[kictanet] MPs question Uber's 'small' Sh30 million tax payment in three years

Thu Mar 23 09:21:56 EAT 2017

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 at 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 at 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 at 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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>>
>> 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
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>
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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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-- 
*Ahmed Maawy*
Principal Product Management Specialist - Al Jazeera Media Network
Skype: ultimateprogramer
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