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..

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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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