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{
    "id": 1037989,
    "url": "https://info.mzalendo.com/api/v0.1/hansard/entries/1037989/?format=api",
    "text_counter": 391,
    "type": "speech",
    "speaker_name": "Homa Bay CWR, ODM",
    "speaker_title": "Hon. (Ms.) Gladys Wanga",
    "speaker": {
        "id": 590,
        "legal_name": "Gladys Atieno Nyasuna",
        "slug": "gladys-atieno-nyasuna"
    },
    "content": " Hon. Speaker, I beg to move: THAT, this House adopts the Report of the Departmental Committee on Finance and National Planning on its consideration of the Agreement for the Avoidance of Double Taxation between the Government of the Republic of Kenya and the Government of the Republic of Mauritius, laid on the Table of the House on Tuesday, 1st December 2020 and pursuant to the provisions of section 8 (4) of the Treaty Making and Ratification Act, 2012 approves the Agreement for the Avoidance of Double Taxation between the Government of the Republic of Kenya and the Government of the Republic of Mauritius. Hon. Speaker, just for the record, in the exercise of the powers conferred by Section 41 of the Income Tax Act, the Cabinet Secretary (CS) for National Treasury and Planning published a notice specifying the Agreement for the avoidance of double taxation between the Government of the Republic of Kenya and the Government of the Republic of Mauritius via Legal Notice No.114 on 30th June of 2020. The Notice was submitted to the Clerk of the National Assembly on 7th July 2020 and tabled before the House on 15th July 2020 and subsequently referred that Notice to us. Hon. Speaker, currently, there is no agreement on avoidance of double on taxation between Kenya and Mauritius. This is done because there is a need to have a legal framework for the administration on avoidance of double on taxation with regard to Kenyan citizens living, doing business and working in Mauritius and Mauritian citizens living and doing business in Kenya. The Government of Kenya has several double taxation agreements with countries such as Canada, Denmark, France, Germany, India, Korea, Qatar, among others. There are several others that are under consideration. Some are also signed, but not in force such as the one, we have signed with the East African Community. Hon. Speaker, more often than not, these agreements have not found their way to Parliament. In fact, this particular Agreement only found its way to Parliament, after the Tax Justice Network went to court and made their plea in court that the National Assembly had not considered this Agreement. That is when the court ruled that the Agreement should come and that is when it was brought. When it is brought - and one of the issues we are raising- it is brought under the Statutory Instruments Act. Therefore, even when we held public participation and listened to various stakeholders, we were not able to make any changes. This was because the Agreement is signed, by the time it is coming to the House. Therefore, this is one of the recommendations we will be making- so that our engagement is not in vain because when we engage and we listen - and we are talking about various taxes and taxation rates - the House should be able to make an input rather than just either agree with or annul as per the Statutory Instruments Act. Therefore, one of the things that we are saying is, we should amend the law so that these agreements come under the Treaty Making and Ratification Act. This is so that they are dealt, looked at and can be reviewed by Parliament, rather than just looking at the agreement and either agreeing with it or not agreeing with it. Hon. Speaker, therefore, we were really in a catch 22 situation because if there were any issues that were raised, for example, by the stakeholders in public participation, we told them that. While on some of them, we might agree with you, but at the end of the day, we have to weigh whether it is worth annulling the Agreement in totality or we hear you, but there is no change we can make. Therefore, one of the recommendations moving forward is these double taxation agreements- as they continue to come to the House- should be under the Treaty Making and The electronic version of the Official Hansard Report is for information purposesonly. A certified version of this Report can be obtained from the Hansard Editor."
}