18th March, 2015 Issue No: 042_2015/16

KRA Officer Appointed to Head OECD - UNDP Tax Program

James Karanja, Assistant Manager International Tax Office has been appointed by the OECD to head the

inaugural Secretariat of the Tax Inspectors Without Borders (TIWB). Following his appointment, Mr. Karanja will be proceeding on secondment from KRA to the Organisation for Economic Co-operation and Development (OECD) effective 1st April 2016.

The TIWB Initiative, jointly launched by the UNDP and OECD in Addis Ababa in July 2015 with strong support of G20 Leaders, seeks to strengthen tax audit capacities of developing countries across the globe through targeted, tax audit assistance programmes. Mr. Karanja was prominently featured in a promotional video for the same initiative during the launch in Addis Ababa. (https://www.youtube.com/watch?v=GiLSRQXz7SI)

The position he is taking up is based at the OECD Headquarters in Paris France and requires close collaboration with OECD and UNDP staff, relevant OECD and UNDP Committees and Boards, tax administrations, regional tax organizations, civil society and business, donors, foundations and the media.

This high profile appointment is a strong affirmation of the Authority’s credentials globally as a highly professional organization. The appointment is expected to cement KRA’s co-operation with the OECD which goes back as far as 2008 when Kenya commenced

on a very productive and still active capacity building engagement on transfer pricing. This platform continues to provide the Authority valuable insights into global tax policy developments as formulated by OECD Centre for Tax Policy and Administration.

In 2015, Kenya provided strong leadership at the OECD on developing countries tax agenda during the OECD G20 Base Erosion and Profit Shifting Project and is expected to be among the first invitees to the proposed new inclusive framework proposed by the OECD for the global implementation of the BEPS project which is set to be launched in Kyoto Japan between 30 June- 1 July 2016. The framework will provide for global tax rule setting and implementation on an equal footing by all participating countries.

Mr. Karanja is an Advocate of the High Court of Kenya. He holds a Bachelor’s Degree from the Faculty of Law, University of Nairobi and due to complete his Masters in Public Policy and Management at Strathmore Business School. He possesses various professional diplomas and certificates including CIAT Transfer Pricing Advanced Diploma, Prince II Project Management, Arbitration, Revenue and Customs Administration.

Mr. Karanja has served within KRA since 2003 when he was enrolled in the Graduate Trainee program. He has served in various capacities in the Investigation & Enforcement

and the Domestic Taxes Departments including the Business Intelligence Office, Task Force on Motor Vehicles, Prosecution office, Projects Co-ordination office, Transfer Pricing Unit, Kenya School of Revenue Administration (KESRA) and the International Tax Office.

Mr. Karanja has been instrumental in leading Kenya’s compliance with the international standards with exchange of information. Mr. Karanja James has been serving as Chair of the Africa Tax Administration Technical Committee responsible for the Africa global tax agenda and the Base Erosion and Profit Shifting project on behalf of Kenya and Africa Tax Administration Forum within the OECD. He has gained vast experience as a Transfer Pricing Tax Auditor as well as Policy Analyst in DTD Policy Unit as well as project management experience while handling KRA reform projects which will enable him serve with distinction in his upcoming assignment at the OECD. Best wishes from KRA fraternity.

By PR & Communication Team

NEWS FLASH

KRA hosts 74th Meeting of the EARATCBy Maureen Njongo

KRA hosted the 74th meeting of the East African Revenue Authorities Technical Committee (EARATC) from 8th to 11th March 2016 at the Hotel Intercontinental. The meeting brought together 30 delegates from the five revenue authorities in the region namely, Kenya, Uganda, Tanzania, Rwanda and Burundi. Kenya is the Chair of the EARATC for the current financial year 2015/16.

The Chairperson, Ms. Karen Nginda, Chief Manager, Research, Knowledge Management & Corporate Planning Division (2nd right in blue), provided feedback on assignments presented to the Commissioners General during the 39th meeting of the East African Revenue Authorities Commissioners General held on 4th and 5th February 2016 in Nairobi at the Crowne Plaza Hotel.

The EARATC supports the work of the East African Revenue Authorities Commissioners General by undertaking research assignments

in key revenue administration areas. The research is benchmarked against

best international practise with a view to achieving operational efficiency and having a unified approach to key matters in revenue mobilisation and harmonisation of tax policies within the East African member countries. The EARATC therefore undertakes research in areas directed by the Commissioners General.

