While I support that the MPs should pay taxes, we need to look at the legal provisions that KRA should follow since these MPs may go to court.

Under Sec 37.(1) of the Income Tax Act the duty of deducting and paying any tax on income from employment rests with the employer (read Parliamentary Service Commission). Actually if the employer fails to deduct the tax, it his responsibility to pay that tax and penalties and should he chose, recover the same from the employee.

Consequently, KRA writing to MPs and demanding taxes has to legal basis. They should instead ask the Parliamentary Service Commission to pay them the tax. However, this creates a problem since the commission will draw money frm the consolidated fund and pay to the same fund hence zero collection. My take is that KRA should stop demanding the arrears and ask the commission to deduct the tax accruing henceforth.

I suggest that you download the guide in the link below and make an informed comment

http://www.revenue.go.ke...ax/pdf/PAYEGuide2009.pdf

@milken

KRA has not Written to MP's, but to PSC through Clerk of the National Assembly. All the MP's have PIN numbers all of which KRA has details. MP's know they'll need Tax Compliance certificates which will come in hardy at later stages of their careers.

They are only delaying the inevitable, Even if they delay until after elections next year, the taxman can knock on their doors in 2013. By then Wako and Marende's rulings and or advice will be irrelevant.

The issue of Inter-Govt reconciliations should be left to the Accountants to do.

MPs should pay taxes however let not emotions cloud the law.

Tax collection is based on a tax point. For employment income the tax point is the time of payment. The employer (PSC) not the employee (MP) is responsible for deduction and remittance. KRA can only demand the taxes from the Commission and not the MPs and should that 2013 come still KRA can not go to the MPs unless the Commission and the government do not exist. One can still apply and obtain a Compliance Certificate and should KRA deny you one you can always apply for a judicial review.

Let KRA stop playing politics and exciting the public with this emotive issue. The only solution is to ask PSC to start deducting the taxes but in so far as the arrears are concerned, it will be a cold day in hell before they get that money.

Hahaa, you wish!!!Making them pay together with interest is as easy as taking a cup of tea. They better collectively negotiate with KRA on how to pay in installments until the arrears are cleared or a deal to have the employer deduct the current tax and arrears in instalments. If the Judges will pay plus arrears, MP's will pay with arrears and you can take this to the bank.

If I was a sitting MP, I would not waste my money paying a lawyer to file a case in court knowing very well that the case will be determined by Judges who are already paying tax. If you are doubting this, here is the article.
http://www.nation.co.ke/...1/-/a4497w/-/index.html[/quote]
@Tassia

Am just laughing all the way, knowing that at last the mpigs are supposed to file their cases to the supreme court which already have asked KRA to get all the taxes owned by the judges.
hii ni kichapo kweli. WALIPE

KRA didnt dramatise the issue. MPs did.

KRA simply wrote to PSC as it wrote to other bodies to ask for compliance with the law by remitting their employees tax dues.

They observed that these employers ought to have been remmiting the dues since the relevant law came into existence.
As such they are demanding that the employers recover the unremitted tax and pass it over.

The affected employees reacted to the news differently.
The Judges approached the matter with sobriety, - leaving their employer along with their representatives to negotiate on their behalf.

MPs opted for the rooftops thereby dramatising an otherwise civil affair.

Unless they can prove otherwise, as things stand, PSC is duty bound to formulate ways and means to recover the tax arrears from MPs and remit the same to KRA.