Raila leads the way in paying tax

By John Njiraini, Martin Mutua and David OchamiPrime minister Raila Odinga softened the ground for the taxman by paying up his arrears on salary drawn both as MP and PM since the Constitution was promulgated last August.
"It is imperative to note that nobody is above the law. Not the President. Not the Prime Minister. Not the Vice President. Not the MPs," declared Raila. 

Gachoka MP Mutava Musyimi, who has expressed interest in the bid to succeed President Kibaki next year, also paid up his salary arrears, totalling Sh1.99 million, at Times Towers.
"I am not able to wait until Parliament agrees with KRA,’’ Mutava said after receiving a certificate indicating he had paid his arrears.

He denied claims he could have paid the money to appease public anxiety and bolster his presidential bid to be launched this weekend.
He admitted he had been aware of his tax obligations under the Constitution and his compliance should have happened earlier. 

Raila queued at Kenya Revenue Authority offices in Nairobi and paid Sh3.4 million as details emerged on how MPs were baited into supporting the new Constitution by government with assurances tax payments would only apply to the next Parliament.
During the Speaker’s Kamukunji (informal meeting with members) last July, a month to the national referendum, MPs wanted to be told whether they would be subjected to the proposed taxation measures. 

During the meeting, which was attended by President Kibaki, Raila and Speaker Kenneth Marende, Attorney General Amos Wako government’s chief legal advisor counselled that MPs in the current Parliament would be exempted from taxation until the next one to be elected.
According to official sources, during the meeting KRA Commissioner General Mr Michael Waweru, who was on hand to receive Raila as he paid his taxes on Monday, was also said to have given a written undertaking to the MPs they would be exempted from tax.
Parliamentary sources have also confirmed that the Speaker has the relevant letters from the AG, as well as his legal opinion, and KRA. 

President Kibaki is said to have told the meeting the government would abide by AG’s legal opinion, a move that disarmed members who had vowed to oppose the new Constitution’s smooth passage.
AgreementBut on Monday Raila said he was not aware of any agreement entered between MPs and the AG prior to the referendum that excluded members of the current Parliament from paying taxes.
"I am not aware of that agreement. I read the Constitution and its superior to any other law," he stated. 

Article 210 of the Constitution states that no law may exclude or authorise the exclusion of any state officer from paying tax by reason of the office held by the state officer or the nature of the work of the state officers.
"This is not a self righteous move," Mutava said as he waved a copy of a tax compliance certificate to journalists. He also denied trying to pile pressure on other MPs to pay up. He explained he had paid this money in order "to be in step with Constitution" and out of "moral and personal responsibility."

At Times Tower, Raila was cheered by other Kenyans waiting to pay their income tax after he paid Sh3,392,344.
At his office thereafter he declared: "I have paid the balance of my taxes because the Constitution requires all Kenyans, including Members of Parliament, to pay taxes."
Raila was accompanied by Public Service Minister Mr Dalmas Otieno.
The step taken by Raila and Mutava may weaken MPs resistance to KRA’s demand they pay their arrears or risk seizure of their assets and freezing of their accounts.
It is also bound to intensify pressure on MPs to pay taxes, not just on their basic salary but full earnings which total Sh851,000 per month.

Deduct taxes
Raila, however, seemed to exonerate MPs from blame and instead accused accounting officers at Parliament and KRA of sleeping on their job by not ensuring MPs dutifully pay taxes.
"MPs should not be blamed because it is the responsibility of the employer to deduct tax and remit to KRA," he stated.

He cautioned KRA against harassing MPs as it pursues them to pay tax arrears dating to last September, totalling Sh700 million. Each of MP owes KRA about Sh3 million.
The PM explained what he paid was from an accumulated Sh6.51 million he earned from September last year as an MP and PM. 

From his salary as an MP, tax arrears stood at Sh1.4 million while from his pay as PM, tax arrears stood at Sh1.9 million. He clarified he earns an average of Sh1.6 million a month, not Sh3 million. "What I have paid is based on calculations by the Accounts Department in the Office of the Prime Minister and Parliament. If the calculations reveal that I need to pay more, I will. If I have overpaid, I expect a refund," he stated.
 
He added he had authorised the accounting officers at the National Assembly and his office to henceforth deduct taxes from his salaries and forward to KRA.
He added KRA seal loopholes that allow unscrupulous individuals evade paying taxes. Only two other MPs have been paying tax: Gatanga’s Peter Kenneth and Kagundo’s Johnstone Muthama.