What is the whole point of the 15 actions in the Base Erosion and Profit Shifting (BEPS) code? How will they curb tax dodging and make taxation of multinationals more transparent? Historically, the interaction of different tax policies lead to instances where taxes paid are not commensurate to economic value… – Continue reading
East African countries expect to collect more revenue under a new code drawn, by the world’s richest economies to stop foreign multinationals from dodging taxes in host countries. The new code — Base Erosion and Profit Shifting (BEPS) — adopted by G20 at its meeting in Turkey two weeks ago,… – Continue reading
Uncertainty over the US Federal Reserve’s rate hike decision caused lower returns for offshore investments by local pension schemes during the third quarter of the year, new data show. The Alexander Forbes Consulting Actuaries Schemes Survey for the period ending September 2015 covering 380 schemes indicates earnings by pension schemes… – Continue reading
The Kenya-South Africa double taxation agreement comes into force from January 1. An announcement in the November 19, South African government gazette says the agreement applies for taxes withheld at source. “A resident of Kenya will not be taxed on any South African business profits, unless it carries on business… – Continue reading
COUNTIES should harmonise taxes to promote intra-county trade and attract investments, the Kenya National Chamber of Commerce and Industry has said. KNCCI chairman Kiprono Kittony yesterday said high and uncordinated taxes and levies are unfavorable for businesses, a move that has kept trade low between counties. He said the business… – Continue reading
Kenya’s tax authority has launched a campaign to encourage people to report evasion and to crack down on staff misconduct, it said on Tuesday, after media allegations of corruption. The Kenya Revenue Authority (KRA) said it will vet staff for misconduct and step up efforts to prevent abuses when calculating… – Continue reading
x The Kenya Revenue Authority (KRA) has slapped higher taxes on importers of second-hand vehicles ahead of a new duty that will push the prices up by Sh200,000. The revenue authority reviewed the current retail selling price of second-hand vehicles in October 15. This is the benchmark the taxman uses… – Continue reading
The government has been accused of opening a loophole that allows super rich individuals and multinational companies to avoid taxes. The Tax Justice Network (TJN), a lobby group, has sued the government over agreements, which it says are robbing Kenya of the ability to raise revenues domestically, driving the country… – Continue reading
Rwanda has commissioned an audit into recent merger and acquisition deals involving foreign firms in its latest effort to clamp down on tax avoidance among multinational corporations. This comes amid growing concern that multinational companies move profits from the countries where they are generated and, in so doing, reduce national… – Continue reading
Major tax administration reforms are expected after Kenya Revenue Authority (KRA) Commissioner General John Njiraini was made to cut short the release of quarter one performance on Monday following a call from State House. KRA has already moved to deepen its capacity by inviting former employees to boost its capacity… – Continue reading
EBENE, Mauritius, Oct 12 (Reuters) – Mauritius plans to launch a trading platform to hedge African currencies against the U.S. dollar, part of a bid to expand its role as a financial hub for the continent, the financial services minister said. The Indian Ocean island is also in talks to… – Continue reading
NAIROBI: The Kenya Revenue Authority (KRA) deserves a special commendation for daring to aim high by targeting to raise Sh5.3 trillion in the next three years. The tax body aims to do this, not by raising taxes—as some would advise it to—but by bringing into the tax bracket 4.4 million… – Continue reading
NIGERIA’S recent rating as “third to the last” on the 2015 global ranking of “Ease of paying taxes” is a good indication of why the country is not earning as much as it should from taxation. The country’s ranking as 187 among 189 economies covered by the survey, which assessed… – Continue reading
NAIROBI, Kenya – The World Bank’s private arm, the International Finance Corporation (IFC) has jointly launched a business transparency initiative with the Swiss government, to promote corporate leadership in East Africa with the aim of helping firms attract foreign investments. The aim of the new initiative is to help firms… – Continue reading
Mombasa county has launched another attempt to collect levies on cargo at the port after earlier attempts were rejected by the Kenya Ports Authority (KPA). Through the Finance Bill 2015/2016, the county wants to directly tax shipping lines and cargo owners unlike in the previous bid where it sought to… – Continue reading
On July 28, 2015 the Dutch Government published the English text of the Convention between the Kingdom of the Netherlands and the Republic of Kenya for the avoidance of double taxation and the prevention of fiscal evasion with respect to taxes on income (hereafter: the DTA) and a relating Protocol,… – Continue reading
CHINA: MANAGING IP TAX CHALLENGES IN BEPS ENVIRONMENTABU DHABI // The UAE Embassy in Nairobi has temporarily suspended its consular services, it was confirmed on Tuesday. An employee at the embassy said that Kenyans wishing to apply for a work visa or attestations for the UAE will not be able… – Continue reading
