Governance and Taxation in the New Constitutional Dispensation Final

8/4/2019 Governance and Taxation in the New Constitutional Dispensation Final

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TheKenyaAnti-CorruptionCommission

Presented Dr. Arbogast Kemoli Akidiva

Principal Officer Education/CoordinatorPreventive Services Directorate

Ethics and Anti-Corruption Commission

During the International Business InformationManagement Association Kenya Chapter

Seminar entitled, Tax Compliance,

Transparency, Accountability, and Reporting


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Anti-CorruptionCommission

Without good governance, no amount of oil

or no amount of aid, no amount of effort can

guarantee Nigerias success. But with good

governance, nothing can stop Nigeria.

President Barack Obama on good governance

in Nigeria

Dr. Arbogast K. Akidiva - Governance and Taxation in the New Constitutional Dispensation 2Tuesday, April 17, 2012


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Globalization

Internationalization

Democracy

Knowledge Society

HRBAD Bad Governance and Corruption

Crises of Legality and Legitimacy



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Principle of Common/Public Good

Rights and Freedoms

Duties and Responsibilities

Delegated Authority

Governance Defined

the process and institutions by which authority in a

country is exercised. It is the process by which

governments are selected, held accountable,

monitored and replaced

Governments capacity to manage, formulate,implement, and enforce good policies and regulations

in relation to resources and service provision

Dr. Arbogast K. Akidiva - Governance and Taxation in the

New Constitutional Dispensation 4Tuesday, April 17, 2012


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The States Capacity to Promote Public Good

Demonstrating Commitment to Public Good

Championing Transparency and Accountability

Ensuring that Rule of Law is observed

Providing for Voice and Participation

Nurturing Social Capital

Dr. Arbogast K. Akidiva - Governance and Taxation in the

New Constitutional Dispensation 5Tuesday, April 17, 2012


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Leadership and Governance in the New Constitutional Order

Framing Context

Kenya Vision 2030

Constitution of Kenya 2010 Article 10 (i) provides: The national values and principles of

governance in this Article bind all State organs, State officers, public

officers and all persons whenever any of them

applies or interprets this Constitution;

enacts, applies or interprets any law; or

makes or implements public policy decisions. And

(2) The national values and principles of governance include

patriotism, national unity, sharing and devolution of power, the

rule of law, democracy and participation of the people;

human dignity, equity, social justice, inclusiveness, equality,

human rights, non-discrimination and protection of the

marginalised;

good governance, integrity, transparency and accountability;

Sustainable development. Dr. Arbogast K. Akidiva - Governance and Taxation in theNew Constitutional Dispensation 6Tuesday, April 17, 2012


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Levels of Devolution Levels

Political

3 Tier System: National, County and Local Authorities

Administrative

Economic

Process of Devolution

(i) Big Push versus Small Steps;

(ii) Bottom Up versus Top Down

(iii) Uniform versus Asymmetric Devolution.



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Corruption = Inclination + Opportunity

C (Corruption) = M (Monopoly Power) + D (DiscretionaryPower) A (Accountability) R. Klitgaard et. al.

Corruption is a transaction or attempt to secure

illegitimate advantage for national interests or privatebenefit or enrichment, through subverting or suborning a

public official or any person or entity from performing

their proper functions with due diligence and probity.

Fraser-Moleketi The systematic use of public power/office for private

benefit whose impact is significant on access, quality,

and equity in the human development process.



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a) Complex Tax Systems

b) Unchecked Discretionary Powerc) Political Parties Financing

d) Opaque and Complex Rules, Laws and Processes

e) Punitive Penalty Systemf) Lax Institutional Controls

g) Frequent Contacts between Taxpayers and TaxAdministrators



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Change Administrative Systems to Corruption

Reengineer administrative systems or procedures toenhance transparency and predictability

Introduce automation to limit official discretion and face-to-face contact

Implement Job Rotation and Staff Mobility Schemes

Publish Criteria on Official Delegation of Authority

Select Tax Officials based on Integrity, Academic andTechnical Competency

Use Integrity Testing Programmes such as PsychometricTests



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o Change Rewards and Penalties facing Tax Officialsand Clients

1) Restructure Bonus/ Rewards Systems to ReinforcePositive Behavior

2) Encourage and reward officials who identifyvulnerabilities in administrative systems and procedures

3) Increase Penalties as Disincentive to engage in corrupt

behavior4) Ensure that penalties are calibrated to correspond to the

offense

5) Ensure that all officials, regardless of rank, are subjectto the same penalties



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Increase Corruption Detection Likelihood

Undertake Analysis of Tax Administrative Systems

Assess Internal Controls, Reporting Relationships, StaffCompetence, Official Delegations, and Decision-MakingPowers

Identify Arenas of Corruption and institute Safeguards

Strengthen Internal Audit and Investigation Units Establish an Anonymity Corruption Reporting System

Alter Attitudes of staff and Stakeholders to Corruption

Set Tone at The Top and Raise moral costs of corruption

Implement Robust Professional Development and Training Develop and Socialize a Code of Conduct

Introduce a zero tolerance policy for acceptance of gifts

Name and Shame Corrupt officials



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Provides for National and County Governments Taxregimes

Compels State and Public Officers to pay Taxes Full details of tax waivers and exemptions be fully

recorded Reasons for the waivers be fully explained

A report be made to the Auditor General on each waiver The above provisions are consistent with the principles of

Transparency and Accountability, Responsibility andResponsiveness



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Interpreters of and Bridges to the Past, Presentand Future

Promoting Common/Public Good and HRBAD Principles

Practitioners in Public and Private Sectors

Upholding highest professional standardsCreators of Knowledge and a Change Agents

Role of Academician - Multiplier Effect

Coaching/Role Modeling/Mentorship

Members of the Community

undertake advocacy and advisory functions calling for

probity in the governance Processes

Champion Social interest matters

Dr. Arbogast K. Akidiva - Governance and Taxation in the New Constitutional

DispensationTuesday, April 17, 2012 14


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Enter into Integrity Pacts at the Personal and

Institutional Levels. Enact Legislation on Enforcement of Professional

Standards

Establish Codes of Conduct and Ethics

Make Wealth Declarations and Establish Follow-up

Provisions Implement Transparent and Effective Conflict-of-

Interest Guidelines

Implement Deregistration Mechanisms to ensureAccountability, Transparency and Responsibility.

Operationalize Information Disclosure Mechanisms

Institute Civil Society Oversight

Establish Robust Complaints Handling Mechanisms

Institutionalize Community of Practice

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DispensationTuesday, April 17, 2012 15


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it is far easier to have a good, clean governmentadministering a good, clean system than it is for a

good anti-corruption agency to clean up a corrupt

government and crooked system.

Chua Cher Yak, Director Corrupt Practices

Investigation Bureau, Singapore 2002

THANK YOUTuesday April 17 2012 Dr. Arbogast K. Akidiva - Governance and Taxation in theNew Constitutional Dispensation 16

Documents

Governance and Taxation in the New Constitutional Dispensation Final