Court case:Treasury agreements aiding the rich evade paying taxes

id : 107 Litigation   
posted by : Tnews
 DOQ : 2020-10-13 14:46:47

Court case: Treasury agreements aiding the rich evade paying taxes
This claim is contained in a court case questioning the government’s double taxation agreements sanctioned by the Treasury.
“The claim that for the double taxation agreements (DTAs) instead of having a fair agreement, it is skewed towards the capital-rich.
One of the agreements is a deal with Mauritius, a country with lower tax rates compared to Kenya.
In the deal, Kenya agreed that profits collected from operating aircraft shall be taxable in the country that the companies are registered. In event the partner country decides to charge tax, it cannot exceed 50 per cent of its tax bracket.
Tax Justice Network Africa (TJNA) and Katiba Institute (KI) through their lawyer Bashir Mohammed said that all the 10 DTAs signed appear to be similar and they limit withholding tax to 10 per cent. “Whereas the Kenyan domestic rate is 20 per cent, adding that the agreements also exempt capital gain taxes of any moveable properties including shares in Kenyan companies.
It is claimed that companies established in the partner states and which have a ‘permanent establishment’ in that country for six months are exempt from paying taxes on their profits.
 Tax havens
This is the case for the treaties with Iran, Kuwait, Mauritius, The Netherlands and Seychelles.

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