Re: [kictanet] MPs question Uber's 'small' Sh30 million tax payment in three years
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 <https://www.forbes.com/sites/kellyphillipserb/2016/08/30/apple-found-to-have-received-illegal-tax-benefits-ordered-to-pay-14-5-billion-in-back-taxes/#579b55995754> This problem emanates from the Principle of Transfer Pricing. <https://en.wikipedia.org/wiki/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 <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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KICTANetiquette : Adhere to the same standards of acceptable behaviors online that you follow in real life: respect people's times and bandwidth, share knowledge, don't flame or abuse or personalize, respect privacy, do not spam, do not market your wares or qualifications.
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. <https://mailtrack.io/> Sent with Mailtrack <https://mailtrack.io/install?source=signature&lang=en&referral=jnjogu@gmail.com&idSignature=22> 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 <https://www.forbes.com/sites/kellyphillipserb/2016/08/30/apple-found-to-have-received-illegal-tax-benefits-ordered-to-pay-14-5-billion-in-back-taxes/#579b55995754>
This problem emanates from the Principle of Transfer Pricing. <https://en.wikipedia.org/wiki/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 <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-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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KICTANetiquette : Adhere to the same standards of acceptable behaviors online that you follow in real life: respect people's times and bandwidth, share knowledge, don't flame or abuse or personalize, respect privacy, do not spam, do not market your wares or qualifications.
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KICTANetiquette : Adhere to the same standards of acceptable behaviors online that you follow in real life: respect people's times and bandwidth, share knowledge, don't flame or abuse or personalize, respect privacy, do not spam, do not market your wares or qualifications.
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KICTANetiquette : Adhere to the same standards of acceptable behaviors online that you follow in real life: respect people's times and bandwidth, share knowledge, don't flame or abuse or personalize, respect privacy, do not spam, do not market your wares or qualifications.
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-millio...
Just how much do companies such as Uber, Google, Facebook, Twitter etc. make from Kenya, and how much do they remit in taxes locally?
_______________________________________________ kictanet mailing list kictanet@lists.kictanet.or.ke https://lists.kictanet.or.ke/mailman/listinfo/kictanet Twitter: http://twitter.com/kictanet Facebook: https://www.facebook.com/KICTANet/
Unsubscribe or change your options at https://lists.kictanet.or.ke/mailman/options/kictanet/kabiromathenge%40gmail...
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KICTANetiquette : Adhere to the same standards of acceptable behaviors online that you follow in real life: respect people's times and bandwidth, share knowledge, don't flame or abuse or personalize, respect privacy, do not spam, do not market your wares or qualifications.
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KICTANetiquette : Adhere to the same standards of acceptable behaviors online that you follow in real life: respect people's times and bandwidth, share knowledge, don't flame or abuse or personalize, respect privacy, do not spam, do not market your wares or qualifications.
_______________________________________________ kictanet mailing list kictanet@lists.kictanet.or.ke https://lists.kictanet.or.ke/mailman/listinfo/kictanet Twitter: http://twitter.com/kictanet Facebook: https://www.facebook.com/KICTANet/
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The Kenya ICT Action Network (KICTANet) is a multi-stakeholder platform for people and institutions interested and involved in ICT policy and regulation. The network aims to act as a catalyst for reform in the ICT sector in support of the national aim of ICT enabled growth and development.
KICTANetiquette : Adhere to the same standards of acceptable behaviors online that you follow in real life: respect people's times and bandwidth, share knowledge, don't flame or abuse or personalize, respect privacy, do not spam, do not market your wares or qualifications.
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.
<https://mailtrack.io/> Sent with Mailtrack <https://mailtrack.io/install?source=signature&lang=en&referral=jnjogu@gmail.com&idSignature=22>
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 <https://www.forbes.com/sites/kellyphillipserb/2016/08/30/apple-found-to-have-received-illegal-tax-benefits-ordered-to-pay-14-5-billion-in-back-taxes/#579b55995754>
This problem emanates from the Principle of Transfer Pricing. <https://en.wikipedia.org/wiki/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 <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-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?
