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A prophet is never appreciated in his hometown, so goes the popular saying. In Kenya, president Uhuru Kenyatta continues to receive criticism when it comes to transparency. This has been more so since the infamous December 28th 2018 incident in State House when the president promised ntv journalist Mark Maasai to make public the Standard Gauge Railway contract during a live interview. He later reneged on the promise, and this remains a stark stain on his transparency record. The Pandora Papers exposé just made it worse.. However, a huge group of transparency organisations has launched a scathing attack on their president, Joe Biden, and European tax havens, specifically Ireland. Nevertheless, it heaped praise on Uhuru’s stand, following the categorical response he gave to his host Biden during his American trip recently.
Civil society groups hit out at US President Joe Biden administration’s push for a global minimum rate of tax on multinational companies saying the deal as currently structured will not ensure equity in taxation of multinational firms – a position that echoed President Uhuru Kenyatta’s administration.
The Tax Justice Network, a group campaigning for transparency criticized the Paris-based Organisation for Economic Cooperation and Development (OECD), for failing to live up to the “original ambition” of the plan, and said that the watered down measures mean that only a “sliver of the profits” of multinationals will become taxable, while incentives to shift profits remain sizable.
“It’s no wonder that Ireland and other havens have embraced the deal, especially after obtaining various concessions,” said chief executive Alex Coham in a statement.
“As it stands, it will neither curb profit shifting effectively, nor provide substantial revenues to more than a handful of OECD member countries. Everyone else has been left out.”
Kenya withheld backing for the Biden administration’s push for a global minimum rate of tax on multinational companies arguing the deal will stop Nairobi from collecting taxes from tech giants such as Google, Facebook and Amazon.
OECD, which hosted the talks on the overhaul of taxation rules, revealed early this month that Kenya was missing from the list of 136 countries that have backed the agreement.
The Kenya Revenue Authority (KRA) confirmed that Kenya was uncomfortable with clauses in the agreement that will force it to drop the digital services tax of 1.5 percent of sales.
For current information about Kenya news curfew, Real estate, credit and other companies offering loans to individuals and small businesses , healthcare and treatment information, always browse Kenyan report.
KRAOrganisation for Economic Cooperation and Development (OECD)President Joe BidenPresident Uhuru Kenyatta
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