Mauritius says it is not a tax haven and is willing to address India’s concerns on the tax treaty between the two countries.
The India-Mauritius tax treaty has been a subject of debate for many years, with the Indian government pushing for a renegotiation of the treaty.
But Mauritius has consistently refused to do so. The treaty provides capital gains exemption to all Mauritius- based investors investing in India, and that has billions of dollars of Foreign Direct Investment (FDI) being invested into India through Mauritius.
Now, for the first time, Mauritius has defended the treaty.
M Meetarbhan, CEO, Financial Services Commission of Mauritius, told UTVi that Mauritius is not a tax haven and the country was ready to address India ‘s concerns on tax treaty.
He said Mauritius was willing to exchange information with the Indian government and there was no round tripping from Mauritius to India.
Indian authorities have not reported any case of round tripping, he said.
Round tripping refers to using the tax holiday advantage in Mauritius to take money out of India only to bring it back, disguised as foreign investment.
The money is routed through firms set up in tax havens.
The India-Mauritius tax treaty has been a subject of debate for many years, with the Indian government pushing for a renegotiation of the treaty.
But Mauritius has consistently refused to do so. The treaty provides capital gains exemption to all Mauritius- based investors investing in India, and that has billions of dollars of Foreign Direct Investment (FDI) being invested into India through Mauritius.
Now, for the first time, Mauritius has defended the treaty.
M Meetarbhan, CEO, Financial Services Commission of Mauritius, told UTVi that Mauritius is not a tax haven and the country was ready to address India ‘s concerns on tax treaty.
He said Mauritius was willing to exchange information with the Indian government and there was no round tripping from Mauritius to India.
Indian authorities have not reported any case of round tripping, he said.
Round tripping refers to using the tax holiday advantage in Mauritius to take money out of India only to bring it back, disguised as foreign investment.
The money is routed through firms set up in tax havens.
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