_______________________________________________ kictanet mailing list kictanet@lists.kictanet.or.ke https://lists.kictanet.or.ke/mailman/listinfo/kictanet Twitter: http://twitter.com/kictanet Facebook: https://www.facebook.com/KICTANet/
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The Kenya ICT Action Network (KICTANet) is a multi-stakeholder platform for people and institutions interested and involved in ICT policy and regulation. The network aims to act as a catalyst for reform in the ICT sector in support of the national aim of ICT enabled growth and development.
KICTANetiquette : Adhere to the same standards of acceptable behaviors online that you follow in real life: respect people's times and bandwidth, share knowledge, don't flame or abuse or personalize, respect privacy, do not spam, do not market your wares or qualifications.
_______________________________________________ kictanet mailing list kictanet@lists.kictanet.or.ke https://lists.kictanet.or.ke/mailman/listinfo/kictanet Twitter: http://twitter.com/kictanet Facebook: https://www.facebook.com/KICTANet/
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The Kenya ICT Action Network (KICTANet) is a multi-stakeholder platform for people and institutions interested and involved in ICT policy and regulation. The network aims to act as a catalyst for reform in the ICT sector in support of the national aim of ICT enabled growth and development.
KICTANetiquette : Adhere to the same standards of acceptable behaviors online that you follow in real life: respect people's times and bandwidth, share knowledge, don't flame or abuse or personalize, respect privacy, do not spam, do not market your wares or qualifications.
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The Kenya ICT Action Network (KICTANet) is a multi-stakeholder platform for people and institutions interested and involved in ICT policy and regulation. The network aims to act as a catalyst for reform in the ICT sector in support of the national aim of ICT enabled growth and development.
KICTANetiquette : Adhere to the same standards of acceptable behaviors online that you follow in real life: respect people's times and bandwidth, share knowledge, don't flame or abuse or personalize, respect privacy, do not spam, do not market your wares or qualifications.
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The Kenya ICT Action Network (KICTANet) is a multi-stakeholder platform for people and institutions interested and involved in ICT policy and regulation. The network aims to act as a catalyst for reform in the ICT sector in support of the national aim of ICT enabled growth and development.
KICTANetiquette : Adhere to the same standards of acceptable behaviors online that you follow in real life: respect people's times and bandwidth, share knowledge, don't flame or abuse or personalize, respect privacy, do not spam, do not market your wares or qualifications.
-- Best regards, Odhiambo WASHINGTON, Nairobi,KE +254 7 3200 0004/+254 7 2274 3223 "Oh, the cruft."
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-millio...
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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As much as I agree with you Mr. Ali but there is one very good point Patrick has raised. You can only be given the respect of a preacher if you actually practice what you preach for. 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 <https://www.forbes.com/sites/kellyphillipserb/2016/08/30/apple-found-to-have-received-illegal-tax-benefits-ordered-to-pay-14-5-billion-in-back-taxes/#579b55995754>
