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Archive for the category “Tax”

Brexit: European Council – Legal Acts – Subject: EUROPEAN COUNCIL DECISION taken in agreement With the United Kingdom extending the period under Article 50(3)TEU (11.04.2019)

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USA: Rep. Richard Neal letter to IRS Commissioner Charles Rettig subpoena for the President Trump’s Tax Returns (03.04.2019)

Bank of Uganda: Monetary Policy Statement for April 2019 (01.04.2019)

Brexit: TUC General Secretary Frances O’Grady letter to Prime Minister Theresa May (21.03.2019)

Opinion: President Kenyatta’s corruption fight is like a mirage

If the sword of oppression be permitted to lop off one limb without opposition, reiterated strokes will soon dismember the whole body.” Alexander Hamilton

After the recent weeks and the new fancy scandals, you can pound and wonder, where is there no corruption, Mr. President?

The President, I am asking today is President Uhuru Kenyatta and his administration. The Jubilee has a special feature, they have a own slogan of fighting corruption, while amassing more of them at the same time. They are capturing the headlines nearly daily.

President Kenyatta and Deputy President Ruto are in the wind, they are battling a big monster, which themselves are contributing too. They are trying to play the card of battling it, while they are feeding it. The Cabinet Secretaries are usually implicated, the Principal Secretaries are as well.

The government are doing it all ways possible, by borrowing money for ghost projects like ghost-dams, which has been revealed recently. The state has taken giant loans from Eurobonds twice and still configured ways to siphon the funds away from the government. The Jubilee have eaten directly from the investment funds directed to youth employment. The Jubilee have been able to take away from health care procurement and waste funds there, instead of helping the sickly in dire need.

This is how we can go-on. This is a continued saga that never stops. While the Jubilee have a stark rise in corruption, at the same time, the state has taken out more and more debt. Therefore, the state is not only owning the creditors more money, but they are also wasting the loans. Which the state will pay back with interests after the grace period. This is will backfire on the next cabinets and next state officials, as they will have to clear the debts and find revenue to repay them. If not sell collateral- or assets. This will really be devastating.

Uhuru Kenyatta and William Ruto will downplay the indirect bribes, graft and corruption done by their officials, they will say it is less or not really allocated. They will act a fool, but at the same time attack the cause and say they are dealing with it. By going after the minor cases or small fry, they are going after the chicken thief or the small businessmen who does it to be able to trade on the market. However, the ones who runs the market and runs the “monopoly” imports are in the pocket of the administration, and will will not be touched.

As long as Cheech and Chong is running this Republic. The growth of the corruption will continue to rise. As their businesses are growing, their empires are getting stronger. The two leaders are grabbing more land, more government tenders and even development projects. That is what the President and Deputy does. While the Jubilee says they are fighting it.

Therefore, as long as these two are running the government. Expect more graft, bribes, kick-backs, siphoned funds and ghost projects. There will ghost everywhere, the cronies will create straw/shell companies who siphon funds… this will occur again and again. The state will give- or loan for non-function development projects/organizations, whose supposed to do something, but in reality it will be a figment of imagination. It will be a make believe like a mirage. It will only be in the vision of the person hinging for water, but when the person arrives to the mirage. There will be no water, but only more hot-sand. This is what the Jubilee does to the public.

The Jubilee is offering a mirage to continue … and hoping no one is feeling the hot-sand, but believing in the mirage. Peace.

Brexit: A “No Deal” will have significant impact for the UK!

We cannot trample upon the humanity of others without devaluing our own. The Igbo, always practical, put it concretely in their proverb Onye ji onye n’ani ji onwe ya: “He who will hold another down in the mud must stay in the mud to keep him down.” Chinua Achebe

Today, the Tories dropped an short assessment of the implications of the “No Deal” Brexit. Which for many has been seen as a damaging affair. This is sort of report, that is dropped today. Isn’t scaremongering, but more a reality check to the ones whose thinking the “No Deal” is good idea.

I will quote significant parts of the report, like this: “Despite the Government’s efforts to prepare for a no deal, a no deal scenario would have a range of significant impacts for the UK”. I will come more to the significant impacts, as they are issued in the report, even as sleek as it is. Only 15 pages, but still has enough meat to hurt your hopes.

