Meta Platforms Inc, which was formerly known as Facebook , Inc., has now updated its terms and conditions to make it possible for it to provide personal information on its users to investigative authorities and tax authorities from January 2023. This means that the Kenya Revenue Authority (KRA) will now be able to better discover and or monitor businesses using Meta’s platforms to generate revenue.
In the updated terms and conditions for Meta Platforms Inc which also owns WhatsApp, Instagram, and Facebook the American multinational technology conglomerate, made it known that entrepreneurs who make use of any of its platforms to sell their products or advertise their products will by so doing, give permission for the platform(s) to share the dealings of said entrepreneurs to a governmental organization or entity if it is believed that said dealings could be of use during a lawful investigation.
The new terms and conditions will be implemented from the 3rd of January 2023.
The dealings in question, include the contents being advertised as well as any information connected to the publicity made in its platform.
It is expected that this will lead to a significant boost in the revenue collected from the Kenya Revenue Authority (KRA). The government agency has in recent times also beefed up efforts to effectively surveil individual Kenyans that show off expensive ways of living on social media platforms while paying very little in taxes or nothing at all.
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According to reports, the Kenya Revenue Authority (KRA) has faced some challenges with regards to ensuring that companies that conduct business online are paying their Digital Service Taxes (DSTs) which is set at an equivalent of 1.5 percent of the gross or total transaction value.
The Kenya Revenue Authority (KRA) aims to in the next three (3) years, collect a total of 13.9 billion Kenyan Shillings from Digital Tax from companies and establishments that use the internet to sell products and market products in Kenya.
It has singled out a number of international companies that get or generate income from Kenya via digital marketplaces by either providing platforms for sales to occur or selling entirely online, a an integral generator of taxes in the years to come.
In January of 2021 Digital Service Tax (DST) was implemented in Kenya and is currently levied on the sale of music, movies, games, ebooks as well as other digital content. The Digital Service Tax (DST) also applies to international companies.
The Tax collection target set by the Kenya Revenue Authority (KRA) is Ian indicator that companies like proprietary Swedish audio streaming and media services provider; Spotify, American subscription streaming service and production company; Netflix and American multinational technology company specializing in consumer electronics, software and online services; Apple, are projected to generate revenue of around 926 billion Kenyan Shillings in three (3) years.
The Kenya Revenue Authority (KRA) is looking to bring in more individuals into the tax bracket and reduce cases of tax evasion and tax fraud so as to meet and surpass its tax collection targets.
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The Kenya Revenue Authority (KRA) has also identified wealthy individuals who have taken steps to hide their sources of income while also engaging in the accumulation of property and lavish spending including the purchase of expensive cars and residential homes.
Apart from investigating social media platforms the Kenya Revenue Authority (KRA) has in addition, been making use of a number of other databases to go after suspected tax frauds. These include importation records, water bills, Kenya Power and Lighting Company (KPLC) records, bank statements, vehicle registration information, and information from the Kenya Kenya Civil Aviation Authority (KCCA). The Kenya Kenya Civil Aviation Authority (KCCA) also discloses the owners of assets like helicopters.
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The meter registrations for Kenya Power and Lighting Company (KPLC) for example, are making it possible for the Kenya Revenue Authority (KRA) to successfully identify more landlords. As a result, a number of said landlords are more facing significant tax demands.
The registration information for vehicles have been utilized as well in the discovery of all individuals who do not do anything with regards to paying their taxes.
In addition Meta Platforms Inc, has started that any failure to remunerate dues to the advertising account in a timely manner, could lead to legal action.
The company added that if an account’s payment is overdue or if a payment method is unsuccessful, more steps would be taken to ensure the collection of payments due. This will include the hiring of a debt collection agency.
According to Meta Platforms Inc, “You will pay all expenses associated with such collection, including reasonable legal fees. Past due amounts will accrue interest at 1.0 percent per month or the lawful maximum, whichever is less.”
Meta Platforms Inc, stated that it can make use of data about how its users interact with advertisements as well as other commercial content, and carry out the categorization of its users as non invoiced or invoiced while also monitoring the creditworthiness of its users.
Part of its terms of service says, “Meta may classify clients as invoiced clients based on factors such as ad spend and creditworthiness. You understand that, from time to time, we run tests on our Self-serve Ad Interfaces and related systems, which may affect your use and experience thereof, including campaign performance.”
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It stated that, “If you are making direct debit payments, you agree that we can charge you any amount that falls within the range that you agreed to upon sign-up. We will notify you in advance if any charge will exceed the agreed-upon range.”
According analytics company Statista the East African nation of Kenya, currently has 22.2 million WhatsApp users daily, more than twelve (12) million Facebook users, and two (2) million Instagram users.
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Meta Platforms Inc, has been faced with lawsuits pertaining to privacy violations and information leaks at a time when data changes and restrictions have continued to grow in the digital advertising space.
Kenya’s Data Protection Act states that personal data shall not be transferred outside the country unless there is proof of consent from the data subject or adequate safeguards.
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