NAIROBI: The civil society in Kenya wants Parliament to join them in the push to end tax evasion through enactment of laws that enhance compliance from international trade. This, they argue, will boost revenue collection by the State. They say tougher laws will criminalise tax avoidance and spell harsher penalties… – Continue reading
An agreement signed between Kenya and the American government could introduce new drastic measures in curbing corruption and help seal loopholes in the dwindling war against the vice in the government. But the initiative could dampen hopes of Cabinet secretaries mentioned in various corruption scandals of ever getting back to… – Continue reading
Kenya collected 1.001 trillion shillings ($10 billion) in the fiscal year to end-June, a 3.86 percent increase from the previous year, the Treasury said on Wednesday. Officials in East Africa’s biggest economy are aiming at increasing tax collections to fund several infrastructure projects, including a new railway, and pay for… – Continue reading
Kenya signed several pacts with the US during talks between US President Barack Obama and Kenya’s President Uhuru Kenyatta, signalling a deepening of bilateral relations in trade and investment. Addressing a joint press conference, President Obama said discussions on the prospects of introducing direct flights between the two countries were… – Continue reading
One of the most immediate and obvious consequences of globalisation is the impact of domestic tax policies in other countries on the economy of Tanzania. This has necessitated the continuous evaluation of the tax regime in Tanzania and brought about crucial fiscal and economic reforms in the country. Hence, the… – Continue reading
Step aside, Doctors Without Borders. A new class of professionals is ignoring national frontiers to come to the aid of economically struggling nations. A team called Tax Inspectors Without Borders will begin helping developing countries deal with the flood of income to low-tax jurisdictions once it’s established next week by… – Continue reading
Kenyans in the US will be protected from double taxation, the Kenyan ambassador to the US, Robinson Githae, has said. Mr Githae said he understood the concerns of Kenyans in the US after a provision of a federal law requiring US citizens and permanent residents (green card holders) to report… – Continue reading
The Policy and Advocacy Manager of Tax Justice Network – Africa (TJN-A) has urged African governments to review tax incentives for free zone companies. “Tax incentives must apply to companies that have something to show. These companies must be able to create massive employment and other services to benefit the… – Continue reading
A new campaign to stop Africa from ‘bleeding’ was launched on Thursday in Nairobi by the Tax Justice Network-Africa (TJN-A), a coalition of researchers and activists focused on the harmful impacts of tax avoidance, tax competition and tax havens. “If we can stop Africa from losing resources in illicit outflows,… – Continue reading
The Government of Netherlands has successfully negotiated the inclusion of anti-abuse provisions, aimed at combating cross-border tax avoidance, in tax treaties with Ethiopia, Ghana, Kenya, Malawi, and Zambia. At present, talks are being held with another seven countries and new agreements with several other countries are expected to be concluded… – Continue reading
Transfer pricing has emerged as a key focus area both globally and locally. From an international scene, the OECD/G20 venture — a club of advanced countries in Europe and North America, has been working on action plans to help tax administrations deal with Base Erosion and Profit Shifting (BEPS) project…. – Continue reading
BANKS are unable to directly recover the huge sums of money stolen from their customers via online transactions if the cash is stashed in offshore accounts, its association said yesterday. The Kenya Bankers Association chief executive officer Habil Olaka said most countries like Mauritius or Switzerland where fraudsters hide the… – Continue reading
An OECD initiative on tax evasion is causing ripples around the world While a host of topics — from the necessity and the proposed scope of corporate tax reform, to corporate rate reduction and corporate inversions — are of major concern to those engaged in international tax, the overriding issue… – Continue reading
Chinese investors in Kenya have asked the East African Community to implement a double taxation agreement (DTA), saying the current regime has hurt their expansion plans. The investors with interests in construction, trade, service industry, manufacturing and real estate sectors said they currently face a heavy burden paying the same… – Continue reading
ABU DHABI: The UAE Cabinet on Sunday endorsed hosting the headquarters of the joint Police Force of the Gulf Co-operation Council (GCC) in Abu Dhabi. By hosting the GCC Police Force, the UAE aims to foster its relations with the other Gulf countries to safeguard the region from any form… – Continue reading
ABU DHABI: The UAE Cabinet has on Sunday endorsed hosting the headquarters of the joint Police Force of the Gulf Co-operation Council (GCC) in Abu Dhabi. By hosting the GCC Police Force, the UAE aims to foster its relations with the other Gulf countries to safeguard the region from any… – Continue reading
NAIROBI: Insurance brokers have contested the introduction of 10 per cent levy on their brokerage commission. Eighteen insurance brokerage firms have moved to court under a certificate of urgency, suing Commissioner of Domestic Taxes and the Attorney General. The firms complain that introduction of 10 per cent levy on their… – Continue reading
