Kenya has been cautioned against bilateral treaties with tax haven jurisdictions, with the Tax Justice Network Africa saying they rob the country of billions in tax evasion. Kenya already has has double tax avoidance treaties with Canada, Denmark, France, Germany, India, Iran, Norway, Sweden, United Kingdom, Zambia, South Africa. The treaties will in most cases allow for the set-off of withholding tax against tax liability in the respective countries. “There is a need to evaluate both tax treaties in relation to how they are likely to negatively affect Kenyan tax law,” TJNA notes. The revenue implications of the various benefits, and possible losses from exemptions in tax treaties must also be evaluated against the conceivable gains.

Source: The Star January 12, 2021 02:03 UTC