THE INSTITUTE OF CERTIFIED PUBLIC ACCOUNTANTS OF KENYA
(Established under the Accountant Act, Laws of Kenya)
Tax Principles and Emerging Issues Seminar
Theme: Understanding Legislative Requirements for Managing and Improving Tax Compliance
Date: 7th – 8th March 2024
Time: 09.00am -03.30pm
Venue: – Merica Hotel, Nakuru.
OVERVIEW
The Finance Act, 2023 has introduced a WHT of 5% for payments relating to digital content monetization. The Act has amended the Income Tax Act by introducing a digital asset tax (DAT) at a rate of 3% deducted by a person who owns a platform or facilitates the exchange or transfer of a digital asset. The tax is levied on the gross fair market value consideration received or receivable at the point of exchange or transfer of a digital asset and remitted within five days after making the deduction. Non-resident persons who own platforms on which digital assets are exchanged or transferred will be allowed to register under the simplified tax regime.
Various new tax rates and levies have been introduced as a result of the Finance Act, 2023, including a housing levy chargeable on personal emoluments. Further, the value-added tax (VAT) rate on fuel has been standardized to 16%, while the rate of capital gains tax (CGT) has been increased to 15%.
As of the date of publication, there are various legal challenges to the Finance Act, 2023. While the Finance Act, 2023 is currently operational, taxpayers should keep updated on the outcome of the legal challenges.
The primary goal of a revenue authority is to collect the taxes and duties payable in accordance with the law and to do this in such a manner that will sustain confidence in the tax system and its administration. The actions of taxpayers — whether due to ignorance, carelessness, recklessness, or deliberate evasion — as well as weaknesses in a tax administration mean that instances of failure to comply with the law are inevitable. Therefore, tax administration should have in place strategies and structures to ensure that non-compliance with tax law is kept to a minimum. Revenue authorities have a central role (and vested interest) in ensuring that taxpayers and other parties understand their obligations under the revenue laws. For their part, taxpayers and others have an important role to play in meeting their obligations as, in many situations, it is only they who are in a position to know that they may have an obligation under the law.
In a statement on August 2, 2023, the State Department for Housing and Urban Development said the levy would be payable by the employee and the employer at the rate of 1.5 per cent of the employee’s gross monthly salary as outlined in the Finance Act 2023. “There has been a misconception that the affordable housing levy is a tax, yet it is not. The levy is a savings plan deduction with benefits accruing to the employee. It will also enhance the national saving plan,” said National Treasury in a note “demystifying the facts” in the Finance Bill, 2023.
Therefore, it is crucial for governments to cope with these new tax revenue challenges effectively. By diminishing the importance of national borders, globalization has created new multinational, tax-jurisdictional gray areas that make it easier for taxpayers to avoid or evade taxes. At the same time, international economic integration reduces statutory tax rates, due to increased tax competition. In high- income countries, this negative tax competition effect of trade has dominated, while in developing countries the positive tax-capacity effect of international trade appears to have prevailed. Concurrently, new technological advances are making it easier for multinational corporations to manipulate national tax structures to corporate advantage. Many developed countries have adopted tax reforms in the past few decades to counter these very problems.
This seminar focuses mainly on the major developments in domestic and international tax frameworks that are geared toward promoting tax compliance. The seminar further, looks at the emerging tax issues linked to global and domestic tax outlook on basis of political and economic trends. Specifically, the seminar will cover the following areas of tax as relates to tax compliance as well as issues that are considered emerging in tax practice:
- Canons of Taxation- the guiding rules and principle for effective and functional tax collection system
- The Compliance Risk Management Process
- The ripple effect of compliance interventions.
- Understanding taxpayer compliance behaviour
- Globalization and Technological Advancements on Tax Compliance
- Affordable Housing & Digital Tax
- iTax Issues- Open Session
- Tax system and reporting compliance
- Impact of Regulatory requirements on Tax Compliance
- e-TIMS Real-time-reporting (RTR) and Compliance Obligations
- Current requirements on complying with Value Added Tax (VAT) in Kenya
TARGET AUDIENCE:
This training is open to all Tax Professionals, Audit Practitioners, Senior Management, CEOs, Boards and those aspiring to join the profession.
CONTINUOUS PROFESSIONAL DEVELOPMENT UNITS (CPD UNITS):
Members of ICPAK and those from reciprocating professional bodies will be awarded 14 Structured CPD Units upon successfully completion of the workshop.
FINANCIAL COMMITMENT:
The workshop charges are Kshs. 10,000. Charges will cater for the workshop fees, learning materials, and e-certificates of attendance.
ONLINE BOOKING:
Registration: Delegates are reminded to note that online booking for the workshop is mandatory on https://www.icpak.com/event-registration/Online Booking We call on workshop participants to note that booking is available only online at www.icpak.com and will close one day before the training session. Delegates are reminded to note that online booking for the training is mandatory.
NATIONAL INDUSTRIAL TRAINING AUTHORITY (NITA) REIMBURSEMENT:
The Institute is registered as a trainer with National Industrial Training Authority. The Institute’s registration number is DIT/TRN/47. Participants who are registered levy contributors should apply to NITA for reimbursement of their fees. Please note that this is applicable for Kenyan citizens only and subject to NITA regulations. Remember that to qualify you should apply to NITA for approval prior to the date of the conference. Further details can be obtained from their website (www.nita.go.ke)
Further requests can be channeled to us via telephone calls on, +254 719 074 100, or via email to Dorcas Gichira at dorcas.gichira@icpak.com with a copy to memberservices@icpak.com
We encourage members to regularly visit our website https://www.icpak.com for updates.
