the main point that Victor is making.

Are multi-nationals paying their fair share of taxes? 

Here' an interesting story that is related to this. 

Apple's tax headaches

This problem emanates from the Principle of  Transfer Pricing. In a nutshell Transfer Price is the price at which divisions of a company transact with each other, such as the trade of supplies or labor between departments. Transfer prices are used when individual entities of a larger multi-entity firm are treated and measured as separately run entities. This is where it gets interesting:-

So let's say Multi-National X has an operation in Kenya but all invoicing is done in say Ireland (sound familiar for those who deal with Multi-Nationals in the Tech Space?) but then the said Multi-National also invoices itself (ok, its 'subsidiary') for 'Management Fees' and other 'expenses'. The ultimate effect is that profits declared are at a minimum. And this practice is perfectly legal. :-)

In Apple's case they even went ahead and negotiated a minimum tax of 3%!!! 

We are all equal..Except others are more equal..


Ali Hussein

Principal

Hussein & Associates

 

Tel: +254 713 601113

Twitter: @AliHKassim

Skype: abu-jomo

LinkedIn: http://ke.linkedin.com/in/alihkassim


13th Floor , Delta Towers, Oracle Wing,

Chiromo Road, Westlands,

Nairobi, Kenya.


Any information of a personal nature expressed in this email are purely mine and do not necessarily reflect the official positions of the organizations that I work with.

On Thu, Mar 23, 2017 at 8:05 AM, Patrick Mathenge via kictanet <kictanet@lists.kictanet.or.ke> wrote:
That's quite interesting. However, and with all due respect,if anyone was genuine and honest,  they would address and ensure that the taxes already paid are put into proper use in the first instance. Otherwise it's not in the interest of anyone to pay taxes that more often than not end up in a few people's pockets. Again I wouldn't speak am not speaking for Uber but that's just my very humble opinion, a tax paying Kenyan.

Regards,
Patrick

On 23 Mar 2017 7:05 AM, "Victor Kapiyo via kictanet" <kictanet@lists.kictanet.or.ke> wrote:

Dear Listers,

Parliament has questioned the small amount of tax paid by app-hailing taxi firm Uber, suggesting that the bulk of the profits is repatriated outside the country. The Kenya Revenue Authority (KRA) told MPs Tuesday that Uber had paid Sh30 million in taxes since 2014.


http://www.businessdailyafrica.com/corporate/MPs-question-Uber-s-Sh30-million-tax-payment/539550-3858808-jc0mvaz/index.html

Just how much do companies such as Uber, Google, Facebook, Twitter etc. make from Kenya, and how much do they remit in taxes locally?


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--
Best regards,
Odhiambo WASHINGTON,
Nairobi,KE
+254 7 3200 0004/+254 7 2274 3223
"Oh, the cruft."