30 October 2015

Pillsbury World Aircraft Repossession Index

Covering 57 popular jurisdictions worldwide in which aircraft are registered and operate, the Pillsbury World Aircraft Repossession Index summarizes in graphical form expert analysis provided by reputable local counsel and numerically scores the legal environment for repossessing aircraft in each participating jurisdiction. Each jurisdiction is scored on the basis of seven differently weighted criteria: repossession, insolvency, deregistration, export, enforceability of judgments, preferential liens and political stability.

Jurisdictions covered: Aruba, Australia, Austria, Azerbaijan, Belgium, Bermuda, Brazil, Bulgaria, Canada, Cayman Islands, Chile, Costa Rica, Denmark, Dominican Republic, Egypt, El Salvador, Fiji, France, French Polynesia, Germany, Guatemala, Hungary, India, Indonesia, Ireland, Israel, Italy, Jordan, Kazakhstan, Kenya, Korea, Latvia, Lebanon, Lithuania, Malaysia, Mauritius, Mexico, Mozambique, Netherlands, New Caledonia, New Zealand, Nigeria, Norway, Oman, Pakistan, Peru, Poland, Portugal, Romania, Russia, Slovenia, Sri Lanka, Turkey, Ukraine, United Arab Emirates, the United Kingdom, and the United States.

IFC Economic Report - Compliant, Transparent and Ready for Business

This special stand-alone edition of the IFC Economic Report provides the world’s wealth structuring practitioners with a unique perspective on the ongoing developments within IFCs. As well as highlighting the world class regulation to be found there, this influential report offers comprehensive and sophisticated analysis on structuring through them.

29 October 2015

Open Data Readiness: Mauritius well positioned to start implementing

Mauritius is well placed to implement an open data initiative and demonstrates strong top-level commitments to transparency and to innovation, reveals an Open Data Readiness Assessment (ODRA) conducted by the World Bank in June this year in the context of the Open Data programme for the country.

An Open Data Readiness validation workshop was held yesterday afternoon at the Rajiv Gandhi Science Centre, in Bell Village, during which the ODRA findings were presented to stakeholders.  Organised by the Ministry of Technology, Communication and Innovation (MTCI), the event brought together stakeholders from several sectors to validate the World Bank’s assessment of the country’s situation on open data readiness.

The ODRA reveals that Mauritius is well poised to open up datasets.  Some 15 datasets spanning budget data, expenditure data, labour statistics, education and health statistics and many more are ready to be made available in machine readable format and so released as open data, that is, data that can be used, reused and redistributed freely.

Other main findings also show the following: there is a strong demand for open data from developers, private sector and researchers; and, Government could move quickly with an open data since it already publishes statistical data, but needs to conform to requirements of open data (terms of use and format).

In order to implement a sustainable program, the ODRA recommends the importance of a strong and sustained leadership across Government.  It also notes that the MTCI and Statistics Mauritius are well placed to lead change at operational level with the support from the Reforms Steering Council and Ministries.

The Open Data programme

It is recalled that Mauritius is moving forward with an Open Data programme conducted in partnership with the World Bank.  Hence, in June 2015, a World Bank field mission was in the country to assist in the evaluation of its situation on open data readiness and provide valuable inputs to help come up with the right strategy to exploit open data initiatives as is the case in large democracies like India and the USA.

In the context of the assessment, a series of focused meetings/interviews were held with key stakeholders including government, citizens and businesses.  Main themes addressed were: leadership, law, Government institutions, management of data, demand for data, capabilities of business, finance and national IT infrastructure.

Some benefits of open data include: transparency and accountability (civil society organisations and media will analyse the data and publish results feeding into policy); data exchange across government (obtaining datasets within government becomes easier); and data-informed policy making (policymakers base their decisions on applicable, relevant data).

Data has become the new oil in today’s world.  By going through open data, economies across the world from Europe, America, Asia to Africa, have witnessed a boost in economic growth.

28 October 2015

Mauritius firms used to hold outbound investments from Thailand

Mauritius has been the holding-company jurisdiction of choice for Thai multinationals seeking to make overseas investments, because of the synergy between Thai and Mauritius corporate-income-tax regimes

27 October 2015

Doing Business 2016: Measuring Regulatory Quality and Efficiency

Doing Business 2016: Measuring Regulatory Quality and Efficiency, a World Bank Group flagship publication, is the 13th in a series of annual reports measuring the regulations that enhance business activity and those that constrain it. Doing Business presents quantitative indicators on business regulations and the protection of property rights that can be compared across 189 economies—from Afghanistan to Zimbabwe—and over time.


Doing Business measures regulations affecting 11 areas of the life of a business. Ten of these areas are included in this year’s ranking on the ease of doing business: starting a business, dealing with construction permits, getting electricity, registering property, getting credit, protecting minority investors, paying taxes, trading across borders, enforcing contracts and resolving insolvency. Doing Business also measures labor market regulation, which is not included in this year’s ranking.

Data in Doing Business 2016 are current as of June 1, 2015. The indicators are used to analyze economic outcomes and identify what reforms of business regulation have worked, where and why. This year’s Doing Business report continues a two-year process of introducing improvements in 8 of 10 Doing Business indicator sets—to complement the emphasis on the efficiency of regulation with a greater focus on its quality.

