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<div>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.</div>
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<div id="AppleMailSignature">It's also important to clarify that Facebook pays all taxes that are assessed.</div>
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<div id="AppleMailSignature">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.</div>
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<div id="AppleMailSignature">Best,</div>
<div id="AppleMailSignature">Ebele<br>
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<span style="background-color: rgba(255, 255, 255, 0); font-size: 13pt;">Ebele Okobi </span><span style="background-color: rgba(255, 255, 255, 0); font-size: 13pt;">| Public Policy Director, Africa</span><br>
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On Mar 23, 2017, at 6:24 AM, Ahmed Mohamed Maawy via kictanet <<a href="mailto:kictanet@lists.kictanet.or.ke">kictanet@lists.kictanet.or.ke</a>> wrote:<br>
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<div>As much as I agree with you Mr. Ali but there is one very good point Patrick has raised.<br>
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You can only be given the respect of a preacher if you actually practice what you preach for.<br>
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<div class="gmail_quote">On Thu, Mar 23, 2017 at 8:46 AM, Ali Hussein via kictanet
<span dir="ltr"><<a href="mailto:kictanet@lists.kictanet.or.ke" target="_blank">kictanet@lists.kictanet.or.ke</a>></span> wrote:<br>
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<div class="gmail_default"><font face="georgia, serif">Patrick</font></div>
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<div class="gmail_default"><font face="georgia, serif">You raise an interesting issue. However that should not divert us from the main point that Victor is making.</font></div>
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<div class="gmail_default"><font face="georgia, serif">Are multi-nationals paying their fair share of taxes? </font></div>
<div class="gmail_default"><font face="georgia, serif"><br>
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<div class="gmail_default"><font face="georgia, serif">Here' an interesting story that is related to this. </font></div>
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<div class="gmail_default"><a href="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=" target="_blank"><font face="georgia, serif">Apple's
tax headaches</font></a></div>
<div class="gmail_default"><font face="georgia, serif"><br>
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<div class="gmail_default"><font face="georgia, serif">This problem emanates from the Principle of
<a href="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=" target="_blank">
Transfer Pricing.</a> In a nutshell Transfer Price is the <b>price</b> at which divisions of a company transact with each other, such as the trade of supplies or labor between departments. <b>Transfer prices </b>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:-</font></div>
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<div class="gmail_default"><font face="georgia, serif">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. :-)</font></div>
<div class="gmail_default"><font face="georgia, serif"><br>
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<div class="gmail_default"><font face="georgia, serif">In Apple's case they even went ahead and negotiated a minimum tax of 3%!!! </font></div>
<div class="gmail_default"><font face="georgia, serif"><br>
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<div class="gmail_default"><font face="georgia, serif">We are all equal..Except others are more equal..</font></div>
<img src="http://t.sidekickopen16.com/e1t/o/5/f18dQhb0S7ks8dDMPbW2n0x6l2B9gXrN7sKj6v4LNdFMd_KMKRbM7xW4Wzv6P2zlZNzW26tGP91k1H6H0?si=6190904865718272&pi=4bc73cd5-edef-4e21-97d5-ef9ca6509702" style="display:none!important" width="1" height="1">
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<p style="margin:0in 0in 0pt"><b><font size="2" face="georgia, serif">Ali Hussein</font></b></p>
<p style="margin:0in 0in 0pt"><b><font size="2" face="georgia, serif">Principal</font></b></p>
<p style="margin:0in 0in 0pt"><font size="2" face="georgia, serif"><b>Hussein & Associates</b></font></p>
<font size="2" face="georgia, serif"></font>
<p style="margin:0in 0in 0pt"><font size="2" face="georgia, serif"> </font></p>
<p style="margin:0in 0in 0pt"><font size="2"><span style="font-family:georgia,serif"><span>T<font size="2">el: +254 713 60<font size="2">1113</font></font><br>
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<p style="margin:0in 0in 0pt"><font size="2"><span style="font-family:georgia,serif"><span>Twitter: @AliHKassim</span><span></span></span></font></p>
<font size="2"><span style="font-family:georgia,serif"></span></font>
<p style="margin:0in 0in 0pt"><font size="2"><span style="font-family:georgia,serif"><span>Skype: abu-jomo</span></span></font></p>
<p style="margin:0in 0in 0pt"><font size="2"><span style="font-family:georgia,serif"><span>LinkedIn:
<a href="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=" target="_blank">
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<span style="font-size:9pt;font-family:georgia;color:black">13th Floor , Delta Towers, Oracle Wing,</span><span style="font-size:9.5pt;font-family:arial"></span></p>
<p style="font-size:small;margin:0cm 0cm 0.0001pt;background-image:initial;background-position:initial;background-repeat:initial">
<span style="font-size:9pt;font-family:georgia;color:black">Chiromo Road, Westlands,</span><span style="font-size:9.5pt;font-family:arial"></span></p>
<p style="font-size:small;margin:0cm 0cm 0.0001pt;background-image:initial;background-position:initial;background-repeat:initial">
<span style="font-size:9pt;font-family:georgia;color:black">Nairobi, Kenya.</span></p>
<font size="2"><span style="font-family:georgia,serif"><span><br>
<font size="1">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.</font></span></span></font><span style="font-family:"baskerville old face",serif;font-size:11pt"></span><span style="font-size:11pt"></span>
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<div class="h5">On Thu, Mar 23, 2017 at 8:05 AM, Patrick Mathenge via kictanet <span dir="ltr">
<<a href="mailto:kictanet@lists.kictanet.or.ke" target="_blank">kictanet@lists.kictanet.or.ke</a><wbr>></span> wrote:<br>
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<div dir="auto">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.
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<div dir="auto">Regards,</div>
<div dir="auto">Patrick</div>
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<div class="m_-8863540838117504595gmail-h5">On 23 Mar 2017 7:05 AM, "Victor Kapiyo via kictanet" <<a href="mailto:kictanet@lists.kictanet.or.ke" target="_blank">kictanet@lists.kictanet.or.ke</a><wbr>> wrote:<br type="attribution">
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Dear Listers,</p>
<p style="margin:1.5rem 0px 0px;padding:0px;border:0px;font-family:"pt serif","times new roman",times,serif;font-size:1rem;color:rgb(77,77,77)">
<span style="font-size:1rem">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</span><span style="font-size:1rem"> Kenya Revenue Authority (KRA)
told MPs Tuesday that Uber had paid Sh30 million in taxes since 2014.</span><br>
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<a href="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=" target="_blank">http://www.businessdailyafrica<wbr>.com/corporate/MPs-question-Ub<wbr>er-s-Sh30-million-tax-payment/<wbr>539550-3858808-jc0mvaz/index.<wbr>html</a>
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<div dir="auto">Just how much do companies such as Uber, Google, Facebook, Twitter etc. make from Kenya, and how much do they remit in taxes locally?</div>
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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.<br>
<br>
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.<br>
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<div dir="ltr"><b>Ahmed Maawy</b><br>
Principal Product Management Specialist - Al Jazeera Media Network<br>
Skype: ultimateprogramer<br>
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<span>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.</span><br>
<span></span><br>
<span>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.</span></div>
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