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{
    "id": 602025,
    "url": "https://info.mzalendo.com/api/v0.1/hansard/entries/602025/?format=api",
    "text_counter": 273,
    "type": "speech",
    "speaker_name": "Hon. Mbui",
    "speaker_title": "",
    "speaker": {
        "id": 1750,
        "legal_name": "Robert Mbui",
        "slug": "robert-mbui"
    },
    "content": "However, in our first year in this House, we discussed the issue of identification and we passed a Motion that was moved by Hon. Charles Nyamai. It was talking about having a single identification for every citizen of this country. That is something that we need to go for so that, the number that you are given at birth is the same that you will use for your identity card for business purposes, National Social and Security Fund (NSSF), National Hospital Insurance Fund (NHIF) and even for voting. Therefore, that is an area that needs to be looked into because it was discussed in this House and Members felt that it was important to have an identification number that identifies you, not just for taxes, but for everything else. Clause 18 talks about directors being liable for a tax that is due from their organizations. When we discussed the Company Law, we kind of lifted the fees, so that the directors do not hide behind the fact that they are part of a company that is doing wrong things. Basically, that means that if the organization is liable, then the directors are liable. That is my understanding of that Clause and that is why I support it. On the issue of record keeping, it is important to have a limit to the period where organizations can keep the records for purposes of inspection by tax officials. This Bill proposes that those records be kept for a maximum of five years after which no officer should be asking for documents as old as 10 or 20 years. Therefore, that is a very important part of this Bill that needs to be supported. Clause 25 talks about the extension of tax return period. We have authorized the Commissioner to extend tax returns period for certain people or for different reasons. This avoids corruption because, if you are unable to do your returns on time and there are many valid reasons why people can fail to do returns. Basically, it gives the Commissioner power to allow an extension of the period when tax returns can be made and that basically helps us to ensure that corruption is not there. This extension will only be given when the applicant will be able to satisfy the Commissioner. Under Clause 38, I am happy that the late payment of interest has been pegged at 1 per cent of that amount per month or part of a month. This means that the maximum one can pay for delayed payments is only 1 per cent of what is due. I know it is high for companies that owe a lot. However, when you look some of our statutory obligations to make payments, for example in NHIF, it is 500 per cent per month. So, when somebody owes Kshs10,000 and they are unable to pay the penalty, it increases to Kshs50,000. It does not make any sense whatsoever. So, this is logical. It is something that will discourage late payments but, at the same time, it does not cripple businesses that are operating in this nation. All countries develop using funds that are collected in form of taxation from the citizens. The biggest incentive for people to pay taxes is the efficient and effective utilization of those funds by their Government to provide them with the necessary services, infrastructure and to ensure that the economy is growing as expected. Contrary to that, people get discouraged and start avoiding paying tax. What discourages people from paying taxes the most is corruption. This is something that has eaten this country. Corruption is not about people stealing millions or billions or even trillions. We have been insulted as a nation because those monies are stolen from this nation and stashed in foreign accounts. Our Government borrows money from those foreign countries that have our money in their banks, and then we pay back with interest. It is totally illogical. Time has come when Kenyans must stand up and say no to corruption. This is no longer a situation of 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."
}