Main Findings

Doing Business 2016: Measuring Regulatory Quality and Efficiency finds that entrepreneurs in 122 economies saw improvements in their local regulatory framework last year. Between June 2014 and June 2015, the report, which measures 189 economies worldwide, documented 231 business reforms. Among reforms to reduce the complexity and cost of regulatory processes, those in the area of starting a business were the most common in 2014/15, as in the previous year. The next most common were reforms in the areas of paying taxes, getting electricity and registering property.

Costa Rica, Uganda, Kenya, Cyprus, Mauritania, Uzbekistan, Kazakhstan, Jamaica, Senegal and Benin are among the economies that improved the most in 2014/2015 in areas tracked by Doing Business. Together, these 10 top improvers implemented 39 regulatory reforms making it easier to do business.

Sub-Saharan Africa alone accounted for about 30% of the regulatory reforms making it easier to do business in 2014/15, followed closely by Europe and Central Asia. Members of the Organization for the Harmonization of Business Law in Africa were particularly active: 14 of the 17 economies implemented business regulation reforms in the past year—29 in total. Twenty-four of these reforms reduced the complexity and cost of regulatory processes, while the other five strengthened legal institutions.

This year’s report adds indicators of quality to four indicator sets: registering property, dealing with construction permits, getting electricity and enforcing contracts. In addition, the trading across borders indicators have been revised to increase their relevance. The underlying case study now focuses on the top export product for each economy, on a very common manufactured product (auto parts) as its import product and on its largest trading partner for the export and import products.

Seven case studies featured in the report: Five focus on legal and regulatory features covered by new or expanded indicators being introduced this year—in the areas of dealing with construction permits, getting electricity, registering property, trading across borders and enforcing contracts. The other two analyze other areas of interest in the historical data set.

26 October 2015

Introducing 'Aquacasia': The Menu that wants to turn Mauritius into a Global Foodie Hotspot

Esquire travel to the paradise resort of Shanti Maurice to try a new food concept that brings together the best dishes of the islands of the Indian Ocean


Inside the Secretive World of Tax-Avoidance Experts

A sociologist realized that if she were ever going to understand global inequality she would have to become one of the people who helps create it. So she trained to become a wealth manager to the ultra-rich.

From London to Mauritius: 150 years of globalised education

It was 150 years ago that the University of London teamed up with a college on an island in the Indian ocean. Sir Adrian Smith reflects on the significance of this partnership

 Who could have imagined that London and the island of Mauritius would between them change the face of higher education the world over?

23 October 2015

The island that was once home to the Dodo wants to kill off thousands of protected bats

In a move that has outraged conservationists, the government of the Indian ocean nation of Mauritius is planning to kill off nearly 20,000 Mauritius fruit bats, a protected species that is found only on the island.

Mauritius: The Good Governance and Integrity Reporting Bill

Explanatory Memorandum

The main objects of this Bill are to –

(a) promote a culture of good governance and integrity reporting in Mauritius;
(b) stimulate integrity reporting in the public and private sectors;
(c) encourage positive reports of acts of good governance and integrity;
(d) disclose malpractices and recover unexplained wealth; and
(e) protect and reward persons making disclosures and reports.

S. BHADAIN
Minister of Financial Services,
Good Governance and Institutional Reforms
23 October 2015

21 October 2015

Hara-kiri économique

On a beau dire que l’île Maurice n’est pas un «paradis fiscal» ni une «destination de trafiquants», mais notre actuel ministre des Finances n’en démord pas. Et ne voilà-t-il pas qu’il en rajoute une couche en laissant entendre que notre traité fiscal avec l’Inde favorise le «round tripping». On s’est blessé en se tirant une balle au pied, maintenant on se frappe mortellement pour en finir une fois pour toutes. La politique ne pourra pas renverser ce qui est technique : les jeux sont faits avant même la rencontre du Premier ministre mauricien avec son homologue indien.

War on Want: Corporate tax dodging costs Zambia $3 billion a year

Zambia is losing $3 billion a year from corporate tax dodging according to a new report launched by War on Want. The sum is equivalent to nearly twice Zambia’s spending on health and education.

Extracting Minerals, extracting Wealth: How Zambia is losing $3 billion a year from corporate tax dodging’, examines the Zambian operations of Glencore, Vedanta and Associated British Foods – companies based in the UK or listed on the London Stock Exchange.

The report focuses on the complex corporate structures and mispricing that robs Zambia of revenue that could fund essential public services. It highlights how the ability of companies to get away with tax dodging depends on the willingness of governments around the world to allow them to do it.

Owen Espley, Economic Justice Campaigner at War on Want, said:

This is a staggering sum of money to lose. In a country where 74% of the population live on less than $1.25 a day, this scale of tax dodging is depriving the Zambian people of revenue that could fund vital healthcare, public services and anti-poverty programmes.

Public outcry over lost tax revenues led to Zambian government attempts in 2014 to address how mining companies avoided tax. These attempts were powerfully opposed by mining corporations, who threatened to cut thousands of jobs and billions of dollars of investment.

While ordinary Zambians are being stripped of their wealth and power, the actions of the UK government continue to undermine Zambia’s attempts to collect tax revenues.

George Osborne must abolish the UK network of tax havens and investigate the UK companies at the heart of this global extortion racket that is depriving Zambia of schools and hospitals.

