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{
    "id": 969213,
    "url": "https://info.mzalendo.com/api/v0.1/hansard/entries/969213/?format=api",
    "text_counter": 289,
    "type": "speech",
    "speaker_name": "Limuru, JP",
    "speaker_title": "Hon. Peter Mwathi",
    "speaker": {
        "id": 104,
        "legal_name": "Peter Mungai Mwathi",
        "slug": "peter-mwathi"
    },
    "content": "they will require from us. Secondly, there is combating tax evasion and tax avoidance and support in tax recovery. So, the Convention provides for exchange of information in order to combat tax evasion and tax avoidance. There are people who are known to avoid tax and hide that information in other countries or jurisdictions which they think are safe havens. Once we ratify this Convention, we shall be able to reach out to those countries and know the kind of taxes we should get from those who have been avoiding or evading tax. The third benefit is to acquire information not disclosed by taxpayers for quality and accurate cross-border audit investigations. There are people who sometimes give information not in full. Sometimes they decide to hide some information which would otherwise be important for our collection of tax. The fourth benefit is timely access of information without having to enter into bilateral agreements. On this one, the Convention will allow sharing of information without having to enter into bilateral agreements that usually take a lot of time to negotiate and conclude. So, once you have entered into this Convention, you can get the information by way of a request or automatic exchange of the same information via the system that you have agreed on. At the same time, as we ratify, Kenya or any other country can deposit their reservation on which taxes they would not want to share information on. As at now, Kenya has not put any reservations. The fifth benefit is enhanced fight against corruption, illicit financial flows including money laundering and terrorist financing. In addition to providing valuable tool for fighting tax evasion and avoidance, the Convention will help us to access information from other enforcement agencies to fight corruption, illicit financial flows including money laundering and terrorist financing. Hon. Speaker, we are aware that over the time we have spoken about corruption in this country, each one of us is obligated to fight corruption. In furtherance of that national undertaking, this Convention is going to help us achieve the same. On national interest, it is important to reiterate the point that has been raised by my Chair that the ratification of this Convention shall not affect the national interest of Kenya. The Convention is only concerned with exchange of information for tax purposes only with the other parties to the Convention. As I conclude, I want the Members to know that there are other implications that they maybe querying. Do we have financial implications once we ratify this one? Yes, but very minimal. We have a fee of Euros1,200 paid annually by each one of State parties. Two, if there are any costs that will accumulate as one looks for information to share, then that cause is borne by requested party. However, if there are any other extra costs that may come with the request, then the requesting party will pay. Finally on the legal implication, the Convention, once signed, will enter into effect three months after it has been deposited with the depositories. With those many remarks, I wish to second the Report. Thank you."
}