Nairobi — The Kenya Revenue Authority (KRA) wants tax incentives offered to foreign investors withdrawn. The proposal to eliminate tax incentives and concessions offered to foreign investors is aimed at boosting revenue collection to accelerate national development. Speaking at the ongoing Biennial Ambassadors/High Commissioners conference in Kwale, KRA Commissioner General… – Continue reading
The long-awaited double tax agreements entered into by Kenya with South Africa and Mauritius respectively did not come into force on 1 January 2015 as expected. The treaty between Kenya and South Africa that was signed in November 2010 was ratified by Kenya in October 2014, following earlier ratification by… – Continue reading
Although the importance to Africa’s diaspora is largely discussed around remittances, many Africans are also coming back to join the public service. SOMALIA’S parliament just approved a new parliament, a crucial step on the road to voting on a new constitution and presidential elections scheduled for 2016. A key role… – Continue reading
Documents detail customers who faced allegations including drug-running, corruption, doping and money laundering This article is the subject of a legal complaint made on behalf of Anura Perera. HSBC’s Swiss bank concealed large sums of money for people facing allegations of serious wrongdoing, including drug-running, corruption and money laundering, leaked… – Continue reading
By Eugene Okumu and Lola Okulo KENYA has been ranked 58th in a global list of countries with the most dollar deposits in Swiss banks, at a whopping Sh51.18 billion ($559.8 million). This is according to a leaked report titled Swiss Leaks, compiled by the International Consortium of Investigative Journalists… – Continue reading
Two double taxation agreements (DTAs) involving Kenya, South Africa and Mauritius have been set back a year after Kenya failed to complete the final step in the proceeds. The DTAs between Kenya and South Africa and between Kenya and Mauritius had been signed by the three countries and were due… – Continue reading
NATIONAL Treasury Cabinet Secretary Henry Rotich has urged counties to make taxation systems business friendly. Speaking at Leisure Lodge resort in Kwale yesterday during a county government development forum, Rotich said investors face multiple taxation in some counties. “It is very clear what the national government and counties are supposed… – Continue reading
Weak governance means Africa loses more than $50bn each year in unpaid taxes and money laundering, a new report has found. The analysis, published jointly by the African Union and the United Nations Economic Commission for Africa, concluded that a lack of financial transparency and difficulties in obtaining systematic data… – Continue reading
Kenya, India to ratify double taxation agreement NAIROBI, Feb. 10 (Xinhua) — Kenya and India will soon ratify an agreement on the avoidance of double taxation, officials said on Tuesday. India’s Deputy High Commissioner to Kenya Sushil Singhal told Xinhua in Nairobi that the ratification of the agreement signed in… – Continue reading
Kenya was conned of more than Sh78 billion through corruption and tax evasion between 2003 and 2012, a US-based research firm has reported. Researchers from Global Financial Integrity (GFI) compiled the losses, which they describe as “modest” considering gaps in information, but could be bigger than all mega-scandals, including Goldenberg,… – Continue reading
THE media and civil society organisations should join hands and work together to ensure a fair taxation system in Africa, an advocacy group has said. Tax evasion, illicit financial flows and harmful tax incentives are rampant among governments, investors and multinational companies in Africa, Tax Justice Network’s Africa executive director… – Continue reading
In the African tax sphere, the trend remains for headline tax rates to continue to remain stable or decrease. Withholding tax rates have generally remained stable, although the experience of Dentons and our clients is that African tax authorities are requiring tax to be withheld from payments that have not… – Continue reading
REGIONAL businesses continue to suffer from double taxation three years after a plan to harmonise taxes was approved, causing a delay in realisation of East Africa Community integration benefits. Kenya Association of Manufacturers CEO Betty Maina said the tax issue needs to be urgently addressed by ensuring all member countries… – Continue reading
In today’s global economy, where multinational companies do business in different geographical and tax jurisdictions, the need for arm’s length pricing of related party transactions is a growing concern for revenue authorities. Tax bodies are increasingly requiring multinationals to document their related party transactions. Where these transactions are not well… – Continue reading
Tax Justice Network Africa, which campaigns against harmful tax policies that favour the wealthy and perpetuate inequality, has moved to the High Court to stop a double-taxation treaty between Kenya and Mauritius. Mauritius is a popular tax haven for companies with multinational operations, tilting scales against countries that sign bilateral… – Continue reading
A tax civil society has sued National Treasury Secretary Henry Rotich over an ‘illegal’ agreement signed with Mauritius, in a major litigation that could affect thousands of companies operating in Kenya. The suit filed at the High Court by Tax Justice Network-Africa (TJN-A) demands that Rotich withdraws a taxation treaty… – Continue reading
