Public Finance and Taxation Syllabus

CONTENT
Introduction to Public Financial Management Legal Framework-

·         General overview of Public Financial Management as envisaged by the Constitution

·         Overview of the Public Financial Management Act-Financial regulations –

·         Treasury Circulars; meaning and application-

·         Process of developing county government finance bills

The operations of the national and county governments on management and control of public finance –

·         Establishment of National and County Treasuries-Responsibility of National and County Treasuries with respect to public funds-Establishment, purpose and composition of intergovernmental budget and economic council

·         -The Process of sharing revenue –

·         The role of the Commission on Revenue on Allocation (COR) –

·         The role of the Council of Governors in County financial management

Establishment of public funds in the public sector –

·         Provision of establishing public funds

·         -Rationale of creation of public funds-

·         The Consolidated Fund-The establishment and administration of contingency funds-

·         The establishment and administration of equalization funds

Supply chain management in public entities –

·         Definitions and terminologies –

·         General overview of Public Procurement and Disposal (PPD) Act –

·         Procurement guidelines as envisaged by PPD Act –

·         Committees responsible for procurement –

·         Procurement process by National, County and other Public entities –

·         Tendering process and selection of Suppliers in public sector

·         -Concept of E-procurement

Oversight function in public finance management –

·         The role of National Assembly

·         -The role of Senate –

·         The role of County Assembly –

·         The role of Auditor General –

·         The role of Internal Audit –

·         Role of Controller of Budget in relation to disbursement of public Funds as envisaged by the Constitution and PFM Act, 2012

Introduction to taxation

·         -History and purposes of taxation-

·         Principles of an optimal tax system-

·         Single versus multiple tax systems-

·         Classification of taxes and tax rates-

·         Impact incidence and tax shifting, tax shifting theories-

·         Taxable capacity

·         -Budgetary and fiscal policy tools: General definition of budgets terms ,Budget surplus and deficits

·         -Role of budget officers in budget preparation and execution

·         -Responsibilities of the national and county treasury in relation to budget preparation –

·         Budget process for both national, county and Public entities-Revenue Authority –

·         History, structure and mandate

Taxation of income of persons-

·         Taxable and non taxable persons-

·         Sources of taxable incomes-

·         Employment income: Taxable and non taxable benefits Allowable and non allowable deductions Tax credits (Withholding tax, personal and insurance relief etc) Pension Income-

·         Business income: Sole proprietorship Partnerships (excluding conversions) Incorporated entities (excluding specialized institutions) Turnover tax-Income from use of property

·         -rent and royalties-Farming income-Investment income-

·         Capital gains tax

Capital deductions-

·         Rationale for capital deductions-

·         Investment deductions: ordinary manufacturers-

·         Industrial building deductions-

·         Wear and tear allowances-

·         Farm works deductions-

·         Mining allowance-

·         Shipping investment deduction-

·         Other deductions

Administration of income tax-

·         Overview of the income tax act-

·         Identification of new tax payers-Assessments and returns

·         Operations of PAYE systems: Preparation of PAYE returns, categories of employees Notices, objections, appeals and relief of mistake Appellant bodies Collection, recovery and refund of taxes Offences, fines, penalties and interest

·         Application of ICT in taxation: iTax, Simba system

Administration of value added tax-

·         Introduction and development of VAT-

·         Registration and deregistration of businesses for VAT

·         -Taxable and non taxable supplies-

·         Privileged persons and institutions-

·         VAT rates-

·         VAT records-Value for VAT, tax point-

·         Accounting for VAT-

·         VAT returns -Remission, rebate and refund of VAT-

·         Rights and obligations of VAT registered person-

·         Offences fines, penalties and interest-Enforcement –

·         Objection and appeals: Requirements and procedure

·         -Challenges in administration of VAT

Customs taxes and excise taxes –

·         Customs procedure –

·         Import and export duties-

·         Prohibitions and restriction measures-

·         Transit goods and bond securities-

·         Excisable goods and services –

·         Purposes of customs and excise duties-

·         Goods subject to customs control-

·         Import declaration form, pre-shipment inspection, clean report of findings-

·         Other revenue sources

6.12 Emerging issues and trends