The convention allows international collaboration initiatives to end tax avoidance among multinational firms under the OECD/G20 BEPS Project. PHOTO |COURTESY
Kenya has signed a multilateral convention to end tax avoidance among multinational firms as part of the ongoing national efforts to strengthen the country’s bilateral tax treaties.
Judi Wakhungu, Kenya’s ambassador to France said she signed the Multilateral Convention to Implement Tax Treaty Related Measures to Prevent Base Erosion and Profit Shifting Convention at the ongoing 10th Anniversary Meeting of the Global Forum on Transparency and Exchange of Information for Tax Purposes in Paris.
Wakhungu said Kenya’s signing of the convention demonstrates the national commitment to putting in place measures to prevent Base Erosion and Profit Shifting (BEPS).
“Kenya remains committed to the work of the Inclusive Framework and reaffirms her commitment to implementing the BEPS minimum standards,” said Wahungu.
She confirmed that Kenya would also be swiftly moving to deposit the country’s instrument of ratification for the convention in the coming months.
The convention, is the first multilateral treaty of its kind, allowing international collaboration initiatives to end tax avoidance among multinational firms under the OECD/G20 BEPS Project.
Under the OECD/G20 Inclusive Framework on BEPS, over 130 countries are collaborating to put an end to tax avoidance strategies that exploit gaps and mismatches in tax rules to avoid paying tax.
By signing the international tax treaty, Kenya now becomes the 91st jurisdiction to join the convention which covers over 1,600 bilateral tax treaties and seeks to put an end to tax avoidance strategies that exploit gaps and mismatches in tax rules to avoid paying tax.
Kenya Revenue Authority Commissioner-General Githii Mburu said the signing of the convention would put a stop to treaty shopping tendencies which have been a major concern for many countries as it promotes double non-taxation.