In my third interview with Max and James of KuvaCash, I examined their legal opinion that the new 2% tax on transactions doesn't apply to them. Dash for the win!
With regards to the impending KuvaCash launch proposal, there have been questions about if the new 2% tax applies. The new tax is very unpopular and would be a nuisance to collect etc.
https://www.news24.com/Africa/Zimba...otests-planned-against-illegal-2-tax-20181009
Spoiler: The new tax doesn't apply to Kuva/Dash and is a significant competitive advantage.
This legal opinion was determined with exhaustive, in depth analysis. There are at least three reasons why the new tax does not apply to Kuva/Dash. In addition to analyzing the specific new law itself, the legal firm examined the Finance Act, the Income Tax Act and the Mobile Banking Act, among others.
If I can boil down the 7 page conclusion even more, this is not even a grey area. The new tax does not apply. They referred to it as a “fortified” opinion. Rendering this opinion also would have significant if not severe repercussions for them (the law firm) if they were wrong.
The main arguments are:
- The transfers are done in a cryptocurrency (Dash), which is not an e-money technically and legally.
- Kuva never has custody of the customer’s or the merchant’s money.
- The servers and software do not reside in Zimbabwe.
I also confirmed that this is a real law firm that deals routinely with these specific kinds of legal and bureaucratic questions.
