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
Job Muriuki,
Skype: heviejob
On Thu, Mar 23, 2017 at 8:46 AM, Ali Hussein via kictanet <kictanet@lists.kictanet.or.ke> wrote:
PatrickYou 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.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
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alihkassim
13th Floor , Delta Towers, Oracle Wing,
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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:Unsubscribe or change your options at https://lists.kictanet.or.ke/mThat'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,PatrickOn 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-Ub er-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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