By Judith Gicobi
A commercial agreement between Kenya and United States, is contingent on the Kenya Revenue Authority (KRA) spying on American businesses and investors for money laundering and tax evasion.
The Biden administration wants Nairobi to uphold a 2014 deal that calls for Kenya to submit data on tax fraud connected to US companies or investors engaged in trade with the US.
During the presidency of Barack Obama, the tax agreement was signed in Washington on August 6, 2014.
The KRA will be required to compile and disclose data on goods shipment, bank records, and income declarations, as well as to permit its personnel to testify in US courtrooms.
Kenya is also anticipated to seize and forfeit goods related to American and foreign investors’ tax and money laundering violations.
According to sources at the KRA and the Treasury, Kenya has resisted enforcing the 2014 deal out of concern about offending major US firms and wealthy investors.
On January 20, 2017, Donald Trump took over for Obama, but he was reportedly sluggish to advocate for the deals that his predecessor had already signed.
The Biden administration is eager to reinstate some of the agreements that Trump has revoked.
Cummins, Dupre Investments, General Electric, Coca-Cola, IBM, Ormat Technologies, Alternate Systems, Mars, Mastercard, and Microsoft are just a few of the major American companies operating in Kenya.
Others include YouTube, Google, Amazon, Netflix, Everstrong Capital, and Uber.
The US government expects the KRA to notify it of businesses who underreport their tax obligations, particularly customs taxes.
Additionally, it ought to alert Washington of businesses whose conduct might endanger the security, economics, or other crucial interests of the United States.
Biden is eager to impose higher taxes on US citizens and businesses. He has considered introducing a minimum tax that would be levied on the wealthy.