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{
    "id": 601954,
    "url": "https://info.mzalendo.com/api/v0.1/hansard/entries/601954/?format=api",
    "text_counter": 202,
    "type": "speech",
    "speaker_name": "Hon. Wangwe",
    "speaker_title": "",
    "speaker": {
        "id": 2543,
        "legal_name": "Emmanuel Wangwe",
        "slug": "emmanuel-wangwe"
    },
    "content": "There is the concept of bookkeeping. This has two elements, the monetary reporting and the book-keeping itself. I am very happy the drafters have put it very clearly that the currency shall be in Kenyan shillings, notwithstanding the number of currencies we are going to trade in. We trade in UK Sterling Pounds and USA Dollars, the generally acceptable currency in the world; but the Bill recognises shilling as our sovereign currency. This Bill is now recognises our shilling. Our sovereignty as per the Constitution is now coming out in this Bill. It is important to let all people trade. We do not want to know where they come from; all we want is for them to report in our currency. The taxpayer is at liberty to trade with the Far East, Europe or whichever country, but the reporting should be done in Kenyan shilling as per this Bill. This Bill also recognises that we must report in a language that is acceptable and official. Kenya has only two official languages. Although Kiswahili supersedes English, we recognise English as the official language when it comes to mass communication. This Bill allows very many languages to be used. Citizens of various countries can come in and trade but they should recognise the official language to be used in trade. The issue of tax returns in Part V is good. The same principle I spoke of with regard to the CG writing back is also coming up. Part III, Clause 25(3) says that the CG may grant an applicant an extension under this section, if he is satisfied that there is reasonable cause, and shall notify the applicant in writing of the extension of time. This recognises the issue of extension. Returns are not actual transactions in terms of money. You might be a taxpayer but for one reason or another you may not be able to pay. You may have gone on safari or you may have been hospitalised and, therefore, you cannot file your returns. The current rule states the date when you are supposed to file your returns, and does not give leeway to the CG to allow you flexibility. As a word of caution, the issue that is likely to arise is that most of the time the CG himself is not there. He delegates this responsibility to another officer. This must be handled with utmost faith, so as not to be misused to allow corruption or to become a money making venture. When this responsibility is delegated to other officers, they should not allow their friends to go on holiday while Kenyans suffer. It is a good clause, but it is prone to abuse. Therefore, we need to question the penalty clauses. I will be making some proposals during the Committee Stage on how to curb this risk when it comes to the penalties. I am also happy with the tax assessment aspect. There is Income Tax I and Income Tax II. These are procedures; they are not forms of tax. We have Income Tax I and Income Tax II, which are currently applicable. The tax assessment is a bit flexible because it allows the CG to engage the taxpayer; when an assessment is done and it turns out to be faulty, one can own up and state the true position. It gives a chance to the taxpayers to discuss and engage the tax agent, who is the Kenya Revenue Authority (KRA); they are able to proceed and effect their transactions. Finally, I am happy with the collection and recovery of tax and tax refunds. Many times when foreign investors make profit, they connive with a few officers and expatriate the tax due in form of tax liabilities. This has been well covered in this Bill. I look forward to seeing it being implemented to the latter. At the same time I want to caution that in Clause 33 (1), the CG may grant an extension of time for payment of taxes. This is a very loose statement, which we need to cover with penalties when it comes to the Committee. I will be making the necessary recommendations and proposals, so that my colleagues can support me on this issue. With those very many remarks, I support the Bill. 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."
}