Global tax rules need rewriting, but this cannot be left to a rich nation’s club like the OECD. Developing countries must have an equal seat at the table, and until they do we will continue to see global corporations abusing their power and robbing nations of their wealth.

Extracting minerals, extracting wealth: how Zambia is losing $3 billion a year from corporate tax dodging

Zambia has abundant natural resources - including minerals and agriculture yet gains little tax revenue from the extraction of its resources, leading to lost oppportunities to invest in public services such as education and health.

This report reveals how multinationals are able to avoid paying their fair share of tax. It looks at three companies: Glencore, Vedanta and Associated British Foods which are based in the UK or are listed on the London Stock Exchange. The report describes a total of $3 billion beling lost to the Zambia exchequer as well as the powerful international opposition Zambia faced when it attempted to reform its tax system to get a fair share.


Le temps de la transition

«Les mots sont des pistolets chargés». Cette citation sied parfaitement à la situation particulièrement délicate que vivent actuellement les opérateurs du global business. Pris en tenaille entre les commentaires du ministre des Finances et les attaques répétées de la presse internationale, notamment indienne, et de certaines organisations non gouvernementales étrangères, l’industrie ne sait plus à quel saint se vouer.

Ginger Thai: Laissez-vous charmer par la Thaïlande

At the crossroads of many countries and cultures, Thailand retained and adapted to its own rich culinary identity, the best of Chinese, Portuguese and Indian cuisine. Already in the early 19th century, King Rama II composed a poem describing the variety of Thai cuisine.

20 October 2015

Mauritius Diaspora Scheme

The government of Mauritius strongly believes that our dispersed Mauritian Diaspora community is a precious asset to our economy.

The Mauritian Diaspora Scheme has been set up with the aim to attract members of the Mauritian Diaspora back to Mauritius to participate in the economic development of the country.



19 October 2015

Frontier Markets: Mauritius, Africa's Most Competitive Economy

About 500 miles east of the island of Madagascar, in the Indian Ocean, lays the idyllic island nation of Mauritius. The island lays on the trade routes that were so very important to the growing empires of France and Britain and was highly prized by both. Prior to that, both the Arabs and the Dutch had visited the island on several occasions, establishing colonies. The British brought Indian troops to the island after the First World War and turned them into indentured labor to help on the sugar cane plantations, but their plight was much better than slaves and eventually they became an integral part of the multi-ethnic culture of the island.

FSC Mauritius - Vacancy: Position of Chief Executive

The Commission is inviting applications from high calibre professionals for the position of Chief Executive. The appointed person will have the ultimate responsibility to ensure that the strategic objectives and operational goals of the Commission are achieved whilst providing strategic leadership direction to staff of the Commission.

Candidates need to possess relevant regulatory experience and a good understanding of working with a wide and diverse group of stakeholders.

Employment will be on a contractual basis for an initial period of 2 years.

Benefits comprise of an internationally attractive remuneration package, which will commensurate with qualifications and experience.

For further information and a detailed Position Description, log on to the Commission’s website (Careers Section) at: www.fscmauritius.org

Closing date for applications is 05 November 2015.

The Commission reserves the right:
  • To call only the best qualified and experienced candidates for the selection exercise; and
  • Not to make any appointment as a result of this advertisement.
Financial Services Commission
19 October 2015

16 October 2015

FSC Mauritius issues Public Notices – Revocation of the Investment Adviser (Unrestricted) Licences and Category 1 Global Business Licences

  • FSC Mauritius issues Public Notice -     Revocation of the Investment Adviser (Unrestricted) Licence and Category 1 Global Business Licence of EntreCap » Read More
  • FSC Mauritius issues Public Notice -   Revocation of the Investment Adviser (Unrestricted) Licence, Treasury Management Licence and Category 1 Global Business Licence of CountingHouse Limited » Read More
  • FSC Mauritius issues Public Notice - Revocation of the Investment Adviser (Unrestricted) Licence and Category 1 Global Business Licence of MountRock Investment Management » Read More

Mauritius eyes Africa as pressure mounts on offshore business

  • Indian tax treaty propelled island's finance industry
  • New Delhi's demand for changes may hit business
  • Global pressure to stop firms tax "treaty shopping"
  • Mauritius eyes Africa to drive financial services
Concerned about the impact of tax havens, world powers are tightening the noose on multinationals seeking tax advantages and India wants changes to its tax treaty with Mauritius, forcing the island's new government to re-examine its business model and focus elsewhere.

15 October 2015

IUCN SSC position statement on the culling of the Mauritius Fruit Bat

The Species Survival Commission (SSC) of the International Union for Conservation of Nature (IUCN) has been informed that the Government of Mauritius has decided to implement a cull of the Mauritius Fruit Bat Pteropus niger due to the alleged damage it causes to commercial fruit crops.

The IUCN SSC Bat Specialist Group (BSG) has closely followed the situation with Mauritian Fruit Bats for several years. In 2010 the ex-Co-Chair of the BSG, Professor Paul Racey, and the former Coordinator of the IUCN SSC Bat Red List Authority Coordinator, Mr Tony Hutson, visited Mauritius to discuss management issues relating to this species. They were able to have discussions with stakeholders, see the problem first hand, and provide advice. The Mauritius Fruit Bat is globally threatened, being listed as Vulnerable on The IUCN Red List of Threatened Species.

