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

Thu Mar 23 11:49:19 EAT 2017

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 at 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 at fb.com
> 
> 
> 
> On Mar 23, 2017, at 6:24 AM, Ahmed Mohamed Maawy via kictanet <kictanet at 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 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
>>> 
>>> 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 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-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?
>>>>> 
>>>>> 
>>>>> _______________________________________________
>>>>> kictanet mailing list
>>>>> kictanet at 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.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 at 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 at 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/ultimateprogramer%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.
>> 
>> 
>> 
>> -- 
>> Ahmed Maawy
>> Principal Product Management Specialist - Al Jazeera Media Network
>> Skype: ultimateprogramer
>> _______________________________________________
>> kictanet mailing list
>> kictanet at 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.
> _______________________________________________
> kictanet mailing list
> kictanet at 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.
-------------- next part --------------
An HTML attachment was scrubbed...
URL: <https://lists.kictanet.or.ke/pipermail/kictanet/attachments/20170323/cf57890d/attachment.htm>