Forget about DTAA, embrace tax incentives to bring investments
Kenya's President Uhuru Kenyatta and Mauritian Prime Minister Hon Pravind Kumar Jugnauth witness the signing of agreement between the two countries at the Receptorium of the National Assembly, Port Louis. PHOTO | PSCU
A recent court ruling declaring the Kenya-Mauritius Double Taxation Avoidance Agreement (DTAA) void has sent Kenya back to the negotiating table with Mauritius.
The court’s judgment is based on the fact that the DTAA was not properly ratified under Kenyan law. The government argued that the treaty promotes investment and jobs; however, critics such as the Tax Justice Network Africa (TJNA), which filed this suit, argued that DTAAs rarely lead to any benefits for developing countries.
