Inside Treasury’s plan to net tax-dodging multinational companies - News Summed Up

Inside Treasury’s plan to net tax-dodging multinational companies


It was a five-year legal battle pitting Google Kenya, a local branch of internet giant Google, against the Kenya Revenue Authority (KRA). But KRA had insisted that the marketing services that Google Kenya offered its two affiliates were not exports as Kenyans consumed the adverts and read translations. Take a surveyBut Google Kenya management might as well put the champagne on ice. They achieve this by moving profits from a jurisdiction with higher corporate income tax (CIT) to one with lower CIT, such as Mauritius, Cayman Island, Ireland and other tax havens. Thus, such a non-resident entity will be deducted income tax on its trading profit.


Source: Standard Digital May 24, 2021 21:00 UTC



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