This problem emanates from the Principle of Transfer Pricing. <https://en.wikipedia.org/wiki/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 <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-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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-- *Ahmed Maawy* Principal Product Management Specialist - Al Jazeera Media Network Skype: ultimateprogramer
This is a very interesting and timely discussion. I think it's important to clarify that it is not Facebook's position to withhold payment of taxes assessed, on the basis of subjective opinions of how validly assessed tax revenue is allocated. A company's obligation is to pay taxes as assessed, full stop, and it's the right/duty of citizens to then hold their governments to account. It's also important to clarify that Facebook pays all taxes that are assessed. That said, it's clear that global tax regimes have not evolved to keep pace with the nature of business today, and that governments have an opportunity/responsibility to work together to create a globally consistent taxation regime that doesn't stifle innovation, that doesn't choke progress/entrepreneurship/investment in emerging markets, and which is fair. Best, Ebele Ebele Okobi | Public Policy Director, Africa m. +44 (0) 771 156 1315<tel:+44%20(0)%20771%20156%201315> 10 Brock Street | London<x-apple-data-detectors://0/1> | NW1 3FG ebeleokobi@fb.com<mailto:ebeleokobi@fb.com> [6F376569-CC77-422B-BAD3-794055B1E02B] On Mar 23, 2017, at 6:24 AM, Ahmed Mohamed Maawy via kictanet <kictanet@lists.kictanet.or.ke<mailto:kictanet@lists.kictanet.or.ke>> wrote: As much as I agree with you Mr. Ali but there is one very good point Patrick has raised. You can only be given the respect of a preacher if you actually practice what you preach for. On Thu, Mar 23, 2017 at 8:46 AM, Ali Hussein via kictanet <kictanet@lists.kictanet.or.ke<mailto: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<https://urldefense.proofpoint.com/v2/url?u=https-3A__www.forbes.com_sites_kellyphillipserb_2016_08_30_apple-2Dfound-2Dto-2Dhave-2Dreceived-2Dillegal-2Dtax-2Dbenefits-2Dordered-2Dto-2Dpay-2D14-2D5-2Dbillion-2Din-2Dback-2Dtaxes_-23579b55995754&d=DwMFaQ&c=5VD0RTtNlTh3ycd41b3MUw&r=ArvepG4_wcNu_X9xi3nb_Xa9WsGLVfmK6mwPdVONOTE&m=h4EfGVi0-DNDUVkbzUWkQOOICEzlrxta-qcLsUMe6xU&s=xolCaeFW4HYJ4lK3giEWZjUmx9XahaJqLIi-2V4AsjQ&e=> This problem emanates from the Principle of Transfer Pricing.<https://urldefense.proofpoint.com/v2/url?u=https-3A__en.wikipedia.org_wiki_Transfer-5Fpricing&d=DwMFaQ&c=5VD0RTtNlTh3ycd41b3MUw&r=ArvepG4_wcNu_X9xi3nb_Xa9WsGLVfmK6mwPdVONOTE&m=h4EfGVi0-DNDUVkbzUWkQOOICEzlrxta-qcLsUMe6xU&s=koYyJOZdpmgg7lxMeY3Uu5FuD2z0ZnoNZNJ5kLDXpHc&e=> 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<https://urldefense.proofpoint.com/v2/url?u=http-3A__ke.linkedin.com_in_alihkassim&d=DwMFaQ&c=5VD0RTtNlTh3ycd41b3MUw&r=ArvepG4_wcNu_X9xi3nb_Xa9WsGLVfmK6mwPdVONOTE&m=h4EfGVi0-DNDUVkbzUWkQOOICEzlrxta-qcLsUMe6xU&s=LbDpFdVDiSDbUJ9esnqvIb706-IFpUI92_qHOw1RMX0&e=><https://urldefense.proofpoint.com/v2/url?u=http-3A__ke.linkedin.com_in_alihkassim&d=DwMFaQ&c=5VD0RTtNlTh3ycd41b3MUw&r=ArvepG4_wcNu_X9xi3nb_Xa9WsGLVfmK6mwPdVONOTE&m=h4EfGVi0-DNDUVkbzUWkQOOICEzlrxta-qcLsUMe6xU&s=LbDpFdVDiSDbUJ9esnqvIb706-IFpUI92_qHOw1RMX0&e=> 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<mailto: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<mailto: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<https://urldefense.proofpoint.com/v2/url?u=http-3A__www.businessdailyafrica.com_corporate_MPs-2Dquestion-2DUber-2Ds-2DSh30-2Dmillion-2Dtax-2Dpayment_539550-2D3858808-2Djc0mvaz_index.html&d=DwMFaQ&c=5VD0RTtNlTh3ycd41b3MUw&r=ArvepG4_wcNu_X9xi3nb_Xa9WsGLVfmK6mwPdVONOTE&m=h4EfGVi0-DNDUVkbzUWkQOOICEzlrxta-qcLsUMe6xU&s=o4gT6XmUsw1lzyTYdrbTTyhLBNVU1_7aumJPvfokCmI&e=> Just