Category: Mauritius

Mauritius: Joint Statement By The FSC & The FSPA

The Mauritius IFC: Driving Growth in Africa As a jurisdiction of substance, the Mauritius International Financial Centre (Mauritius IFC) has been instrumental in driving quality investments in Africa, leading to sustained growth and prosperity across the continent. It is therefore with deep regret that we take note of the misperceptions… – Continue reading

Oxfam: Luxembourg, Ireland, Netherlands among worst tax havens

The NGO’s report exposes the worst offenders in the ‘race to the bottom on corporate tax.’ Luxembourg, Ireland, Cyprus, and the Netherlands are among the world’s 10 worst tax havens, despite an ongoing EU crackdown on tax avoidance and profit shifting across the bloc. The findings come in a report… – Continue reading

France’s honest tax system crusader convicted for hiding millions of euros

Jérôme Cahuzac, appointed by Hollande to lead clampdown on wealthy avoiders, hid cash in a secret Swiss account for 20 years Jérôme Cahuzac, the minister who led François Hollande’s drive for a more honest tax system, has been sentenced to three years in prison for tax fraud and secretly stashing… – Continue reading

To Boost Trade, A Bilateral Tax Treaty Between India And The UK May Be In The Offing

Following British Prime Minister Theresa May’s visit to India last week, Patricia Hewitt, chair of the UK-India Business Council, said that Britain is looking to re-balance its commercial links with countries like India post-Brexit. She suggested that the two governments should look at a bilateral tax treaty to boost trade…. – Continue reading

FBR to file FIRs against owners of offshore companies

ISLAMABAD: The Federal Board of Revenue (FBR) is making preparation for registration of FIRs against those selected individuals who owned offshore companies and were named in Panama/Bahamas Leaks but failed to comply against the sent-out tax notices within the stipulated timeframe. The FBR found 114 cases whereby individuals were non-compliant… – Continue reading

Pakistan to seek offshore companies information from nine tax havens

Pakistan’s authorities are making efforts to seek information about tax details of 270 offshore companies from nine known tax havens around the globe where 444 individuals have invested billions of dollars, and, finally, their names appeared through PanamaLeaks, The News has learnt. The cases of 444 individuals involving nine jurisdictions… – Continue reading

Pakistan signs PTA with Mauritius

Governments of Pakistan and Mauritius on Friday signed a number of trade deals which included the Preferential Trade Agreement (PTA) – an agreement on avoidance of double taxation – which have a great potential for enhancing their bilateral trade. These agreements were signed during discussions held at the Mauritius Board… – Continue reading

Singapore wants to delay revision of tax treaty with India

Singapore is seeking more time to revise the two-decade old tax treaty with India, saying its investors need more time to shift to source-based taxation. India has, however, rejected any deferment in the revision of the treaty that will help prevent Singapore, which is the top source of FDI into… – Continue reading

Heat on tax evaders could be endgame for black money

Chances of tax evaders coming under the scanner is rising due to the implementation of the GST, greater use of technology and exchange of information between countries New Delhi: The noose is tightening around tax evaders. Be it the implementation of the goods and services tax (GST) or the greater… – Continue reading

Retain benefits for FPIs in Indo-Singapore tax treaty: ASIFMA

With India re-working taxation treaty with Singapore, an influential grouping of overseas investors has said capital gains tax exemption should be retained in the pact for FPIs in listed securities as that would “greatly ease” concerns of foreign investors. Seeking elimination of capital gains tax on portfolio investments in listed… – Continue reading

Mauritius seeks India’s help, post tax treaty revision

Mauritius, the island nation that accounts for the second-largest FDI, has sought a line of credit and more investments from India as it gets ready for implementation of the revised tax treaty from April 2017. Mauritian Minister of Finance and Economic Development Pravind Kumar Jugnauth yesterday met Finance Minister Arun Jaitley… – Continue reading

India, Mauritius to discuss revival of FTA, two-way investments today

Top officials from India and Mauritius will meet in Port Louis this week to discuss revival of free trade agreement (FTA) negotiations that were suspended three years ago by New Delhi. The talks were suspended to build pressure on Mauritius to expedite the double taxation avoidance agreement. Deliberations on two-way… – Continue reading

