A Tax Oxymoron: Double Taxation Agreements (DTAs) that enable tax evasion

Unfavourable DTAs, particularly those signed with tax havens, not only limit taxing rights but also expose countries to treaty provisions' abuse with unscrupulous investors who aggressively shift their profits and avoid paying taxes. To attract foreign investors, countries create an “enabling climate” that offers a wide range of incentives, including tax holidays. Consequently, countries engage in a race to the bottom as they use harmful tax incentives or sign questionable DTAs that limit their taxing rights on corporate income. TJNA's research in East Africa has found that countries lose between 2 and 6 percent of their GDP as a result of tax incentives.
Hon. Sakwa Bunyasi, Hon. Matthias Mpuuga and Mr. Mustapha Ndajiwo look at the impact of specific cases of DTAs signed with Mauritius by Kenya,
Senegal and Uganda.

#MPs4TaxJustice #Tunis #Tunisia #DTAs,