how much do companies such as Uber, Google, Facebook, Twitter etc. make from Kenya, and how much do they remit in taxes locally? _______________________________________________ kictanet mailing list kictanet@lists.kictanet.or.ke<mailto:kictanet@lists.kictanet.or.ke> https://lists.kictanet.or.ke/mailman/listinfo/kictanet<https://urldefense.proofpoint.com/v2/url?u=https-3A__lists.kictanet.or.ke_mailman_listinfo_kictanet&d=DwMFaQ&c=5VD0RTtNlTh3ycd41b3MUw&r=ArvepG4_wcNu_X9xi3nb_Xa9WsGLVfmK6mwPdVONOTE&m=h4EfGVi0-DNDUVkbzUWkQOOICEzlrxta-qcLsUMe6xU&s=K0c0z1EMq_p2t2Nav-HzDJCmJ9XWIuN_QAkIdfbr_es&e=> Twitter: http://twitter.com/kictanet<https://urldefense.proofpoint.com/v2/url?u=http-3A__twitter.com_kictanet&d=DwMFaQ&c=5VD0RTtNlTh3ycd41b3MUw&r=ArvepG4_wcNu_X9xi3nb_Xa9WsGLVfmK6mwPdVONOTE&m=h4EfGVi0-DNDUVkbzUWkQOOICEzlrxta-qcLsUMe6xU&s=F6L_G90KJ68YM1PUI46XQnB3jEaOXyVUq19enznUXqU&e=> Facebook: https://www.facebook.com/KICTANet/ Unsubscribe or change your options at https://lists.kictanet.or.ke/mailman/options/kictanet/kabiromathenge%40gmail.com<https://urldefense.proofpoint.com/v2/url?u=https-3A__lists.kictanet.or.ke_mailman_options_kictanet_kabiromathenge-2540gmail.com&d=DwMFaQ&c=5VD0RTtNlTh3ycd41b3MUw&r=ArvepG4_wcNu_X9xi3nb_Xa9WsGLVfmK6mwPdVONOTE&m=h4EfGVi0-DNDUVkbzUWkQOOICEzlrxta-qcLsUMe6xU&s=KR9zuEoqQ-wExpjLnlFWi-Ut0nHnBjB47PeVkPtgXVM&e=> The Kenya ICT Action Network (KICTANet) is a multi-stakeholder platform for people and institutions interested and involved in ICT policy and regulation. 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KICTANetiquette : Adhere to the same standards of acceptable behaviors online that you follow in real life: respect people's times and bandwidth, share knowledge, don't flame or abuse or personalize, respect privacy, do not spam, do not market your wares or qualifications. -- Ahmed Maawy Principal Product Management Specialist - Al Jazeera Media Network Skype: ultimateprogramer _______________________________________________ kictanet mailing list kictanet@lists.kictanet.or.ke<mailto:kictanet@lists.kictanet.or.ke> https://urldefense.proofpoint.com/v2/url?u=https-3A__lists.kictanet.or.ke_mailman_listinfo_kictanet&d=DwICAg&c=5VD0RTtNlTh3ycd41b3MUw&r=ArvepG4_wcNu_X9xi3nb_Xa9WsGLVfmK6mwPdVONOTE&m=h4EfGVi0-DNDUVkbzUWkQOOICEzlrxta-qcLsUMe6xU&s=K0c0z1EMq_p2t2Nav-HzDJCmJ9XWIuN_QAkIdfbr_es&e= Twitter: https://urldefense.proofpoint.com/v2/url?u=http-3A__twitter.com_kictanet&d=DwICAg&c=5VD0RTtNlTh3ycd41b3MUw&r=ArvepG4_wcNu_X9xi3nb_Xa9WsGLVfmK6mwPdVONOTE&m=h4EfGVi0-DNDUVkbzUWkQOOICEzlrxta-qcLsUMe6xU&s=F6L_G90KJ68YM1PUI46XQnB3jEaOXyVUq19enznUXqU&e= Facebook: https://www.facebook.com/KICTANet/ Unsubscribe or change your options at https://urldefense.proofpoint.com/v2/url?u=https-3A__lists.kictanet.or.ke_mailman_options_kictanet_ebeleokobi-2540fb.com&d=DwICAg&c=5VD0RTtNlTh3ycd41b3MUw&r=ArvepG4_wcNu_X9xi3nb_Xa9WsGLVfmK6mwPdVONOTE&m=h4EfGVi0-DNDUVkbzUWkQOOICEzlrxta-qcLsUMe6xU&s=yKStc-CwgXImcEtBfxPnEgDD-yakm8TQ-5gM46dDCy0&e= The Kenya ICT Action Network (KICTANet) is a multi-stakeholder platform for people and institutions interested and involved in ICT policy and regulation. The network aims to act as a catalyst for reform in the ICT sector in support of the national aim of ICT enabled growth and development. KICTANetiquette : Adhere to the same standards of acceptable behaviors online that you follow in real life: respect people's times and bandwidth, share knowledge, don't flame or abuse or personalize, respect privacy, do not spam, do not market your wares or qualifications.
