India-Mauritius DTAC- Mauritius Requests an Early Meeting for Discussions

Mauritius has requested the Indian authorities for an early meeting of the Joint Working Group on the India-Mauritius Double Taxation Avoidance Convention (DTAC), according to a press communiqué from the Ministry of Finance and Economic Development.

The communiqué points out that this will build on the discussions already started in December last year, and will give an opportunity for Mauritius to discuss its concerns regarding the uncertainties that have arisen following the measures announced by the Indian Government in its 2012 Budget speech.

For recall, at the December 2011 meeting of the Joint Working Group, Mauritius has been attentive to the concerns expressed by the Indian authorities arising from the operation of the DTAC. Mauritius has offered, as part of an all-inclusive package, to consider changes to the treaty that would address the Indian concerns, while ensuring that these do not affect the mutually beneficial effects of the treaty. Concrete proposals have been made to India. The communiqué holds that the Mauritian Government is optimistic that both sides can conclude a mutually acceptable package that would yield a win-win outcome for both parties.

It will be noted that the DTAC has helped Mauritius in the development of its Financial Services sector. India has on the other hand benefitted in terms of foreign direct investments, which for the last ten years stand at a cumulative figure of around USD 55 billion, and also in terms of job creation.

Mauritius Committed Towards Transparency

Mauritius continues to be recognised for its commitment towards transparency and exchange of information on the International front. The country also figures among the four countries that have been invited by the OECD Global Forum to make a presentation on its information exchange system to the competent authorities of more than a hundred countries, in the context of the Peer Review Group meeting which will be held in Madrid in May 2012.

In order to further consolidate its framework on exchange of information, Mauritius proposes to become a party to the Convention on Mutual Administrative Assistance in Tax Matters, which has been jointly developed by the OECD and the Council of Europe. This will further improve the effectiveness in the exchange of information mechanism and allow the country to provide assistance to its partners in the collection of foreign taxes.