{"count":1608389,"next":"http://info.mzalendo.com/api/v0.1/hansard/entries/?format=json&page=156789","previous":"http://info.mzalendo.com/api/v0.1/hansard/entries/?format=json&page=156787","results":[{"id":1586072,"url":"http://info.mzalendo.com/api/v0.1/hansard/entries/1586072/?format=json","text_counter":479,"type":"speech","speaker_name":"Hon. David Ochieng’","speaker_title":"The Temporary Chairman","speaker":null,"content":" Hon. Chairman, you mentioned that the debtor pays for the auctioneer's fee and subsequently, when consolidated, pays KRA the tax. Is that the position? Why must this happen?"},{"id":1586073,"url":"http://info.mzalendo.com/api/v0.1/hansard/entries/1586073/?format=json","text_counter":480,"type":"speech","speaker_name":"Molo, UDA","speaker_title":"Hon. Kuria Kimani","speaker":null,"content":" We should begin with the moment a credit entity issues a loan to a debtor. The issuance of that loan is an exempt transaction. If the loanee defaults for any reason, but there exists collateral which was advanced whose transaction was tax exempt. When the creditor disposes of this asset to recover the obligation, that is a taxable transaction. This implies that when creditors initially advanced the payment to the debtor, it was “at a cheaper rate” because it was exempt. When the time comes to recover costs, they are required to pay VAT on that transaction. This complicates their ability to recover the costs of the loan. The obligation to pay for the transaction should rest with the defaulter, not on the financing transaction. Can this be abused? There are very good safeguards of repayment principles, which dictate that the interest should not exceed the principal amount. Even though there is merit in what the Members are raising, this can be addressed administratively by ensuring that the cost does not surpass the value of the particular item to the loanee."},{"id":1586074,"url":"http://info.mzalendo.com/api/v0.1/hansard/entries/1586074/?format=json","text_counter":481,"type":"speech","speaker_name":"Hon. David Ochieng’","speaker_title":"The Temporary Chairman","speaker":null,"content":" Order. The point raised is that the money initially provided is exempt, but now it is being taxed because it has accrued interest. The interest is what is being recovered. Let us have Hon. Oundo."},{"id":1586075,"url":"http://info.mzalendo.com/api/v0.1/hansard/entries/1586075/?format=json","text_counter":482,"type":"speech","speaker_name":"Funyula, ODM","speaker_title":"Hon. (Dr) Ojiambo Oundo","speaker":null,"content":" Hon. Temporary Chairman, I see a practical challenge in implementing this clause. The Chairman and his technical team should take note of this. Assuming that an individual has taken a mortgage on a property, and in the event that one defaults, the Land Act is clear that the property should not be sold for less than 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."},{"id":1586076,"url":"http://info.mzalendo.com/api/v0.1/hansard/entries/1586076/?format=json","text_counter":483,"type":"speech","speaker_name":"Funyula, ODM","speaker_title":"Hon. (Dr) Ojiambo Oundo","speaker":null,"content":"75 per cent of the market value. If a person has been servicing the loan and then defaults, this has already been capped at 75 per cent. This presupposes that the bank should absorb all the attendant costs in respect of the same transaction, to the extent that they do not expect the debtor to service the outstanding debt. This is the implication. We should avoid a situation where the auctioneers and banks collude and fleece debtors."},{"id":1586077,"url":"http://info.mzalendo.com/api/v0.1/hansard/entries/1586077/?format=json","text_counter":484,"type":"speech","speaker_name":"Hon. David Ochieng’","speaker_title":"The Temporary Chairman","speaker":null,"content":" Member for Samburu West."},{"id":1586078,"url":"http://info.mzalendo.com/api/v0.1/hansard/entries/1586078/?format=json","text_counter":485,"type":"speech","speaker_name":"Samburu West, KANU","speaker_title":"Hon. Naisula Lesuuda","speaker":null,"content":" Thank you, Hon. Temporary Chairman. Having listened to the Chairman of the Departmental Committee on Finance and National Planning, it would be more prudent to position the tax beforehand. He has mentioned that it was exempt initially. The debtor should be informed of the obligations they are entering into before they find themselves unable to pay the debt. It does not make sense. Is it the creditor who will provide the debtor with the funds to pay the tax? One cannot overburden someone who is already struggling. I oppose."},{"id":1586079,"url":"http://info.mzalendo.com/api/v0.1/hansard/entries/1586079/?format=json","text_counter":486,"type":"speech","speaker_name":"Hon. David Ochieng’","speaker_title":"The Temporary Chairman","speaker":null,"content":" The Member for Kitui Central."},{"id":1586080,"url":"http://info.mzalendo.com/api/v0.1/hansard/entries/1586080/?format=json","text_counter":487,"type":"speech","speaker_name":"Kitui Central, WDM","speaker_title":"Hon. (Dr) Makali Mulu","speaker":null,"content":" Hon. Temporary Chairman, this is a very serious, but simple matter. By the time one is being auctioned, they have serious financial challenges. Imagine a situation where I am being auctioned, my car has been taken away and I am asked to pay tax. This complicates everything. The implementation of this clause is challenging. The Chairman of the Departmental Committee on Finance and National Planning needs to withdraw it. We should reconsider and it can reintroduce it later."},{"id":1586081,"url":"http://info.mzalendo.com/api/v0.1/hansard/entries/1586081/?format=json","text_counter":488,"type":"speech","speaker_name":"Hon. David Ochieng’","speaker_title":"The Temporary Chairman","speaker":null,"content":" Thank you. What is the problem, Hon. Chairman?"}]}