Download Advanced Public Finance and Taxation PDF notes
PAPER NO.16 ADVANCED PUBLIC FINANCE AND TAXATION GENERAL OBJECTIVE
This paper is intended to equip the candidate with knowledge, skills and attitudes that will enable him/her to address advanced public finance and taxation matters in public and private sector entities.
Table of Contents
LEARNING OUTCOMES
A candidate who passes this paper should be able to:
- Design a tax policy
- Compute tax for complex aspects of companies and specialised entities
- Apply tax laws in mitigating tax costs for various tax payers
- Analyse the taxation issues associated with international transactions
- Apply advanced public financial management principles in practice
CONTENT
External resource financing
- Establishment of External Resource Department in the National Treasury
- Role played External Resource Department in raising of external finances
- Book keeping and management of donor funds
- Regulation of grants administration
- Monitoring of public projects through clients connections and EPROMIS
- Development partners and contractual agreements
Public Investments
- Establishment of government investment departments
- Mandate of government investment departments
- Establishment of State Corporations (State Corporation Act Cap 446)
- Role of Public Investments Board; KenInvest
- Other players in public investment
Public Private Partnerships arrangements
- PPP models
- PPP parties, (PPP committee, PPP unit, contracting authority, PPP nodes, transactional advisor)
- Contract/project agreements, guidelines and standards
- Composition and role of PPP petition committee
- Establishment and role of PPP project facilitation fund
- PPP projects in the country- case study
Public debt management
- Establishment of debt management office
- Objectives of debt management in public sector
- Sources of public debt in Kenya
- Debt management strategy paper
- Relationship between debt management and budget process
- Debt sustainability analysis
- Comparative study of debt management strategy in East Africa Community
- Management of debts county governments and other public entities
- Role of Cabinet Secretary of the National Treasury in public debt management
Advanced aspects of the taxation of business income
- Conversion of partnerships into liability companies, and incorporation of incoming and retiring partners during the year
- Limited companies, including holding companies, taxation of related parties
- Charitable institutions
- Leasing entities
- Co-operative societies
- Trade associations and clubs Taxation of extractive industries
- Banking, insurance, sea and air transport undertakings
- Unit trusts
- Real estate investment trusts (REITS)
- Property developers and contractors
- Application of relevant case law
Tax administration and investigations Investigations and enforcement department
- Tax fraud
- Events which may trigger an investigation
- Tax investigation
- Back duty and in-depth examinations
- VAT computation, imported services, VAT withholding agents, restriction on input tax claim submission of VAT documents, VAT documentation refunds, false claims and accountant’s certificate
- Compensating tax
- Incorrect and fraudulent returns
- Customs and excise investigations
- Negotiation for settlement
- Tax audit
- Appellant bodies and appeal procedures
- Alternative dispute resolution mechanism
- Application of relevant case law
Taxation of cross border activities
- Distinction between trading in and trading with a country; double taxation agreements; theory, design and application
- Regional perspective with reference to the East African Community (EAC) and the Common Market for Eastern and Southern Africa (COMESA)
- Most favoured nation status
- Generalised system of preference and AGOA
- Withholding tax provisions
- Tax havens and treaty shopping
- Tax information exchange agreements OECD
- Transfer pricing
- Application of relevant case law
Tax planning
- Tax planning for individuals
- Identifying opportunities to alleviate, mitigate or defer the impact of direct or indirect taxation
- Evaluating remuneration packages
- Tax avoidance and anti-avoidance provisions
- Uses of tax incentives
- Disposal of business operations and restructuring of activities
- SEZA
- Tax risks
Tax systems and policies
- Types of tax systems
- Role of taxation in economic development
- Design of a tax policy
- Criteria for evaluation of a tax system
- Tax reforms and modernisation of tax systems under various Acts
- KRA structure – LTO, MTO
Professional practice in taxation
- Forms of tax practice and matters relating thereto
- Matters relating to new clients
- Handling of client work
- Disclosures in tax returns, computations and correspondence with the Revenue Authority
- Moral and ethical issues in taxation
- Tax agents, appointment, obligations, professional liability
- Cancellation of tax agents licence
- Role of tax agents in appeals procedure
- Tax health check,