The threat status of the species was last assessed in 2013. The Mauritius Fruit Bat has shown substantial range contraction since it once also had populations on the islands of Rodrigues and Réunion. The remaining population on Mauritius is consequently very important and the implementation of a cull will very likely result in an up-listing of the species from Vulnerable to Endangered or Critically Endangered on the IUCN Red List, which will damage the reputation of Mauritius as a world leader on conservation. Through Prof Paul Racey and the University of Bristol, UK, the BSG has facilitated a post-doctoral research project implemented by the Mauritian Wildlife Foundation, and endorsed by the Ministry of Agro-Industry and Food Security, to look at the impact of fruit bats upon fruit crops, and the movement and feeding ecology of the Mauritius Fruit Bat. The results of these studies, and information from elsewhere, has moved the situation forward with some encouraging findings suggesting there are opportunities for finding a workable solution. The key information is provided below:

Damage to fruit production:

1. The high level of damage to commercial fruit that it is widely claimed to be caused by the fruit bats is not supported by the results of the research. The damage caused by the bats is fairly low and most estimates that have been published in the press are likely compounded with the impacts of other fruit predators such as birds and rats. Preliminary analysis from the postdoctoral project indicates that fruits bats account for around 11% of the damage on big mango trees and 3% on small trees while birds are responsible for 0.8% on big trees and 8% on small trees. The majority of fruits on both big and small trees were lost due to physical (not biological) causes, such as being displaced by high winds, (20% and 13% respectively). It was also found that around 9% of litchi fruits in an orchard were damaged by bats, 16% fell to the ground due to over ripening and another 13% were already over ripe on the tree.

2. The impact of fruit predators other than bats also needs careful consideration, with more focus being given to three potentially damaging introduced bird species: the Common Myna Acridotheres tristis, Red-whiskered Bulbul Pycnonotus jocosus and the Ring-necked Parakeet Psittacula krameri. In addition to these, the impact of the very common Black Rat Rattus rattus and Long-tailed Macaque Macaca fascicularis also needs evaluating. 

3. The claims that the Mauritius Fruit Bat population is increasing exponentially and now numbers over 90,000 individuals are unlikely. The disturbance-based counting method used for estimations is not considered best practice for survey and monitoring of colonial Pteropus species as it results in double-counting and inflated estimates. This is in addition to further multiple counting as bats disperse widely across Mauritius and a given individual may use several roosts. Surveys by the Mauritian Wildlife Foundation suggest a population closer to 50,000 that might now be at the maximum level that the current habitat can support.

Issues surrounding the culling of fruit bats:

4. There has been extensive experience of culling fruit bats in Australia, and it has been largely ineffective, since fruit bats are highly mobile and the killed bats are replaced by others from elsewhere.

5. A cull of bats raises welfare and ethical issues since it will inevitably result in injured animals. Moreover, any cull between August and December will coincide with the breeding season when there will be pregnant or lactating female bats. Orphaned young left behind in the colony will starve to death, an inhumane termination.

6. Any cull on a native species needs to be backed by appropriate information on population trends and fluctuations, and data on breeding rates so that the impact of the cull can be accurately predicted. These data on productivity and survival are not available for the Mauritius Fruit Bat. However, other species of Pteropus studied in the wild all have very slow rates of reproduction and population growth. Females can at most give birth to one young per year, pregnancy can last up to six months, and mothers nurse their pups for 3-4 months. Sexual maturity is not reached until the second year. These characteristics of large fruit bats, such as the Mauritius Fruit Bat, mean that populations are slow to recover from reductions and are then highly vulnerable to further perturbations such as cyclones. Tropical cyclones result in high levels of starvation and mortality, precipitating population declines of endemic island fruit bats that can exceed 95%. The Mauritius Meteorological Services reports an increase in the number of storms reaching tropical cyclone strength since 1975, and projects further increases in frequency and intensity of cyclones. Stable populations are critical if the Mauritius Fruit Bat is to withstand the mortality caused by cyclones.

7. The Mauritius Fruit Bat plays a critical role in the pollination and seed dispersal of the country’s native flora, maintaining plant diversity in the heavily fragmented landscape of Mauritius. Mauritius has already lost two (Pteropus subniger and Pteropus rodricensis) of the three species of Pteropus that once contributed to these ecosystem services; viability of the native landscape now hinges on the persistence of robust populations of Pteropus niger.

Mitigation measures:

8. There are more effective means of reducing fruit bat damage to crops than culling. Netting is by far the most effective and we congratulate the Government on the netting initiatives it is implementing. We urge that this approach is refined and extended.

9. We appreciate that the Government has been looking at other mitigation measures and we urge further studies looking at tree size reduction, framed net systems, use of panicle bags, deterrents and break crops which have been successfully implemented elsewhere.

10. We note from the post-doctoral study that there was significant wastage of fruit due to crops not being harvested early enough. This suggests that there may be opportunities for the more effective management of fruit crops.
It is appreciated that there is a conflict between the fruit bats and commercial fruit growing. The evidence we have examined indicates that bats are blamed for losses caused by other fruit predators and other causes. It is probable that the extent of damage caused by bats has been inflated by fruit growers and the popular press. Moreover, we note that in a recent study of attitudes of Mauritians towards fruit bats, over 80% of respondents did not support hunting or culling of bats, reflecting the fact that less than 10% of respondents held negative attitudes towards bats.

