Question Three
The Kenya Revenue Authority (KRA) defines tax incentive as a provision that grants any person or activity favorable conditions that deviate from the normal provisions of the tax legislation. It is therefore a special provision that allow for exclusions, credits, preferential tax rates, or deferral of tax liability that is meant to impact positively the person or activity as it obtains a favorable tax treatment compared to others in the industry. Tax incentives in Kenya can be grouped into either investment promotion incentives or export promotion incentives.
Impact of Tax Incentives on the National Tax Base in Kenya
Kenya offers various types of tax incentives as provided for in the Income Tax Act CAP 470, The VAT Act CAP 476
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Tax Holidays – Special Economic Zones
In Kenya companies operating in EPZs enjoy a 10-year tax holiday and a reduced corporate tax rate of 20% for the next 10 years (ITA, 2010). This is a measure to attract Foreign Direct Investment and also encourage local investors.
While tax holidays are known to have attracted increased foreign direct investment (FDI) to Kenya and hence promoting growth and employment, they have many disadvantages due to lack of proper design and control. First, it attracts short term projects because once the period for the tax holiday is over, businesses soon wind up and move out to invest elsewhere (Blackwell, 2009). It also encourages tax avoidance by allowing businesses to move from high tax regions to low tax jurisdictions such as Kenya.
c. Capital Allowances / Deductions
The law, under the Income Tax Act provides for various capital allowances. These incentives are mainly intended to encourage investments in the country and since the year 2010, the government even sought to encourage investments outside the main cities by giving higher incentives to businesses setting up business in such areas. Though the main goal is to increase investment and improve economic standards, I feel the capital allowances have been exploited to create tax credits that take close to ten years to exhaust before an entity can start paying
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However, the government has consistently been unable to capture the transactions in this sector as there is no clear way on how to transform the informality to formality across sectors. Government should invest in mobilizing the larger informal sector businesses and activities into cooperatives across different sectors, for easy access to financial services for profitable investment. By forming cooperatives, a largely-unorganized informal sector can be transformed into a formal one, making it easy for the government to track their income performance for tax collection
Keep note of the overall outcome for Australian Tax policy for the Commonwealth Treasury is “To influence Strong sustainable economic growth for the good of the Australian People.” Additionally the 4 key Pillars of Australian Economic Diplomacy Promoting Trade Encouraging Growth Attracting
Colonialism, it’s how population spread across the world and how we’re here today. Most people think that the Europeans colonizing across the world had a positive effect; however, there are some people that the Europeans colonizing across the world had a negative effect. Colonialism had both a positive and negative affect on Kenyan people. During the time, the British imposed a harder religion that they had brought along, how people were being treated, and agricultural services. European colonialism had a negative effect on the Kenyan people through imposing a harder religion that they had brought along.
Is Gerrymandering a Controversial Topic? Gerrymandering is a process where the ruling political party uses the map of their state to draw lines that create voting districts in favor of their party. The result of this is that it doesn’t reflect the voters political views. For about 200 years the government has used gerrymandering during political elections and it continues to be used today (King, Elizabeth) .
The framers of the Texas Executive established a system that was designed to check the powers of the government. As opposed to the US Constitution that vested the power of the executive in the president of the nation (Berry, 1385), the Texas Constitution sought to ensure that the state did not have the excess powers. As such, they came up with a plural system where a variety of individuals make up the executive branch of the state (Texas State Government at a Glance). While the governor of the state remains as the highest ranking officials in the state, they hold the least of powers in the plural system.