Ebele Exactly! The key point here is as assessed, full stop. 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 11:07 AM, Ebele Okobi via kictanet <kictanet@lists.kictanet.or.ke> wrote:
This is a very interesting and timely discussion. I think it's important to clarify that it is not Facebook's position to withhold payment of taxes assessed, on the basis of subjective opinions of how validly assessed tax revenue is allocated. A company's obligation is to pay taxes as assessed, full stop, and it's the right/duty of citizens to then hold their governments to account.
It's also important to clarify that Facebook pays all taxes that are assessed.
That said, it's clear that global tax regimes have not evolved to keep pace with the nature of business today, and that governments have an opportunity/responsibility to work together to create a globally consistent taxation regime that doesn't stifle innovation, that doesn't choke progress/entrepreneurship/investment in emerging markets, and which is fair.
Best, Ebele
Ebele Okobi | Public Policy Director, Africa m. +44 (0) 771 156 1315 10 Brock Street | London | NW1 3FG ebeleokobi@fb.com
On Mar 23, 2017, at 6:24 AM, Ahmed Mohamed Maawy via kictanet <kictanet@lists.kictanet.or.ke> wrote:
As much as I agree with you Mr. Ali but there is one very good point Patrick has raised.
You can only be given the respect of a preacher if you actually practice what you preach for.
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-millio...
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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KICTANetiquette : Adhere to the same standards of acceptable behaviors online that you follow in real life: respect people's times and bandwidth, share knowledge, don't flame or abuse or personalize, respect privacy, do not spam, do not market your wares or qualifications.
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KICTANetiquette : Adhere to the same standards of acceptable behaviors online that you follow in real life: respect people's times and bandwidth, share knowledge, don't flame or abuse or personalize, respect privacy, do not spam, do not market your wares or qualifications.
_______________________________________________ kictanet mailing list kictanet@lists.kictanet.or.ke https://lists.kictanet.or.ke/mailman/listinfo/kictanet Twitter: http://twitter.com/kictanet Facebook: https://www.facebook.com/KICTANet/
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The Kenya ICT Action Network (KICTANet) is a multi-stakeholder platform for people and institutions interested and involved in ICT policy and regulation. The network aims to act as a catalyst for reform in the ICT sector in support of the national aim of ICT enabled growth and development.
KICTANetiquette : Adhere to the same standards of acceptable behaviors online that you follow in real life: respect people's times and bandwidth, share knowledge, don't flame or abuse or personalize, respect privacy, do not spam, do not market your wares or qualifications.
-- Ahmed Maawy Principal Product Management Specialist - Al Jazeera Media Network Skype: ultimateprogramer _______________________________________________ kictanet mailing list kictanet@lists.kictanet.or.ke https://urldefense.proofpoint.com/v2/url?u=https-3A__lists.kictanet.or.ke_mailman_listinfo_kictanet&d=DwICAg&c=5VD0RTtNlTh3ycd41b3MUw&r=ArvepG4_wcNu_X9xi3nb_Xa9WsGLVfmK6mwPdVONOTE&m=h4EfGVi0-DNDUVkbzUWkQOOICEzlrxta-qcLsUMe6xU&s=K0c0z1EMq_p2t2Nav-HzDJCmJ9XWIuN_QAkIdfbr_es&e= Twitter: https://urldefense.proofpoint.com/v2/url?u=http-3A__twitter.com_kictanet&d=DwICAg&c=5VD0RTtNlTh3ycd41b3MUw&r=ArvepG4_wcNu_X9xi3nb_Xa9WsGLVfmK6mwPdVONOTE&m=h4EfGVi0-DNDUVkbzUWkQOOICEzlrxta-qcLsUMe6xU&s=F6L_G90KJ68YM1PUI46XQnB3jEaOXyVUq19enznUXqU&e= Facebook: https://www.facebook.com/KICTANet/
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KICTANetiquette : Adhere to the same standards of acceptable behaviors online that you follow in real life: respect people's times and bandwidth, share knowledge, don't flame or abuse or personalize, respect privacy, do not spam, do not market your wares or qualifications.