Like this: “This estimates that the UK economy would be 6.3-9% smaller in the long term in a no deal scenario (after around 15 years) than it otherwise would have been when compared with today’s arrangements, assuming no action is taken”. That is all a major hit on the economy, as you are shrinking nearly one tenth of the economy, if the worst estimates are hitting the economy.

Another part of hard hitting new realities is this: “In a no deal scenario, both the UK and EU would need to apply customs and excise rules and VAT to goods moving between the UK and EU, as they are currently applied to goods traded in the rest of the world. Every consignment would require a customs declaration, and so around 240,000 UK businesses that currently only trade with the EU would need to interact with customs processes for the first time, should they continue to trade with the EU”. This has been forewarned by plenty, even the likes of me, but not that it has mattered. Maybe, the buck has to get this close only a few days and weeks away. For many businesses and people struggling with movement. To recognize the costs and lack of protocol to deal with so.

Here is the impact on the food import: “One of the most visible ways in which the UK would be affected by delays in goods crossing the Channel is our food supply, 30% of which comes from the EU. Although our food supply is diverse, resilient, and sourced from a wide variety of countries, the potential disruption to trade across the Short Channel Crossings would lead to reduced availability and choice of products”. This means that vital parts of the imports and needed food are stopped, because the availability will go down. There might be shortages and even withheld, because the proper documentation and such is lacking. This should be a worry and show how this is hitting home. To make matters worse: “ In the absence of other action from Government, some food prices are likely to increase, and there is a risk that consumer behaviour could exacerbate, or create, shortages in this scenario. As of February 2019, many businesses in the food supply industry are unprepared for a no deal scenario”. This doesn’t make it better. Only shows that the government haven’t done their job, preparing the industry or the importers who could have made sufficient preparation, as the government could have ensured this. Instead, the public is hit with higher prices and lack of certain food products.

For instance, the issues of Northern Ireland comes returning with fire and fury: “the cumulative impact from a ‘no deal’ scenario is expected to be more severe in Northern Ireland than in Great Britain, and to last for longer. This is because of Northern Ireland’s unique circumstances, including in particular its geographical position as the only part of the UK with a land border with the EU, and the current lack of an Executive in Northern Ireland. The Government has been clear that it is committed to avoiding a hard border between Northern Ireland and Ireland in any scenario”. This shows, that the NI problem, the whole Good Friday Agreement would be played around with, as the Brexit will hit Northern Ireland. They are making hardships not only there, but for the ones across in the Irish Republic. That is what seems to be happening with the No Deal Brexit. Not only hit the economy of NI, but in general not following the promises made to that part of United Kingdom.

Seemingly done this silently: “Government has been accelerating its preparations for a no deal scenario since September, with a particular emphasis since December 2018. However, the short time remaining before 29 March 2019 does not allow Government to unilaterally mitigate the effects of no deal. Even where it can take unilateral action, the lack of preparation by businesses and individuals is likely to add to the disruption experienced in a no deal scenario”. Seems like they haven’t done enough or kept it low-key. The preparedness haven’t been there, if it had been, than the businesses would have been more prepared. They have clearly not kept everyone informed about their accelerating plans or assessment of a no deal.

For the ones saying the Brexit wouldn’t matter, wouldn’t cost or wouldn’t change things in a negative perspective. You were wrong. The realities of possible losses of fortunes should frighten anyone. The possible troubles of imports of foods and other vital items should also be a sign of what sort of self-created nightmare the UK have made for themselves.

The government are trying to say they are not having mud on themselves, while pushing the public into the mud. To repeat from the beginning, like the Igbo says: “He who will hold another down in the mud must stay in the mud to keep him down”.

Enough of the mud of a No Deal. Peace.

Reference:

HM Government – ‘Implications for Business and Trade of a No Deal Exit on 29 March 2019’ Published: 26.02.2019

Kenya Revenue Authority: Press Statement – KRA has not abolished filing of tax returns as reported (25.02.2019)

Opinion: Dr. Wagacha undress the debt trap, that Jubilee have created!

[Credit is a system whereby] a person who can’t pay, gets another person who can’t pay, to guarantee that he can pay.” Charles Dickens

We have seen it for a while, as the Kenyan government have spent much more, than they are actually collecting revenue and getting grants. The Jubilee government have not only siphoned funds, but borrowed funds like a drunk sailor. This administration have not considered the implications of the loans and the deficit, they have created.