The electoral reform I am suggesting was first proposed by Arthur Schlesinger Jr. in 1978 and it was called the “National Bonus Plan”. The National Bonus Plan is not a dramatic change to the way elections in the U.S. currently take place, but I think the modifications that would be necessary with campaigns and political strategy to be successful in this new era could be productive ones. It retains the current electoral college and many of the same characteristics that are used today, but it awards extra electoral college votes for winning the popular vote. While there are pros and cons to this idea, I believe the positives would outweigh the negatives if we consider a few changes to Schlesinger’s original plan. The original plan proposed
Why do we need money? Do we need money because of our wants or needs, or both? Money is an essential aspect in our society in which we use to supply our needs and wants. Everyone in our society thinks differently in respect towards if you have more money than more problem. In the contrary, if I were to give you a million dollars I highly doubt you will have more problems instead more problems solved because you have more money.
Deficit Spending Norman Harris American Military University 29 January 2017 Deficit Spending Deficit spending is based off the Keynesian ideology of macroeconomics which, in part, believes the government can be used to stimulate the economy. Deficit spending occurs when a government spends more money than what it takes in over a fiscal period, creating or increasing a government debt balance. Government deficits gets it money through the sale of public securities; an example of public securities are government bonds (Roots, nd). Deficit spending is an intentionally calculated plan included in the yearly fiscal budget of the President and Congress to help stimulate the economy (Amadeo, 2016).
Many schools in Kansas have been under payed, and kids still attend those schools. These schools have many disadvantages and their learning abilities can be limited due to lack of technology and educators. Roughly forty percent of the schools don't get the financial support they need from the government and state funding according to the Department of Education. The schools are being under payed and tax proportions have been low so the money going to the schools is low as well. The future depends on these kids and when they are limited in education, they won't be the best version of themselves.
Gerrymandering Position Paper Gerrymandering is the irregular redrawing of district lines to give one political party an advantage. Gerrymandering usually starts with a census. Every ten years, it is necessary to recount the people to redistribute the seats for the members of the House of Representatives. If a state gains or loses states it is necessary to reapportion the state.
Formally known as the Basic Educational Opportunity Grant Program, the Federal Grant Program is considered the gateway to financial and higher educational opportunities for low-income students. It is a federal grant for undergraduate students who demonstrate financial need. The program was created in 1972 and was later renamed in 1980 after United States Senate Claiborne Pell who proposed the program. Signed into law by President Richard Nixon, The Federal Pell Grant is the first direct, post-secondary education program and is the largest federal need-based grant program for undergraduate college students. Compared to other outlets of financial aid that students receive such as federal loans, private bank loans, work study, SEOG, federal parent
Texas has been dominated mostly by Democrats, however during time this has changed. Today in modern society there is more Republicans than Democrats in our government systems. I believe this is a big issue for our Texas legislature because it is not balanced out and there is no competiveness. Although the legislation is not be balanced out the Texas legislature is still doing pretty good the way it is for now. However, I do not believe that the part time legislature is better than the full time legislature that the United States congress has.
Over the last few decades, the United States Congress has debated numerous campaign finance reforms. Debated proposals have included limiting independent expenditures, raising limits on individual contributions, banning all private campaign contributions, and creating a public financing campaign system. In many of the debates, compelling arguments exist for both the proponents and the opponents. Generally, arguments are predicated upon constitutional concepts, Supreme Court rulings, standard policy, logic and reason, and personal perspectives.
The Private sector plays a vital role in urban and economic development as it is a large contributor to national income and is the sector that employs the most people. The private sector provides 90% of employment in the developing world and provides 83.1% of the United Kingdom’s jobs. In the UK there are 5.3 million micro-businesses (0-9 employees) this makes up 96% of all businesses in the private sector. Those millions of micro-businesses account for 32% of employment and 19% turnover in the private sector. The Large businesses are the ones that bring in the most turnover and contribute the most to the economy.
1) Government may intervene in a market in order to try and restore economic efficiency. One of the ways the government intervention can help overcome market failure is through the introduction of a price floors and price ceilings. If prices are seen to be too high, price ceiling or a maximum price could be imposed on a market in order to moderate the price of the product. This policy is often used when there are concerns that consumers cannot afford an essential product, such as groceries. The effect of a maximum price could create a shortage as it could lead to demand exceeding supply for that particular good.
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