Mauritius has developed an international reputation for the high quality of its conservation which is based on innovative approaches and sound science. The work is often showcased, and Mauritius has been identified as one of the few countries where the declining trend in so many endangered species has been reversed. The IUCN Species Survival Commission urges the Government of Mauritius to develop the management of the fruit bats upon the same kind of evidence-based approaches that have worked so well for other species in the country. The IUCN SSC encourages the Government to look for non-lethal solutions to the conflict between fruit bats and commercial crops, and is available to advise on this matter – specifically through the expertise of the Bat Specialist Group.

LUX October 2015

With the trailer for the latest in the James Bond series, Spectre, almost impossible to avoid, we take a look at how you can own a piece of Bond history in the form of rare copies of Ian Fleming’s timeless works. We also take a look at the Aston Martin DB9 GT Bond Edition, a car fit for a super spy.

Also in our Drive section, Ron Fiamma from AIG talks us through how to ensure your fleet of cars stays protected.

In this month’s travel section, the spotlight is on Cape Cod as we take a look at three sumptuous hotels that present the perfect winter getaway. And just to make sure you’re ready for your end of year break, we talk you through the best fashions to pack whether you’re seeking sun or snow.

Following the Great British Bake Off finale we show you how you can become a ‘Star Baker' with a selection of high-end gadgets and luxurious preserves to ensure your culinary efforts are always stunning and delicious.

Global Business Sector: What the BEPS are we doing to defend the country’s interest?

Amidst all the commotion about BEPS and its dubious brandishing by some to justify shoving away the Mauritius-India DTA and turning to the fabled final frontier of Africa, it is encouraging for operators of the global business sector to take cognizance of Mr Arvin Boolell’s appeal (Forum - Le Mauricien, 14th October 2015 edition) to maintain the previous years’ line of forceful canvassing for our financial center, coupled with a sense of ‘moral obligation to defend the reputation of our Global Business’

‘Mise au Point’ of the Bank of Mauritius on a press article in a weekly newspaper

The Bank of Mauritius (Bank) refers to a press article which appeared during the weekend making reference to the “silence” of the Bank with regard to the events related to the BAI Co (Mtius) Ltd.

The Bank wishes to bring the following to the attention of the public:

The Bank enlisted the services of nTan Corporate Advisory Pte Ltd of Singapore to investigate into the complex financial transactions carried out by the BAI Co (Mtius) Ltd and its related parties, affiliates, shareholders and directors, with Bramer Banking Corporation Ltd (In Receivership) and other financial institutions.

The investigation, which started on 23 April 2015, is still on-going.

The Bank considers that nTan Corporate Advisory Pte Ltd of Singapore should be given the opportunity to complete its investigation in total independence and without any interference from the Bank. Accordingly, the Bank clings tenaciously to the view that it should refrain from making any comment on any aspect of the financial conduct of the BAI Group as long as the investigation is not over.

After the completion of the investigation, the Bank would make public a Report and consider the appropriateness of issuing statements regarding its contents.

14 October 2015

Jersey: Positive picture for employment in finance industry as job figures reach four year high

Commenting on the latest Jersey Labour Market Survey released by the States of Jersey Statistics Unit, Geoff Cook, CEO, Jersey Finance, said:

The latest figures for employment in Jersey paint a positive picture. Whilst overall employment in the island is up by 650, jobs in the finance industry, which employs more than one fifth of all employees in Jersey, rose by 250 year on year to reach 12,820, the highest level in four years.

The significant growth in the trust and company administration and legal sub-sectors, which combined saw a headcount increase of more than 200, as well as a rise in jobs in the accountancy sector is clearly very welcome and reflects a strong performance in those sectors, whilst rationalisation in the banking sector, which continues to be impacted by global re-structuring initiatives, is broadly in line with expectations.

Following the latest Jersey Business Tendency Survey earlier this month, which highlighted that one third of finance firms saw a quarterly increase in employment, and with Barclays recently announcing the creation of 65 new jobs in Jersey, there is much room for optimism where employment in the finance industry is concerned.

The U.S. Companies With The Most Offshore Cash

The use of tax havens is ubiquitous across America’s 500 largest companies. Collectively, they hold $2.1 trillion in offshore cash, according to a recent study by Citizens for Tax Justice and the U.S. PIRG Education Fund. Establishing foreign subsidiaries in places with little or no tax such as Bermuda or the Cayman Islands, has allowed  them to avoid an estimated $90 billion in federal income taxes each year.
 The U.S. Companies With The Most Offshore Cash [Infographic]

Global Business : We have to call the bluff of scaremongers

Our stand depends where we sit. From a sitting position Government has chosen to shoot down our Global Business. Why?


12 October 2015

Tackling Tax Avoidance: EU Commission updates information on third countries listed by Member States for tax purposes

The Commission has carried out a technical update of the consolidated version of Member States' lists of third countries for tax purposes, as referenced in the Action Plan for Fair and Effective Taxation (IP/15/5188). The update reflects changes in Member States' assessments of third countries' tax good governance standards, corrections to national lists and Estonia's decision to withdraw all countries from its national list. 