Foreign portfolio investors approach government to iron out Singapore Treaty, GAAR issues

MUMBAI: Foreign portfolio investors (FPIs) are lobbying the government to resolve problems related to the India-Singapore tax treaty and general anti-avoidance rules (GAAR), worried about their investment in equities. FPIs fear after April 1, 2017, when both the renegotiated India-Singapore treaty and GAAR come into force, they will face challenges…. – Continue reading

Cabinet approves signing of revised DTAA with Cyprus

The Union Cabinet on Wednesday gave its nod for signing of revised double taxation avoidance agreement (DTAA) with Cyprus, a popular tax haven. It is also learnt to have approved the removal of island nation as a non-cooperative jurisdiction for income-tax purpose. Cyprus was the only country to have been… – Continue reading

India notifies capital gains exemption norms for Mauritius investors

Private equity (PE) investors and venture capital (VC) funds from Mauritius will have to pay capital gains tax on investments into quasi-equity in India, under the revised tax treaty, unless the conversion of investments into equity is not finalised before 1 April 2017. The government has notified the revised double… – Continue reading

Mauritius, South Korea Sign New Tax Deal

The Mauritian Government has announced that, on August 11, a tax information exchange agreement (TIEA) was signed between Mauritius and South Korea for the mutual sharing of tax information. The TIEA provide for cooperation in tax matters between the two jurisdictions. The agreement, once ratified, will allow each country to… – Continue reading

India Ratifies Mauritius Double Tax Protocol

Through Notification No. 68/2016, the Government of India has ratified a Protocol to its tax treaty with Mauritius. The protocol was signed on May 10, 2016, in Mauritius, in a bid to limit abuse of the India-Mauritius double tax avoidance agreement. The protocol provides India with the right to tax… – Continue reading

Mauritius to revive negotiations for CECPA with India

Mauritius is looking to revive efforts to put in place a comprehensive economic cooperation pact with India, close on the heels of sorting out long-pending issues related to the bilateral tax treaty. The island nation, a major source of foreign direct investments coming into India, is also eyeing a preferential… – Continue reading

Changes to India-Mauritius-Singapore Tax Treaties – Mind the Gap?

As many are now aware, the double tax avoidance arrangement (DTAA) between India and Mauritius was amended through the protocol released last month. The direct impact summarized in one line is as follows: India shall now tax capital gains arising from alienation of shares by a Mauritius investor acquired on… – Continue reading

Nine measures taken by government to curb black money

The government is hell-bent on cracking down on black money and undisclosed income of Indians within the country and safely stowed away abroad. While there is no proper estimation of the actual amount of black money in the economy, the government is actively taking measures to stop it. Recent media… – Continue reading

Tax avoidance: how it works and how to stop it

The Panama Papers have put the spotlight on tax avoidance once again. This is, of course, not a new issue. Before that, we had Swiss Leaks and BVI Leaks. You may be asking: how does tax avoidance work and why have policymakers struggled to rein it in? Firstly, it is… – Continue reading

India Revamps Its Treaty Provisions With Mauritius

The Government seeks to curb revenue loss, prevent double non-taxation, streamline the flow of investment, and stimulate the flow of exchange of information between India and Mauritius The India – Mauritius double taxation treaty was under negotiation for the last 4 years. The Treaty has now been amended by way… – Continue reading

GAAR not to apply on income from investments before April 1

The industry has been demanding that GAAR provisions should apply prospectively To clear the air on retrospective applicability of the stringent anti-avoidance GAAR rule, the I-T department has said the same will not apply to income from transfer of investments before April 1, 2017. General Anti-Avoidance Rule (GAAR), which will… – Continue reading

Tax conundrum for Indian-focused offshore private equity funds

Foreign private equity investors typically set up offshore pooling vehicles for routing investments into India, which offer them twin advantages of ease of administration and single window compliance with the Indian regulatory regime. Setting up such pooling vehicles in a tax favourable jurisdiction ensures that the interposition of the pooling… – Continue reading

