Kenya Revenue Authority. [Photo/softkenya.com]
The lack of clarity and too many loopholes in a country's tax legislation is what companies dream of when they make investments.
This is because that situation enabled the said companies to easily evade tax.
Sadly enough, that is how a panel in the Third Annual Tax Summit described Kenya's taxation policy.
KRA Chief Manager in the international tax office George Obell shared similar sentiments saying that it had become increasingly complicated to fight tax evasion because the Kenya Revenue Authority was legally obligated to provide hard evidence that the firms had intentions of avoiding paying tax due.
''There are so many loopholes that multinationals exploit to avoid paying taxes,'' Obell said.
The sentiments demonstrate the need to review the legal framework with a view to sealing the myriad loopholes that currently exist.