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

Thu Mar 23 12:55:58 EAT 2017

The one debate that found closure immediately.

On 23 March 2017 at 11:49, Ali Hussein via kictanet <
kictanet at 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 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 <+44%20(0)%20771%20156%201315>
>
> 10 Brock Street | London | NW1 3FG
>
> ebeleokobi at fb.com
>
> [image: 6F376569-CC77-422B-BAD3-794055B1E02B]
>
> 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
>> <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 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
>>>> <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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>>>>
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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.
>>
>
>
>
> --
> *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.
>
> _______________________________________________
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>
> 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.
>
>
> _______________________________________________
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> 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."
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