Thank you Cephas and Benson for the insights. This is well received and noted. On Wed, 22 May 2024 at 07:45, Benson Muite via KICTANet < kictanet@lists.kictanet.or.ke> wrote:
On 22/05/2024 07.45, Linda Wairure via KICTANet wrote:
*Dear Listers,*
Welcome to *DAY 3 of the public participation of the Finance Bill, 2024*. Thank you for your continued public participation in this discourse, your contributions have been well received and included in the submissions.
As part of the Kenya ICT Action Network (KICTANet) ongoing efforts to ensure that the *Finance Bill 2024* addresses the needs and concerns of all stakeholders in the *ICT Sector,* we are reaching out to gather your valuable feedback on several key proposals. Your input is crucial in shaping a balanced and effective tax policy.
*Tax Procedures Act (TPA)*
*PROPOSAL 1. Features of an Electronic Tax Invoice*
In the current provision there are no stipulations on the information contained in an Electronic Tax Invoice.**
*Proposed Amendment:* The Finance Bill 2024 specifies that an Electronic Tax Invoice must include:
The words "*TAX INVOICE" *Name, address, and PIN of the supplier and purchaser*, *serial number of the tax invoice*,* date and time of issuance and supply*, *description of the supply in terms of quantity or type of services*, *details of any discount allowed at the time of supply*, *consideration of the supply*, *tax rate charged and total amount of tax charged**and any other prescribed information.**
*Questions:*
1. What concerns do you have about the specified features of an Electronic Tax Invoice and how will this impact your business operations?
Many businesses already are over-burdened with compliance. Not all businesses have a fully digitized workflow - some businesses use barter and do not use cash let alone electronic cash.
Information about exact items purchased, for what price and from whom might also constitute confidential business data that may be of great interest to business competitors. What protective measures have been put in place in the event of a data breach?
A period of adjustment and public sensitization on the process are required. Some example viewpoints from experiences in other countries include:
https://www2.deloitte.com/my/en/pages/tax/articles/e-invoicing-updates.html
https://blog.summitto.com/posts/invoice_reporting_vs_confidential_reporting/
https://publications.iadb.org/publications/english/document/Electronic-Invoi...
https://tax.thomsonreuters.com/blog/e-invoicing-and-tax-compliance-in-an-inc...
2. What additional details or changes would you suggest for the specified features?
Simplifying procedures and integrating them with local business practices may lead to increased tax revenue.
*PROPOSAL 2. Integration of KRA’s Data Management and Reporting System*
The Commissioner is mandated to establish a data management and reporting system and notify selected taxpayers to submit electronic documents.**
*Proposed Amendment:* The Commissioner may issue a written notice requiring integration of a taxpayer's electronic tax system with KRA’s data management system for submitting detailed transaction data, including the names and addresses of payment recipients.
*Question:*
1. What concerns do you have about the mandatory integration with KRA’s data management system and how might this integration affect your business operations?
How will confidential business data be protected?
*PROPOSAL 3. PIN Registration Requirement for Remote Employees*
No express provision currently.
*Proposed Amendment:* Employees working remotely outside Kenya for Kenya-based employers must possess a KRA PIN.
*Question:*
1. How do you view the requirement for remote employees to have a KRA PIN?
This may require international harmonization.
2. What impact do you think this will have on remote employment practices?
*Miscellaneous Fees and Levies Act*
*PROPOSAL 4. Introduction of Eco Levy*
No provision under the current Act.
*Proposed Amendment:* Introduction of an Eco Levy on specific goods manufactured locally or imported, including various ICT apparatus and electronic devices.
*Questions:*
1. What concerns do you have about the introduction of the Eco Levy and how it will impact your business or consumer behavior?
2. What goods should be included or excluded from the Eco Levy, and why?
A more comprehensive recycling plan is needed, including management of biodegradable waste, plastics and other non-biodegradable waste as well as industrial chemical waste.
3. How would you suggest structuring the Eco Levy to achieve its intended goals?
While the intent seems good, the proposed implementation of a fixed amount for a device, irrespective of the size of the device, does not seem aligned with recycling or disposal costs.
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