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KICTANetiquette : Adhere to the same standards of acceptable behaviors online that you follow in real life: respect people's times and bandwidth, share knowledge, don't flame or abuse or personalize, respect privacy, do not spam, do not market your wares or qualifications.
The one debate that found closure immediately. On 23 March 2017 at 11:49, Ali Hussein via kictanet < kictanet@lists.kictanet.or.ke> wrote:
Ebele
Exactly! The key point here is *as assessed, full stop. *
*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 11:07 AM, Ebele Okobi via kictanet < kictanet@lists.kictanet.or.ke> wrote:
This is a very interesting and timely discussion. I think it's important to clarify that it is not Facebook's position to withhold payment of taxes assessed, on the basis of subjective opinions of how validly assessed tax revenue is allocated. A company's obligation is to pay taxes as assessed, full stop, and it's the right/duty of citizens to then hold their governments to account.
It's also important to clarify that Facebook pays all taxes that are assessed.
That said, it's clear that global tax regimes have not evolved to keep pace with the nature of business today, and that governments have an opportunity/responsibility to work together to create a globally consistent taxation regime that doesn't stifle innovation, that doesn't choke progress/entrepreneurship/investment in emerging markets, and which is fair.
Best, Ebele
Ebele Okobi | Public Policy Director, Africa
m. +44 (0) 771 156 1315 <+44%20(0)%20771%20156%201315>
10 Brock Street | London | NW1 3FG
ebeleokobi@fb.com
[image: 6F376569-CC77-422B-BAD3-794055B1E02B]
On Mar 23, 2017, at 6:24 AM, Ahmed Mohamed Maawy via kictanet < kictanet@lists.kictanet.or.ke> wrote:
As much as I agree with you Mr. Ali but there is one very good point Patrick has raised.
You can only be given the respect of a preacher if you actually practice what you preach for.
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.
This problem emanates from the Principle of Transfer Pricing. <https://urldefense.proofpoint.com/v2/url?u=https-3A__en.wikipedia.org_wiki_Transfer-5Fpricing&d=DwMFaQ&c=5VD0RTtNlTh3ycd41b3MUw&r=ArvepG4_wcNu_X9xi3nb_Xa9WsGLVfmK6mwPdVONOTE&m=h4EfGVi0-DNDUVkbzUWkQOOICEzlrxta-qcLsUMe6xU&s=koYyJOZdpmgg7lxMeY3Uu5FuD2z0ZnoNZNJ5kLDXpHc&e=> 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 <https://urldefense.proofpoint.com/v2/url?u=http-3A__ke.linkedin.com_in_alihkassim&d=DwMFaQ&c=5VD0RTtNlTh3ycd41b3MUw&r=ArvepG4_wcNu_X9xi3nb_Xa9WsGLVfmK6mwPdVONOTE&m=h4EfGVi0-DNDUVkbzUWkQOOICEzlrxta-qcLsUMe6xU&s=LbDpFdVDiSDbUJ9esnqvIb706-IFpUI92_qHOw1RMX0&e=> <https://urldefense.proofpoint.com/v2/url?u=http-3A__ke.linkedin.com_in_alihkassim&d=DwMFaQ&c=5VD0RTtNlTh3ycd41b3MUw&r=ArvepG4_wcNu_X9xi3nb_Xa9WsGLVfmK6mwPdVONOTE&m=h4EfGVi0-DNDUVkbzUWkQOOICEzlrxta-qcLsUMe6xU&s=LbDpFdVDiSDbUJ9esnqvIb706-IFpUI92_qHOw1RMX0&e=>
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-Ub er-s-Sh30-million-tax-payment/539550-3858808-jc0mvaz/index.html <https://urldefense.proofpoint.com/v2/url?u=http-3A__www.businessdailyafrica.com_corporate_MPs-2Dquestion-2DUber-2Ds-2DSh30-2Dmillion-2Dtax-2Dpayment_539550-2D3858808-2Djc0mvaz_index.html&d=DwMFaQ&c=5VD0RTtNlTh3ycd41b3MUw&r=ArvepG4_wcNu_X9xi3nb_Xa9WsGLVfmK6mwPdVONOTE&m=h4EfGVi0-DNDUVkbzUWkQOOICEzlrxta-qcLsUMe6xU&s=o4gT6XmUsw1lzyTYdrbTTyhLBNVU1_7aumJPvfokCmI&e=>
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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KICTANetiquette : Adhere to the same standards of acceptable behaviors online that you follow in real life: respect people's times and bandwidth, share knowledge, don't flame or abuse or personalize, respect privacy, do not spam, do not market your wares or qualifications.
