October 29, 2015
INVITATION TO PRESS CONFERENCE ON LEGAL CHALLENGE TO KENYA/MAURITIUS DOUBLE TAX AGREEMENT AT SAROVA PANAFRIC HOTEL
You are cordially invited to a press conference/breakfast meetingon Monday, November 2nd, 2015 at Sarova Panafric Hotel at 10:00am in Nairobi.
Tax Justice Network-Africa (TJN-A) in October 2014 sued the Government of Kenya (specifically the Cabinet Secretary to the Treasury, Kenya Revenue Authority and the Attorney-General) in a Nairobi High Court challenging the constitutionality of the Kenya/Mauritius Double Taxation Avoidance Agreement signed in Port Louis, Mauritius on May 11, 2012 and as contained in Legal Notice 59 published in the Kenya Gazette of May 23, 2014.
The Agreement will significantly undermine Kenya’s ability to raise domestic revenue to undergird the country’s development as it opens more loopholes for companies operating in the country and super rich individuals to shift profits abroad through Mauritius to avoid appropriate taxes. For example provisions under Article 11 of the Agreement relating to interest limits Kenya’s withholding tax to 10 per cent whereas Kenyan domestic rate currently stands at 15 per cent. This will significantly affect the tax base of the Kenya Revenue Authority (KRA).
The Agreement also sharply contravenes Articles 10 and 201 of the Constitution and is inconsistent with the principles of good governance, sustainability and accountability. The Agreement is open to abuse which could endanger the growth and development of the country. Counsel for TJN-A is Gitobu Imanyara & Co. Advocates.
This specific press briefing will address the hearing of the case on November 2nd. The briefing will also explain the collapse of Imperial and Dubai banks, the ongoing financial crunch and the possibility of these crises worsening because of two new damaging Double Tax Agreements Kenya has signed with the United Arab Emirates and Qatar, two countries which have positioned themselves as tax havens that could allow multinational companies operating in
Kenya to avoid paying their fair share of taxes to Kenya.
Thank your cooperation and we look forward to welcoming you.
For further enquiries kindly email: email@example.com and firstname.lastname@example.org or call 0726 80 44 00/0724 99 47 96.