<div dir="ltr"><div class="gmail_default"><font face="georgia, serif">Patrick</font></div><div class="gmail_default"><font face="georgia, serif"><br></font></div><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><div class="gmail_default"><font face="georgia, serif"><br></font></div><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></font></div><div class="gmail_default"><font face="georgia, serif">Here' an interesting story that is related to this. </font></div><div class="gmail_default"><font face="georgia, serif"><br></font></div><div class="gmail_default"><a href="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"><font face="georgia, serif">Apple's tax headaches</font></a></div><div class="gmail_default"><font face="georgia, serif"><br></font></div><div class="gmail_default"><font face="georgia, serif">This problem emanates from the Principle of <a href="https://en.wikipedia.org/wiki/Transfer_pricing"> 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><div class="gmail_default"><font face="georgia, serif"><br></font></div><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></font></div><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></font></div><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" height="1" width="1"><div class="gmail_extra"><div><div class="gmail_signature"><div dir="ltr"><div><div dir="ltr"><div><div dir="ltr"><div><div dir="ltr"><div><div dir="ltr"><div dir="ltr"><p style="margin:0in 0in 0pt"><b><font face="georgia, serif" size="2"><br></font></b></p><p style="margin:0in 0in 0pt"><b><font face="georgia, serif" size="2">Ali
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<br><div class="gmail_quote">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>></span> wrote:<br><blockquote class="gmail_quote" style="margin:0px 0px 0px 0.8ex;border-left:1px solid rgb(204,204,204);padding-left:1ex"><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.<div dir="auto"><br></div><div dir="auto">Regards,</div><div dir="auto">Patrick</div></div><div class="gmail_extra"><br><div class="gmail_quote"><div><div class="gmail-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"></div></div><blockquote class="gmail_quote" style="margin:0px 0px 0px 0.8ex;border-left:1px solid rgb(204,204,204);padding-left:1ex"><div><div class="gmail-h5"><div dir="auto"><div dir="auto"><div style="margin:0px;padding:0px;border:0px;font-family:sans-serif;font-size:11.9px;background-color:rgb(255,255,255)" dir="auto"><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)">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></p></div></div><div dir="auto"><br></div><a href="http://www.businessdailyafrica.com/corporate/MPs-question-Uber-s-Sh30-million-tax-payment/539550-3858808-jc0mvaz/index.html" target="_blank">http://www.businessdailyafrica<wbr>.com/corporate/MPs-question-<wbr>Uber-s-Sh30-million-tax-<wbr>payment/539550-3858808-<wbr>jc0mvaz/index.html</a><div dir="auto"><br></div><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><div dir="auto"><br></div></div>
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