Tax-Dodging Multinationals Aided by Kenya, Tanzania - Report

Kenya and Tanzania are among the world's 70 countries notorious in helping multinational corporations underpay corporate income tax, leading to lower revenue collections and persistent budget deficit, according to the latest Corporate Tax Haven Index (CTHI 2021) by Tax Justice Network Africa (TJNA), a Pan-African research and advocacy organisation. The findings show that Kenya is responsible for 0,1% of the world's corporate tax abuse with CTHI of 0,14%, haven score of 50% and Global Scale weight of 0,013%.Tanzania is also responsible for 0,1% of the World's corporate tax abuse.

An estimated 60% of international trade happens within multinational entities. According to the UN Conference on Trade and Development, illicit financial flows cross border exchanges of value, monetary or otherwise, which are illegally earned, transferred or used. This costs African countries around U.S.$50 billion per year, dwarfing the amount of official development assistance the continent receives annually. In Kenya, it is estimated that the country has been losing an average of U.S.$366,97 million every year since 2011 through illicit financial flows as government, local firms and multinationals engage in deceitful schemes to avoid paying taxes.

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