Tax
Mauritius Stresses Tax Co-Operation With India - Report
The foreign minister of Mauritius has tried to play down the African island's reputation as an offshore tax haven when speaking to Indian television.
According to New Delhi Television's website, the foreign minister Arvin Boolell said his country has exchanged information related to more than 170 cases with India over the past three years. Boolell told reporters that some of the information exchanged was even outside the Double Taxation Avoidance Agreement the two countries signed in 2006.
The TV network explained that the tax treaty means that capital gains from investment in India from Mauritius can only be taxed in the island nation. However, as Mauritius does not tax capital gains, a large amount of foreign investment in India is believed to be routed through Mauritius to escape tax, which has prompted the government to impose General Anti-Avoidance Rules to crack down on abuse of the tax treaty.
"Mauritius has done everything to curb round-tripping," Boolell was quoted as having said, adding that Mauritius is not a tax haven.
India has allegedly received an assurance from Mauritius that it is prepared to re-consider various aspects of tax treaties such as the DTAA.