Mauritius actively sharing tax information with India: FSC
Financial Services Commission (FSC) Chairperson Marc Hein stated that Mauritian authorities has been fully co-operative with their Indian counterparts to furnish information. (Image: Aamil)
Even as tax issues with India are hanging over Mauritius’ head like a sword, the island economy insists that its regulatory authorities and financial intelligence units are actively cooperating with their Indian counterparts for sharing of information.
Financial Services Commission (FSC) Chairperson Marc Hein stated that Mauritian authorities has been fully co-operative with their Indian counterparts to furnish information whenever ‘reasonable information’ has been requested to the Mauritian authorities.
FSC is Mauritius’ integrated regulator for global business companies and non-banking financial services sector.
Various reports in the Indian press are indicating that Singapore may be emerging as the new ‘Mauritius’ for India, with widespread talks of global businesses increasingly routing foreign direct investments to India through the Asia-Pacific Island instead of via the Indian Ocean economy.
Accordingly, Mauritius is hopeful of stemming the flow by signing a new TIEA (Tax Information and Exchange Agreement) with India soon.
The agreement is expected to help the two countries exchange tax-related information on entities doing business in both nations, in line with India’s long-standing demand.
Hein, who was in India to participate in an international taxation conference, also stated that the Tax Information and Exchange Agreement between India and Mauritius has been finalised by both countries and Mauritius is in fact already applying it.
The FSC hopes that the agreement would be signed by both parties whenever both governments are ready for this, added Hein.
Hein noted that the FSC and SEBI have been exchanging information for years,adding that apart from regulatory authorities the Mauritian Financial Intelligence Unit also cooperates with the Indian FIU for exchange of information.
A DTAA is already in place since 1982 between two countries but is being revised amid Indian concerns that Mauritius was being used by global businesses for evading taxes.
While,the island economy has always maintained that there is no proof of such misuse, till tax issues are resolved in entirety it looks like taxing times for Mauritius will continue for some time.
Meanwhile, a limitation of benefit (LOB) clause is being added to the double tax avoidance agreement (DTAA) by Mauritius as the latest placatory move by the island economy.This amendment seeks to prevent any abuse of the tax treaty’s beneficial provisions by limiting treaty benefits to those companiesthat meet certain conditions including those related to business, residency and investment commitments.
Source: Press Trust of India