The consolidated list is part of the EU's external agenda against corporate tax avoidance and aims to introduce more transparency into national listing processes across the EU, while also encouraging third countries to engage with Member States on tax good governance matters. The steps taken by the EU contribute to enhancing the dialogue between the jurisdictions and the Member States that list them, and encourage Member States to re-examine their national listings to ensure that they are correct and up-to-date. 

The ultimate goal is to develop a common EU approach, giving Member States collective strength in addressing risks to their tax bases and provide greater legal certainty for businesses and international partners. The Commission has already started discussions with Member States to this end and intends to present a wider strategy against external risks of tax avoidance in 2016. 

11 October 2015

BAI: les Rs 3,6 milliards du 31 décembre 2009 mis en perspective

Le rapport des comptes de la BAI par KPMG pour 2010 était déjà alarmiste. Les auditeurs avaient mis à jour que le groupe n’avait plus assez d’argent: l’absence de cash ne pouvant être valablement compensée par les réévaluations (fair value) d’investissements. La seule source d’argent «frais» était le Super Cash Back Gold, lui aussi en déficit actuariel croissant. En somme, pour payer les assurés, il fallait du cash, donc toujours plus d’assurés. Une spirale sans fin. Cependant, contrairement à ce que l’on peut penser (voir schéma I), les Rs 3,6 milliards qui apparaissent dans les comptes de la BAI, la veille de l’année 2010, pourraient ne pas être qu’une «pirouette» sans substance…

09 October 2015

YouTube - The Paramount Vault

The Paramount Vault showcases a collection of Paramount full-length films and clips including selections that range from black-and-white to color, comedy to horror, and everything in between.
Viewers are invited to explore the vast landscape of cinema’s history, share their favorite films, and discover new ones through this official channel created by Paramount Pictures.

Mauritius: Insurance Industry Compensation Fund + Hit and Run Sub-Fund

Forthcoming regulations under the Insurance Act for the establishment of an Insurance Industry Compensation Fund, as well as a Hit and Run Sub-Fund, to provide for the payment of any claims remaining unpaid by reason of insolvency of an insurer and compensation to persons suffering from personal injury sustained in and resulting from a hit and run road traffic accident.  An annual levy would be imposed on all vehicles, except Government-owned vehicles, registered with the National Transport Authority.  The regulations would come into operation on 1 January 2016.

Finance Uncovered Investigation: MTN’s Mauritian Billions

The Finance Uncovered global network of investigative reporters have today published a cross-border investigation into South African telecoms giant MTN exposing how billions of rand from its subsidiaries in Ghana, Nigeria and Uganda have been shifted to a shell company in the small island tax haven of Mauritius.

The two year investigation spanning five countries was published today in South Africa’s Mail and Guardian, the Ugandan Observer and Ghana Business News.

Ramaphosa and MTN's offshore stash

Shortly after Cyril Ramaphosa left MTN to become South Africa’s deputy president last year, he lashed out at companies that make profits “disappear” by shifting them “to low-tax operations where there is little or no genuine activity”.

But MTN, Africa’s biggest cellphone company, moved billions of rands earned in African countries to offshore tax havens while Ramaphosa chaired its board between 2001 and 2013. This was revealed in a joint investigation by ama­Bhungane and Finance Uncovered, a global investigative journalism network.

Most of the money, which MTN badged as “management fees”, ended up on the Indian Ocean island of Mauritius, where the company employs no staff and appears to own little more than a postbox.

How MTN moved large sums of money out of Ghana, other African countries into tax havens

It has emerged that the telecommunications giant MTN has transferred large sums of money out of Uganda, Cote d’Ivoire, South Africa and Ghana into tax havens.

Although these transfers are badged as payments for management and technical services, in reality much of them end up in a shell company in the tiny Indian Ocean island of Mauritius, where MTN employs no staff.

These fees are counted as a cost of doing business and deducted from taxable profits in the countries where MTN operates outside of South Africa, but questions have been asked about whether these payments are justified.

Jersey represented at Commonwealth, IMF and World Bank conferences

The Assistant Chief Minister, Senator Philip Ozouf, is currently at the world’s largest gathering of financial services ministers in Lima, where the Commonwealth, IMF and World Bank conferences are taking place.

The meeting of Commonwealth ministers and senior finance officials is held in conjunction with the IMF and World Bank annual meetings, which will continue until 11 October. Throughout the week, Senator Ozouf will attend meetings with delegations from G20 countries and with senior executives from global institutions with businesses in Jersey. Meetings are aimed at both reinforcing relationships with global institutions with a presence in Jersey and attracting new business.

Senator Ozouf said “This annual finance event is one of the best attended meetings of the global community of financial services ministers, central bank governors and senior finance industry executives. The keynote speech today will concentrate on actions taken by the G20 and the OECD to enhance transparency in the fight against tax evasion. Jersey has an increasingly strong message regarding the part we continue to play in the global move towards greater transparency.

We have actively supported the United Kingdom Prime Minister and it is notable that the Chancellor will also be in Lima. It is more important than ever before that Jersey's voice is heard on the world stage. This conference is an opportunity for me to hold bilateral ministerial meetings and for our senior official to meet counterparts from governments around the world with the objective of boosting Jersey jobs and growth.

