Mauritius and Australia Sign Tax Information Exchange Agreement

A Tax Information Exchange Agreement (TIEA) and an Additional Benefits Agreement (ABA) between Mauritius and Australia were signed this morning in Port Louis by the Vice-Prime Minister, Minister of Finance and Economic Development, Mr Pravind Jugnauth, and the High Commissioner of Australia in Mauritius, Mrs Catherine Johnstone.

Mauritius has become the 27^th TIEA partner of Australia with the signing of the agreement which will further strengthen the commitment of both countries to improve the integrity of the international tax system. The TIEA will reinforce Australia's longstanding action towards the implementation of tax information exchange standards developed by the Organisation for Economic Cooperation and Development (OECD) and the Global Forum on Transparency and Exchange of Information for Tax Purposes which is currently chaired by Australia. Under the agreements the Australian Taxation Office will also provide technical assistance and training to the Mauritius Revenue Authority.

Speaking on this occasion, the Vice-Prime Minister, Minister of Finance and Economic Development, stressed that Mauritius is looking forward to a full-fledged Double Taxation Avoidance Agreement (DTAA) with Australia and that the signing of the Additional Benefits Agreement and the TIEA is the first step towards the conclusion a complete DTAA and an Investment Promotion and Protection Agreement (IPPA) with Australia.

The High Commissioner of Australia, for her part, qualified the agreement as a significant achievement that demonstrates the commitment of both countries towards improving the integrity of the international tax system and added that the agreement will further enhance the relationship between the two countries.

It will be recalled that Mauritius has always been active as regards information exchange and transparency and has participated in the various initiatives of the OECD in this domain. The country is among the first six non-OECD countries that form part of the Global Forum Working Group set up to draft the Model Agreement on Exchange of Information on Tax Matters.

Mauritius has so far signed thirty six Double Taxation Avoidance Agreements which contain a section on exchange of information and is in the process of negotiating other Double Taxation Agreements with several countries which will contain a section on effective exchange of information compliant with the requirements of the OECD. The country is also committed to developing a Tax Information Exchange Agreement with countries where there is no Double Taxation Agreement.