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"id": 463647,
"url": "https://info.mzalendo.com/api/v0.1/hansard/entries/463647/?format=api",
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"type": "speech",
"speaker_name": "Hon. Waiganjo",
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"speaker": {
"id": 2644,
"legal_name": "John Muriithi Waiganjo",
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"content": "decisions and the taxpayer would probably move to court, but the Civil Procedure Act was very stringent where matters of stay are concerned. You would find that where there is no exclusive department of tax appeals, a taxpayer would necessarily go to a civil court and it was very difficult to get the stay of execution. Mostly, the decisions of the Commissioner would go unchallenged. So, this is a piece of legislation that also makes litigation very easy because an individual taxpayer without even the benefit of an advocate can approach the Tribunal. The manner of filing this appeal is also very easy because all they need to do is to file a statement of facts, the decision of the Commissioner and, of course, the grounds for which they wish to rely. So, it is a Tribunal that will make decisions of the Commissioner of the KRA and the taxpayer very expeditious. Again, we look at the membership of this Tribunal as well. It is properly and well constituted considering that the Chairman gets five years non-renewable and the other members get three years so that, in the event an ordinary member would want to rise to a Chair, there will be continuity. It is a Bill that also looks beyond the term of office of the existing Commissioners. Of concern is when the litigant in this appeal gets an award of costs. The KRA is part of the Government. So, for them, it is not as bad as the taxpayer. When the taxpayer gets an award of costs, he cannot execute it against the Government. He has again to go under the Government Proceedings Act. This is a robbery of sorts from the taxpayer. If you use your Kshs20,000 to go to this Tax Appeal Tribunal, you prosecute your appeal very well, win against the Commissioner and you are awarded costs, you cannot get those awards. You cannot benefit from those costs simply because there is another procedure on Government Proceedings Act that stops the taxpayer from that. That is the downside of this Bill. But, by and large, it is a good Bill and I support it. I like it when it is out of the Civil Procedure Act. The Civil Procedure Act is also very technical in nature and only advocates understand those procedures. But the manner in which this Bill rolls out the mode in which you can file an appeal and the way you prosecute it, I can see the taxpayer getting a very easy time with the Bill. With regard to Section 29(1), when you file the appeal, obviously, it goes to the registry of the Tribunal and it becomes public record. But then, Sub-section 10 seems to be saying: “No! Let us keep trade secrets.” Well, constitutionally speaking, that is hindrance of information. In my mind, the Committee should re-look into some of those small issues that would make a very good Bill otherwise be a Bill that also goes back to be against the taxpayer. I am looking at the offences that are clearly spelt out on Part IV of this Bill. Any taxpayer reading Part IV, 31(a), (b), (c) and (d), is clear on the parameters. It is clear on the rights of the taxpayer and the rights of the Commissioner of KRA. But the best thing with this Bill so far, is the simplification of the procedure of the taxpayer in approaching the Tribunal, the prosecution of the appeal and finally, perhaps, the expedition of the decision of the Tribunal. The Tribunal will only deal with tax matters. So, it means then that matters will move much faster and more expeditiously. The fact that it has a membership of 15 to 20-- - It would even be argued that they would better get all the 20 members considering that they need to be moving across the whole country. Therefore, every county will get a panel that is sitting every time. We have seen problems with the Business Premises Rent Tribunal and other tribunals when they go out to sit in different jurisdictions of this The electronic version of the Official Hansard Report is for information purposesonly. A certified version of this Report can be obtained from the Hansard Editor."
}