Mauritius requests an early meeting of the Indo-Mauritius DTAC

Mauritius has requested from the Indian authorities an early meeting of the Joint Working Group on the India-Mauritius Double Taxation Avoidance Convention (DTAC). This will build on the discussions already started in December last, and 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 listened attentively 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. We are optimistic that both sides can conclude a mutually acceptable package that would yield a win-win outcome for both parties.

It is important to note 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 USD55 Billion, and also in terms of job creation.

On a different note, it is worth highlighting that Mauritius continues to be recognized for its commitment towards transparency and exchange of information on the International front. It is interesting to note that Mauritius is 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 next month.

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 of our exchange of information mechanism and allow us to provide assistance to our partners in the collection of foreign taxes.