Govt approves double taxation avoidance agreement with Belgium

To check abuse of double taxation, India signs agreement with Belgium. The decision regarding this was taken in a meeting chaired by Narendra Modi. The Cabinet on Wednesday approved the signing of a protocol amending an agreement between India and Belgium for avoidance of double taxation and prevention of fiscal… – Continue reading

Working group to examine issues on Mauritius DTAA

NEW DELHI: The government has constituted a working group to examine the “consequential issues” arising out of the changes in India’s tax treaty with Mauritius.The India-Mauritius Double Taxation Avoidance Convention was amended last month to introduce a levy to prevent investors from using the island nation as a shelter to… – Continue reading

Mauritius pact: A laudable reform

Last month the government announced an amendment to the Double Tax Avoidance Agreement between India and Mauritius. The DTAA was signed between the two countries in August 1982 and notified in December 1983. For the past thirty-three years it has been a key factor affecting foreign investment flows into India…. – Continue reading

Report: Multinational Tax Avoidance Cost Australia $5bn in One Year

Sydney-A new report by Oxfam said Australia’s federal government lost an estimated 5 billion US dollars in revenue in 2014 as a consequence of tax avoidance by multinational corporations with Australian operations. The non-governmental organization said in its report that investments from Australian-based big companies in tax havens globally grew… – Continue reading

Cyprus agrees to amend tax treaty ahead of GAAR with caveat

Ahead of India’s rolling out of anti-tax avoidance regulations, Cyprus has shown eagerness to amend the bilateral tax treaty allowing New Delhi to tax capital gains. In turn, has pitched to be taken off the blacklist or being considered a “notified jurisdiction” for not sharing tax information, which implies increased… – Continue reading

India-Mauritius tax treaty: An end and a new beginning

Recent news of India and Mauritius signing a Protocol to amend their 33 year old tax treaty caused seismic changes in the tax world. Though not completely unanticipated, the change is significant for foreign investors to go back to the drawing board and reassess their structures. The tax treaty between… – Continue reading

Cyprus says ‘very close’ to revising tax treaty with India

In a step forward, Cyprus has said it is “very close” to revising the bilateral tax treaty with India as the island nation has accepted “in principle” proposals made by the Indian side on taxing capital gains. Cyprus, a source of significant foreign fund flows into the country, said rising… – Continue reading

After Mauritius, now government wants to amend Dutch tax treaty; asks Netherlands to resume talks

India has asked the Netherlands to resume negotiations on amending their bilateral tax treaty as the government extends its efforts to plug loopholes in such accords to curb misuse. The Dutch tax treaty , which allows exemption from capital gains and a lower rate of tax on dividends, has led… – Continue reading

US Foreign portfolio investors ask India to amend capital gains tax treaty

Foreign portfolio investors based out of the US have collectively approached the India with a request to amend the India-US tax treaty, exempting them from paying capital gains tax , people close to the development said. These investors — mainly pension funds —are those who had invested in Indian equities… – Continue reading

Will new tax treaty with Mauritius turn India into a fund management hub?

The new tax treaty between India and Mauritius may achieve what last year’s budget tried to do, albeit unsuccessfully—encourage offshore fund managers to relocate to India, in the process making the country a fund management hub, much like London, Dubai or Singapore. With the new agreement restoring parity between domestic… – Continue reading

Expert group to guide FIIs on capital gains tax, GAAR rules

The finance ministry expert panel is expected to pre-empt any potential confusion, assuage foreign investors facing twin changes in the tax regime New Delhi: The finance ministry is setting up an expert group to work out the modalities of implementing changes in the tax regime stemming from the withdrawal of… – Continue reading

‘New tax treaty has plugged the loophole of double non-taxation’

Tax Treaty between India and Mauritius for avoidance of double taxation had become a double non-taxation treaty. Under this treaty, India could not tax the gains from sale of shares in Indian companies by a Mauritius resident, who is also not subject to any tax in Mauritius as such gains… – Continue reading

India, Slovenia ink double-tax avoidance treaty amendments

In its fight against black money stashed abroad, India has signed a protocol with European Union member nation Slovenia to make changes to the Double Taxation Avoidance Convention between the two countries, an official statement said in New Delhi on Thursday. The protocol, for avoidance of double taxation and preventing… – Continue reading