Uhuru Kenyatta and William Ruto has ordered this ship, it has been known. The Grand Corruption by this government alone has made huge losses. Jubilee knows this and the ones that has followed this government. Have seen it with time and discussed it.

Now suddenly Dr. Wagacha says this:

Dr Mbui Wagacha, a policy analyst who left the advisory role in the top office last December after five years, says Parliament has looked the other way as the National Treasury gave the Kenya Revenue Authority (KRA) unrealistic revenue targets only to fall back on debt and expenditure cuts. “We borrowed so much and our headroom for debt has narrowed … there was an over-commitment to capital borrowing and that has left us with narrow headroom for debt,” said Dr Wagacha. “If you look at 2011/2012, we were spending only about 11 per cent of GDP (Gross Domestic Product) directly to repay debt. We are now talking about 57 per cent of GDP in public debt.””(Alushula, 2019).

We know that the state has issues, when the Jubilee are putting austerity measures given by the International Monetary Funds (IMF). While the Jubilee are taking more debt, taking more infrastructure grants and loans, as well as the state is not having the revenue to cover the deficit that has created. This is why the state is paying more of the GDP now, compared to what they did when Kenyatta and Ruto took power.

The Jubilee government could have carried it differently. The Jubilee have used the Eurobonds twice to get fiscal stimulus, but it was also a loan. Therefore, the Jubilee will have to repay those. Just like it has to do with the Chinese loans for the Standard Gauge Railway (SGR) and others, loans that the state has absorbed within the years of Jubilee.

Dr. Wagacha is speaking the truth, but the state has taken the Kool-Aid. Will it find a way to move forward wisely or will it continue the negative cycle of loans to pay-off the old loans, instead of finding revenue and creating a healthy economy. If not just living within its means and not pushing for more, than you can pay for without credit. Peace.

Reference:

Patrick Alushula – ‘Ex-Uhuru adviser says debt may affect growth in Kenya’ 05.02.2019, link: https://www.nation.co.ke/lifestyle/smartcompany/Ex-Uhuru-adviser-says-debt-may-affect-growth-in-Kenya/1226-4967482-b1tau4z/index.html

Brexit: Retail Executives letter to House of Commons (28.01.2019)

Burundi: The Senate starts moving the offices to Gitega!

19th January 2019 – PNB loaded these trucks with furniture’s.

The movement of Capital in Burundi is winding up, as President Pierre Nkurunziza wants a more peaceful to continue his reign from. As the place of studies and such, which haven’t had the infrastructure nor the development are not stationed to be the political capital of the Republic.

CNDD-FDD and Nkrunziza are now taking steps to get things ready in Gitega. From the 18th January until 2nd February 2019, the various offices of the Senate are moving as per order on the 16th January 2019. That was ordered by the Senat President Renovat Niyonzima. On the 19th January, the PNB started moving furniture on the 19th January 2019. Therefore, the move is happening and not just orders.

That is why it is clear, that the move of capital is happening. Surely sooner or later, the CNDD-FDD and Nkurunziza will ask for funds, loans and grants to develop the Capital. As there are not as much in Gitega compared to Bujumbura. Even if Gitega is the Capital of Kings, there is hard to compare the places in buildings and in infrastructure.

What is really special about the move, there are no budget or direct plan on how to do it within a month. Just dates on movement. You can wonder about housing and the places to stay for the ones working at the Senate and the Senators themselves. Just because the PNB starts driving away furniture, the placement and space in buildings has to be cleared or made. In a month is very short time limit, especially with no budget. Meaning needed funding for making Gitega the Capital.

We have to see how this continues, see if the IMF or World Bank will fix funds or even the CNDD-FDD will ask for viable funds through loans in the China Exim Bank. That would be natural for them, as the expenses of the transfer of the political capital there. Because, the state should have finance and funds ready to cover expenses. But they only had a vote and now they have a paper sheet for the move. Therefore, the plans are limited and the President have fixated on a more peaceful living in Gitega, than in Bujumbura.

This here looks a personal gift to him and his will. Not looking like a viable move. More of the same and more living like almighty king he is.

President Nkurunziza thinks this is wise, but really making him look foolish. Even as the Gitega is the historical town of Kings. Still, it doesn’t mean it yet is fit for the prospects of housing all parts of the political sphere of the Republic. That should been planned over a long time and also had sustainable funds for moving. However, this seems forced and unplanned. Peace.

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