Taxman nets billions after audit of firms Geoffrey Irungu
Publication details: Nairobi Nation Media Group Ltd 2013Description: p. 1 Business Daily, September 13, 2013Subject(s): Summary: - More than 10 multinational companies had used the transfer pricing mechanism to declare losses that effectively disqualified them from paying income tax. - Most of the suspect transactions involved local companies and their subsidiaries located in tax havens that do not charge income tax or whose tax rates are much lower than Kenya’s 30 per cent. - KRA said it had busted the tax evasion syndicate by comparing what the tax haven-based associates of local firms had charged with the prevailing market prices of the goods and services. - The culprits are expected to agree with KRA on a payment schedule that will enable them to clear the tax.
- More than 10 multinational companies had used the transfer pricing mechanism to declare losses that effectively disqualified them from paying income tax.
- Most of the suspect transactions involved local companies and their subsidiaries located in tax havens that do not charge income tax or whose tax rates are much lower than Kenya’s 30 per cent.
- KRA said it had busted the tax evasion syndicate by comparing what the tax haven-based associates of local firms had charged with the prevailing market prices of the goods and services.
- The culprits are expected to agree with KRA on a payment schedule that will enable them to clear the tax.
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