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The Kenya ICT Action Network (KICTANet) is a multi-stakeholder platform for people and institutions interested and involved in ICT policy and regulation. The network aims to act as a catalyst for reform in the ICT sector in support of the national aim of ICT enabled growth and development.
KICTANetiquette : Adhere to the same standards of acceptable behaviors online that you follow in real life: respect people's times and bandwidth, share knowledge, don't flame or abuse or personalize, respect privacy, do not spam, do not market your wares or qualifications.
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The Kenya ICT Action Network (KICTANet) is a multi-stakeholder platform for people and institutions interested and involved in ICT policy and regulation. The network aims to act as a catalyst for reform in the ICT sector in support of the national aim of ICT enabled growth and development.
KICTANetiquette : Adhere to the same standards of acceptable behaviors online that you follow in real life: respect people's times and bandwidth, share knowledge, don't flame or abuse or personalize, respect privacy, do not spam, do not market your wares or qualifications.
-- *Ahmed Maawy* Principal Product Management Specialist - Al Jazeera Media Network Skype: ultimateprogramer
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The Kenya ICT Action Network (KICTANet) is a multi-stakeholder platform for people and institutions interested and involved in ICT policy and regulation. The network aims to act as a catalyst for reform in the ICT sector in support of the national aim of ICT enabled growth and development.
KICTANetiquette : Adhere to the same standards of acceptable behaviors online that you follow in real life: respect people's times and bandwidth, share knowledge, don't flame or abuse or personalize, respect privacy, do not spam, do not market your wares or qualifications.
_______________________________________________ kictanet mailing list kictanet@lists.kictanet.or.ke https://lists.kictanet.or.ke/mailman/listinfo/kictanet Twitter: http://twitter.com/kictanet Facebook: https://www.facebook.com/KICTANet/
Unsubscribe or change your options at https://lists.kictanet.or.ke/ mailman/options/kictanet/info%40alyhussein.com
The Kenya ICT Action Network (KICTANet) is a multi-stakeholder platform for people and institutions interested and involved in ICT policy and regulation. The network aims to act as a catalyst for reform in the ICT sector in support of the national aim of ICT enabled growth and development.
KICTANetiquette : Adhere to the same standards of acceptable behaviors online that you follow in real life: respect people's times and bandwidth, share knowledge, don't flame or abuse or personalize, respect privacy, do not spam, do not market your wares or qualifications.
_______________________________________________ kictanet mailing list kictanet@lists.kictanet.or.ke https://lists.kictanet.or.ke/mailman/listinfo/kictanet Twitter: http://twitter.com/kictanet Facebook: https://www.facebook.com/KICTANet/
Unsubscribe or change your options at https://lists.kictanet.or.ke/ mailman/options/kictanet/odhiambo%40gmail.com
The Kenya ICT Action Network (KICTANet) is a multi-stakeholder platform for people and institutions interested and involved in ICT policy and regulation. The network aims to act as a catalyst for reform in the ICT sector in support of the national aim of ICT enabled growth and development.
KICTANetiquette : Adhere to the same standards of acceptable behaviors online that you follow in real life: respect people's times and bandwidth, share knowledge, don't flame or abuse or personalize, respect privacy, do not spam, do not market your wares or qualifications.
-- Best regards, Odhiambo WASHINGTON, Nairobi,KE +254 7 3200 0004/+254 7 2274 3223 "Oh, the cruft."
participants (5)
-
Ahmed Mohamed Maawy
-
Ali Hussein
-
Ebele Okobi
-
Job Muriuki
-
Odhiambo Washington