Jersey is a world-class centre of excellence for innovation in financial services. My role here is to promote that, as well as our new and growing tech and FinTech sectors.

Fund management - Two’s a crowd

Could asset managers pose a systemic risk to the economy? Some regulators, looking for the cause of the next crisis, worry that they might, particularly at times when markets are already volatile and liquidity ebbing. Fund-management firms, understandably, take the opposite view: unlike banks, they do not take risks with their own money and do not have much debt.

Insider trading - Friends without benefits

Even a non-decision by the Supreme Court can cause waves. On October 5th, as part of its routine disclosure of upcoming cases, the Court declined to take up a petition related to insider trading. The Justice Department had wanted it to overturn an appeals court’s decision in December to throw out the conviction of two hedge-fund managers. That means the decision will now stand, setting an important legal precedent.

08 October 2015

Drones: Something in the air

This year the Unmanned Aerial Device (UAD) or drone, as it is more commonly known, will be the must have gift for Christmas. With the price of drones starting from as little as £35 these devices are no longer the preserve of the tech geek or hobbyist but are becoming increasingly mainstream. As a result, those of us hoping for something else this Christmas cannot afford to ignore the issues that are raised by our ever more crowded skies.

Belvedere Ponzi latest – Officially confirmed R4bn stolen from investors is tip of iceberg

At Biznews, 2015 will be remembered as the year of the Belvedere Ponzi scheme – a global network of financial fraud and deceit masterminded by South Africans Cobus Kellermann and David Cosgrove. On March 17, when David Marchant of Offshore Alert claimed Belvedere was a massive criminal enterprise, we did our own checking and quickly realised he was on the money. Following the publication of South African angled articles on Biznews, the site was briefly paralysed by a cyber attack. Then came the bullying attempts – heavy handed threats from SA heavyweight legal Werksmans which appears to have engineered the publication of articles taunting Biznews and Offshore Alert as sensationalist and irresponsible. Six months later with R4bn of investor money now officially confirmed as having gone missing and billions more unaccounted for, Belvedere has collapsed, exposed for the Ponzi scheme Marchant always claimed it was. In this special podcast he provides an update on the unraveling of a global network of fraud, fuelled by deceit, blatant lies and corrupt financial advisors. – Alec Hogg


PSG Konsult buys DMH majority stake

PSG Konsult, the financial services arm of PSG Group, has acquired 70% of Mauritius wealth manager DMH Associates for an undisclosed amount.

07 October 2015

Mauritius in talks to review India tax treaty - minister

Mauritius is in talks to review a tax treaty that has made this island of just 1.3 million people the biggest single source of foreign direct investment in India, a nation of 1.3 billion people, the finance minister said on Wednesday.

Mauritius seeks buyer for Britam stake, or sovereign fund may buy

Mauritius has asked a bank in South Africa to help find a buyer for a near 25 percent stake in Kenya's British-American Investments Co (Britam) which was seized from a disgraced tycoon, the finance minister said on Thursday.

06 October 2015

International Arbitration Confirmed as Dominant Form of Global Dispute Resolution

International arbitration, once a second choice to litigation for private dispute resolution, is now conclusively the most preferred form of dispute resolution for cross-border disputes. In a new study published today by Queen Mary University of London (QMUL), in partnership with global law firm White & Case, 90% of the 763 respondents surveyed prefer international arbitration to resolve cross-border disputes, a finding which has increased significantly from QMUL's first international arbitration survey in 2006, where the figure was 73%. Parties now embrace international arbitration thanks to the greater enforceability of arbitral awards, the ability to avoid specific legal systems yet choose arbitrators, and the inherent flexibility of the process, among other benefits.

Preferred Venues

London and Paris continue to be the preferred venues for international arbitration, ranked by respondents as the two most used seats over the past five years (45% and 37%, respectively) and the two most preferred seats (47% and 38%). However, the study shows that Hong Kong and Singapore are gaining momentum, coming in third and fourth. Singapore is perceived to be the most improved seat for international arbitration over the past five years, with Hong Kong following closely behind.

Paul Friedland, partner and Head of the International Arbitration Practice Group at White & Case, said: "London and Paris remain the most popular seats for international arbitration because of their enduring reputation as arbitration-friendly jurisdictions with high quality legal infrastructure. However, as this year's study shows, Singapore and Hong Kong are closing the gap. Both seats have made significant investments in support of international arbitration in recent years, which have made them increasingly attractive locations for users."

Preferred Institutions

When respondents were asked to choose their three preferred institutions, just over two-thirds (68%) included the International Chamber of Commerce (ICC) in their answer, and more than one-third (37%) included the London Court of International Arbitration (LCIA), mirroring the results from the 2010 International Arbitration Survey. The Hong Kong International Arbitration Centre (HKIAC) and the Singapore International Arbitration Centre (SIAC) came in third and fourth (28% and 21%, respectively). The Survey revealed that institutions are primarily chosen due to their high level of administration, neutrality / internationalism and ability to administer arbitrations worldwide.

A Call for More Regulation

A hot topic among users of international arbitration is the extent to which it requires greater regulation. While 70% of respondents felt that there is an adequate level of regulation in international arbitration in general, a clear majority believed that more 'micro-regulation' is needed when it comes to third party funding (71%), tribunal secretaries (68%) and the conduct of arbitrators (55%).

