The Minister of Financial Services, Good Governance and Institutional Reforms, Mr Dharmendar Sesungkur, chaired yesterday at Sicom Tower in Ebène, a meeting on the signature of the OECD Multilateral Convention on Tax Treaty relating to BEPS (Base Erosion and Profit Shifting) Measures.
Several private sector global business operators participated in the discussions. The aim was to exchange information, chart the way forward and see how to better protect the interests of not only the local financial services sector but that of Mauritius also.
In a statement following the meeting, Minister Sesungkur recalled that the global business and the financial services sector represent a big chunk of Mauritius’ economic activity and contribute significantly by employing, directly or indirectly, around 20 000 professionals. The financial services sector contributes much in wealth creation and ensures the economic progress of Mauritius in terms of harnessing on investments, he said.
According to the Minister, there are a number of rules and regulations that are soon to enter into force on the international level and that includes the Multilateral Instrument being implemented by the OECD which will be impacting on our financial services sector as well as the EU’s BEPS. Hence, the importance of exchanging information with stakeholders of the financial services sector to address these challenges in the coming months so as to ensure the development of the sector, he pointed out.
Government, said the Minister, proposes to analyse the suggestions put forward by the private sector global business operators and see how Mauritius’ proposal to the OECD can be enhanced to better safeguard the country’s interest and that of the financial services sector.
On 7 June 2017, over 70 Ministers and other high-level representatives participated in the signature ceremony of the Multilateral Convention to Implement Tax Treaty Related Measures to Prevent Base Erosion and Profit Shifting. Signatories include jurisdictions from all continents and all levels of development.
Mauritius has expressed the intent to sign the Convention and other jurisdictions are also actively working towards signature.
The innovative multilateral convention provides for the swift implementation of a series of tax treaty measures to update the existing network of bilateral tax treaties and reduce opportunities for tax avoidance by multinational enterprises. It also offers the tools to implement mandatory binding arbitration, tackle hybrid mismatches, and stop artificial avoidance of “permanent establishment” status in countries. The convention is in line with the strategy to help restore citizens’ trust in the fairness and transparency of global governance systems and the legitimacy of the processes underpinning global integration.