Mauritians with stacks of cash in Kenya, and Kenyans having their cash in Mauritius are warned: Kenya’s National Treasury has disclosed that it is on the verge of inking an agreement with tax organisations in 100 countries that will make it easy for all countries involved to share and report financial information.
Mauritius is said to be one of the territories that have already signed the agreement.
The regulations which will be effective on January 1, 2022, will compel banks, trusts and other financial institutions to report information about foreigners holding accounts and assets to tax authorities from their home countries.
This means that Kenya Revenue Authority will be able to access accounts of Kenyans who have money in Mauritius and also submit information about foreigners with wealth in Kenya.
The new regulations will also require financial institutions to probe all existing accounts with balances of Sh28.22 million (Rs10million) and above, starting June 30, 2022.
The international agreements signed between KRA and other tax authorities have seen the tax man clamp down on businessesmen whose information has been kept secret for years.
Original article at Pulse Live Kenya