SEBI tightens rules on offshore derivatives

MUMBAI India’s capital market regulator on Thursday took steps to stop suspected illegal money flowing into the country by making issuers of securities known as offshore derivative instruments register their customers. The Securities and Exchange Board of India (SEBI) also tightened rules for transferring ownership of these offshore instruments to… – Continue reading

India gearing up to apply Mauritius tax treaty fix to double taxation avoidance accord with Cyprus

NEW DELHI: Now that loopholes in the tax treaty with Mauritius have been plugged, the Indian government is gearing up to apply the same fix to its accord with Cyprus. Talks to amend the double taxation avoidance treaty are at an advanced stage and the two sides will soon exchange… – Continue reading

UAE investment in India may bypass Mauritius

The closure of a tax loophole could hit UAE firms planning to invest in India through Mauritius. The Indian government this week amended a long-standing treaty that helped foreign investors to avoid capital gains tax by routing their investments through Mauritius. Mauritius is the biggest source of foreign direct investment… – Continue reading

India-Mauritius Tax Treaty Renegotiated

On 10 May 2016, the Government of India issued a press release1 stating that India and Mauritius have signed a protocol (New Protocol) amending the double tax avoidance treaty between the two countries (the Treaty). Based on the press release and the New Protocol, following are the key changes to… – Continue reading

India to renegotiate tax treaty with singapore

After renegotiating the tax treaty with Mauritius to get the right to tax capital gains, India will go in for a similar amendment with Singapore, the second closest destination through which foreign funds are routed to India. “Sooner or later, the process will commence and hopefully conclude,” Finance Minister Aruna… – Continue reading

Investors making money must pay taxes, no fear of FDI fall: Arun Jaitley

India had in August 1982 signed the treaty with Mauritius to eliminate double taxation of income and capital gains to encourage mutual trade and investment. Investors must pay taxes on money they earn in India and the domestic economy is now strong enough to depend on any “tax-incentivised route” to… – Continue reading

GAAR to override bilateral tax treaty provisions: Official

New Delhi, May 11 (IANS) Following the revision of India’s bilateral tax treaty with Mauritius, the government on Wednesday said the General Anti-Avoidance Rule (GAAR ) provisions, with effect from April next year, will override the Double TaxationAvoidance Agreement (DTAA) in case of abuse. “GAAR being anti-abuse provision can prevail… – Continue reading

Who gains, who loses in new tax pact with Mauritius? Will FIIs run away?

India and Mauritius have signed a protocol amending the double tax avoidance arrangement between the two countries. The protocol is the outcome of an extensive and long-drawn-out negotiation process that has been going for more than a year and a half. While the text of the protocol is yet to… – Continue reading

Mauritius Issues Draft CRS Implementation Guidance

As promised earlier this year, the Mauritius Revenue Authority (MRA) has published Guidance Notes for the implementation of the OECD’s Common Reporting Standard (CRS). The CRS, the new global standard for automatic exchange of information for tax purposes, obliges all participating countries and jurisdictions to obtain financial information from their… – Continue reading

The problem of secretive tax havens

Panama is a tax haven, but Mauritius is one with which India has a comprehensive double tax treaty. This complicates matters more. In popular Indian imagination, a tax haven is generally associated with Switzerland and its numbered bank accounts. But tax havens are numerous, have grown in importance, and are… – Continue reading

GAAR still remains an irritant for FIIs, doubts persist over FII structure

MUMBAI: Anxiety still prevails among foreign institutional investors (FIIs) with regard to General Anti Avoidance Rule (GAAR), which will come into effect from April 1, 2017. While the draft rules in GAAR may have cleared the air over retrospective taxation and treatment of Participatory Notes ( P-notes), experts say doubts… – Continue reading

Monitor offshore investments, IMF tells Mauritius

The International Monetary Fund (IMF) has askedMauritius to set up a ‘macro-prudential authority’ to monitor the offshore investments from the island. One of the largest destinations of such offshore investments is the Indian stock market. The proposed authority will have a central role for the banking regulator, the Bank of… – Continue reading