Kenya has signed a multilateral convention to end tax avoidance in a conference in France.
The convention was ratified by 130 countries. Over 130 countries are implementing 15 Actions to tackle tax avoidance, improve the coherence of international tax rules and ensure a more transparent tax environment.
Domestic tax base erosion and profit shifting (BEPS) due to multinational enterprises exploiting gaps and mismatches between different countries’ tax systems affect all countries. Developing countries’ higher reliance on corporate income tax means they suffer from BEPS disproportionately.
Kenya’s ambassador to France, Judy Wahungu signed the convention, witnessed by officials from the National Treasury and Kenya Revenue Authority.
According to the OECD, BEPS practices cost countries $100-$240 billion in lost revenue annually, which is the equivalent to 4-10% of the global corporate income tax revenue.
