Create Profile

Creating your profile will enable you to submit photos and stories to get published on News24.

Please provide a username for your profile page:

This username must be unique, cannot be edited and will be used in the URL to your profile page across the entire 24.com network.

Facebook Sign-In

Hi News addict,

Join the News24 Community to be involved in breaking the news.

Log in with Facebook to comment and personalise news, weather and listings.


Govt takes action to curb global tax evasion

18 February 2016, 09:47

Nairobi -  The government pledged on Wednesday to fast-track ratification of international tax evasion and avoidance agreement in a bid to tackle international tax evasion and avoidance vices.

Kenya Revenue Authority (KRA) Commissioner General, John Njiraini said Nairobi has signed the Multilateral Convention on Mutual Administrative Assistance in Tax Matters, joining the league of 93 global nations united to address the economic vices.

"At the end of the day, we do not see that there is any significant difference between straight tax evasion and abusive tax avoidance, which works to abnormally lower tax exposure," Njiraini said in a statement issued in Nairobi.

Foreign firms have for years been accused of using tax avoidance schemes, including registering subsidiaries in offshore tax havens and using them to minimise payments in another jurisdiction.

Njiraini said the signing of the crucial agreement last week by the Kenyan Ambassador to France, Salma Ahmed, in the presence of the Organisation for Economic Co-Operation and Development Deputy Secretary General, Douglas Frantz, makes Kenya the 94th jurisdiction to join the most powerful multilateral instrument against offshore tax evasion and avoidance.

Njiraini confirmed that the Tax Authority is looking forward to the speedy ratification of the agreement. The country, he said, has already made tremendous progress in strengthening local capacity for addressing international tax avoidance.

Such progress, he noted, includes KRA's recent establishment of a formal structure to address International Tax Avoidance and to support Tax Information Exchange with other signatories of the Multilateral Convention on Mutual Administrative Assistance in Tax Matters.

Njiraini noted that the recent enactment of Tax Procedures Bill into law, now demonstrates the seriousness with which Kenya takes international tax avoidance.

"The new law imposes stiff penalties for engagement in international tax avoidance schemes. The penalty imposed can be as high as double the tax avoided," Njiraini said.

Such a stiff penalty, Njiaraini explained, reflects Kenya's desire to stamp out retrogressive practices, which multinational operators use to avoid paying their fair share of tax.

The Multilateral Convention on Mutual Administrative Assistance in Tax Matters aims to respond to the call by the G20 to align it to the international standard on exchange of information and to open it to all countries, thus ensuring that developing countries could benefit from a more transparent environment.

For the latest on national news, politics, sport, entertainment and more follow us on Twitter and like our Facebook page!

- Xinhua


Read more from our Users

Submitted by
Wilwon Ochieng
Deputy Governor's ally found with...

The EACC has recovered KES 2 million in fake currency from a close ally of Deputy Governor for Tharaka Nithi Eliud Mati. Read more...

Submitted by
William Korir
Mudavadi given permission to join...

Musalia Mudavadi has been ghranted permission by his party to join the CORD Coalition. Read more...

Submitted by
Victor Tinto
EACC officers raid Deputy Governo...

EACC officers raided the home of a Deputy Governor as theft case continues in court. Read more...

Submitted by
Wilson Ochieng
New IEBC bosses to be named Novem...

New IEBC bosses will be named on November 30. Read more...

Submitted by
William Korir
DP Ruto has spoilt my name, activ...

DP William Ruto has spoilt my name, activist complains. Read more...

Submitted by
Wilson Ochieng
Apologise for attack on Auditor G...

Apologise for attack on Auditor General, President Uhuru Kenyatta is told by Kisumu Senator Anyang Nyong'o. Read more...