Most Read Contributor in South Africa, September 2016
KENYA: Chinese companies investigated by Revenue
Local media reports of 30 May 2014 announce that the Kenya
Revenue Authority (KRA) is investigating a number of Chinese
companies suspected of evading tax.
KRA Commissioner General John Njiraini said it is suspected that
some Chinese-owned businesses are either under- or mis-declaring
cargo. Njiraini indicated that a number of cases involving such
malpractices are already under investigation and that punitive
penalties, including criminal prosecution, would be imposed.
Chinese businesses play a significant role in the Kenyan
economy, including the public infrastructure, construction, real
estate, manufacturing, machinery and equipment supply and
telecommunications industries. Official data from KRA's shows
imports from China grew by 25 per cent over the last three years,
reaching a total of Sh165.3 billion in the 2012/13 financial year
or the equivalent of 11.6 per cent of total imports.
TANZANIA: Transfer Pricing Regulations
The Income Tax (Transfer Pricing) Regulations, 2014 were issued
by the Tanzanian Government in May, effective from 7 February 2014.
The Regulations provide practical guidance regarding the
application of the anti-avoidance provisions contained in article
33 of the Income Tax Act 2004. The Regulations stipulate that
transfer pricing documentation should be in place at the time of
the filing of the annual income tax return and allow for Advance
Pricing Arrangements to be entered into for a period limited to
The transfer pricing methods adopted by the Regulations follow
those set out in the Organisation for Economic Co-operation and
Development (OECD) Transfer Pricing Guidelines for Multinational
Enterprises and Tax Administrations (the OECD Guidelines). The
Regulations recognise both the OECD Guidelines and UN Transfer
Pricing Manual for Developing Countries as sources of further
The content of this article is intended to provide a general
guide to the subject matter. Specialist advice should be sought
about your specific circumstances.
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Effective collaboration amongst government agencies, automation of processes and capacity building by tax authorities have always been identified by stakeholders as strategies for achieving an efficient tax system.
In response to information provided by FIRS, NSE has sent letters to publicly listed companies, who were purportedly identified by FIRS as non-compliant.
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