Among the issues presented during the EARACGs meeting included a regional Comparative Revenue Analysis Report 2015/16.

The report provides an analysis of revenue performance in the five EAC countries as benchmarked against performance by South African Revenue Service and includes analysis of intraregional trade among a number of indicators. This is work in progress with the final report expected to be ready by May 2016.Taxation of the informal sector has also been

an area of focus in respect to key sectors and their contribution to the economy. These sectors were identified and approved for further in-depth analysis with a view to providing recommendations on appropriate taxation measures.

The EARATC also gave an update on the road map to professionalise clearing and forwarding agents in regard to the number of initiatives had been taken by respective revenue authorities to professionalise the agents.

The meeting was sponsored by the Commissioner, Strategy, Innovation & Risk Management and organised by the EARATC secretariat comprising Ms. Karen Nginda (Chief Manager) and Mr. Joseph Sirengo (Manager) both of Research, Knowledge Management & Corporate Planning Division. They were assisted by staff from Marketing and Communication and Administration & Logistics Divisions.

Marketing and Communication Division in conjunction with revenue departments recently held a stakeholder engagement forum with Non- Alcoholic beverages sector on Excisable Goods Management System at Times Tower , Nairobi. Present were members from the Kenya Association of Manufactures (KAM) and KRA technical team Chaired by Mr. Edward Mbugua, Chief Manager, Compliance LTO.

The Division has been coordinating the meetings to foster seamless relationships with the sector to enhance compliance and revenue collection.

KRA is in the process of implementing EGMS to the non-alcoholic beverage sector aimed enhancing revenue collection, combating illicit trade, proof that duty has been paid on the item on which a stamp has been affixed, account for production; importation; and enhance tax compliance.

This is a key role of enforcement in the Authority to ensure smooth and enabling environment for businesses and protecting

them from illicit trade. The sector raised a number of issues during

the sensitizations and a working group has been constituted by the Commissioner of Domestic Taxes, Ms. Alice Owuor to solve them before the implementation of the system.

(Below) Chair Kenya Association of Manufacturers (KAM), Beverage Sector, Mr. Anup Bid in consultations with team at Crowne plaza hotel in one of the working group sessions.

Excisable Goods Stakeholder EngagementBy Dolton Nzano

The working group engagement meeting with Chair , Mr. Edward Mbugua and members of KAM finalizing the working group report.

Delegates: The 74th East African Revenue Authorities Technical Committee meeting held from 8th - 11th March 2016 at the Hotel Intercontinental, Nairobi.

NEWS FLASH

Withholding Taxpayer Education Forum By Kevin Mudavadi (Intern Marketing)

KRA recently conducted a Taxpayer Education forum on Withholding VAT and Tax procedures for Nairobi taxpayers at the Convention Centre, Times Tower. The training brought together about three hundred tax agents from both Large Taxpayers Office

(LTO) and Medium Taxpayers Office (MTO).

The Manager, Policy Unit, Mrs. Margaret Karanja briefed the participants on the importance of the program and its role in building Taxpayers trust through facilitation for enhanced tax compliance. ‘We are all proud to be Kenyans. We can only show that if we pay our taxes and make our country a better place,” said Mrs. Karanja.

The Withholding VAT was introduced by KRA on 1st October 2003 to act as a reinforcement measure to ensure that all the VAT charged is collected by the government.

The taxpayers lauded the session noting that technological advancement has served as a “game changer” for the Revenue Authority in achieving its set targets. According to Mr. Ramani Kashyap, an agent and finance controller at Apex Steel, the session allowed him to “understand better the demands

that come with withholding tax and its submission.”

Mr. David Mutoro of DTD, emphasized on the need to stick to procedure in order to avoid offences under the system. “Failure to remit the withheld VAT or to submit a return where there is no payment to make, is offensive,” he said.

Central Region Holds CPC Meeting

Staff from Central Region during Corruption Prevention Committte (CPC) meeting at the Sportsman’s Arms hotel in Nanyuki. The meeting was faciliated by the Ag. DC, Integrity & Ethics Mr. Tobias Konyango (seated right). The Regional Manager, Mr. Wilfred Okemwa (seated centre) chaired the session.

Mr. David Mutoro, DTD, takes taxpayers through Withholding VAT procedures during the session.

Chief Manager, MTO, Ms. Mariam Sila during a planary session on Withholding VAT & Tax Procedures at the forum.

A taxpayer queries details at the forum.