Respondents believed that the most effective way to regulate third party funding is through guidelines, such as those issued by the International Bar Association. A majority of respondents also thought it should be mandatory for claimants to disclose the use of third party funding (76%) and the identity of the funder (63%), but only 27% thought that the full terms of the third party funding arrangement should be disclosed.

The scope of the role of tribunal secretaries was something respondents expressed concern over, with an overwhelming majority showing preference for tribunal secretaries to undertake only those tasks which are neither substantive nor related to the merits of the dispute. 70% of respondents thought the most effective way to regulate tribunal secretaries would be through arbitral institutions.

Professor Loukas Mistelis, Director of QMUL's School of International Arbitration, said: "While arbitration is the most preferred method of dispute resolution, this year's research shows that the global arbitration community increasingly supports greater micro-regulation for many of the specific parties involved. At the same time the survey shows that respondents appreciate the arbitration laws and rules adopted over the last years hence considering further macro-regulation unnecessary."

Room for Improvement?

To reduce the time and cost associated with international arbitration, 92% of respondents favoured inclusion of simplified procedures in institutional rules for claims under a certain value. A requirement that "tribunals commit to and notify parties of a schedule for deliberations and delivery of final award" was particularly welcomed.

The phenomenon of "due process paranoia" was also raised as one likely cause of increased cost and delay. Many felt that the risk of a successful challenge to an arbitral award was insufficient to justify arbitrators' overly cautious behaviour. As such, respondents felt that arbitrators should be more willing to manage proceedings decisively.

Some 93% of respondents favoured the inclusion of emergency arbitrator provisions in institutional rules. This is despite the fact that nearly half (46%) would currently elect to have recourse to domestic courts if in need of urgent relief before the constitution of the tribunal, whereas only 29% would opt for an emergency arbitrator. Users thus prefer to have a wide range of options available to them, regardless of how often they may elect to use them.

Jersey Financial Services Commission (JFSC) Issues Mystery Shopper Report

The Jersey Financial Services Commission (JFSC) has today published a report on findings from its third mystery shopping exercise, conducted in 2014, which examined the experience of retail customers seeking investment advice in Jersey.

The purpose of the exercise was to gather evidence and provide insight into industry standards.

Since the JFSC conducted the previous mystery shopping exercise in 2011, new rules have been introduced aimed at raising professional standards and reducing the potential for product bias through the banning of commission payments for advice provided to retail clients.

The mystery shopping exercise was conducted on behalf of the JFSC by Deloitte LLP on 14 different firms. 

Director-General, John Harris commented:

It was pleasing to observe that in all but one case, firms had updated their business model in response to the revised Codes of Practice introduced in January 2014. Most advisors described, at the outset of client meetings, the range of services provided by their firm as well as the charges that would apply, regardless of the solution recommended.

However, there is still room for improvement and we will continue to work with regulated businesses and other stakeholders in raising standards and to monitor whether our policy initiatives are resulting in better outcomes for consumers.


Legal Week launches Offshore Insight supplement

Legal Week's new standalone supplement Offshore Insight looks at the interaction between offshore firms and their onshore counterparts, focusing on specific practice areas.


The inaugural edition looks at the growth of offshore centres as venues for litigation, and the biggest cases currently going through the courts. Also covered is the impact of increased regulation on local banking and finance practices, and how firms have responded.

05 October 2015

Governance progress in Africa stalling, reports Mo Ibrahim Foundation

The Ibrahim Index of African Governance (IIAG), launched today, indicates that over the last four years, governance progress in Africa has stalled, and reveals a shifting landscape. During the period 2011-14, the African average overall governance score in the IIAG increased only slightly by +0.2 points to 50.1 (out of 100.0), with considerable changes in performance during the last four years at all levels of the Index, both at country and at category level.

Published annually, the IIAG provides a comprehensive assessment of governance performance for each of the 54 African countries. The 2015 IIAG consists of 93 indicators which fall into four categories: Safety & Rule of Law, Participation & Human Rights, Sustainable Economic Opportunity and Human Development.

Twenty-one countries, including five of the top ten, have deteriorated in overall governance performance since 2011. Only six countries register an improvement across each of the four categories of the IIAG: Côte d’Ivoire, Morocco, Rwanda, Senegal, Somalia and Zimbabwe.

At the regional level, the continental trend in overall governance masks varying performances and a widening range between the regions. Southern Africa remains the best performing region, with an average score of 58.9, followed by West Africa (52.4), North Africa (51.2) and East Africa (44.3). Central Africa is the lowest ranking region with an average score of 40.9, and is the only region to have deteriorated since 2011.

The marginal improvement in overall governance at the continental level is underpinned by positive performances in only two categories, Human Development (+1.2) and Participation & Human Rights (+0.7). Both Sustainable Economic Opportunity (-0.7) and Safety & Rule of Law (-0.3) have deteriorated.

Mo Ibrahim, Chair of the Mo Ibrahim Foundation, says: “While Africans overall are certainly healthier and live in more democratic societies than 15 years ago, the 2015 IIAG shows that recent progress in other key areas on the continent has either stalled or reversed, and that some key countries seem to be faltering. This is a warning sign for all of us. Only shared and sustained improvements across all areas of governance will deliver the future that Africans deserve and demand.

Key findings of the IIAG 2015 include:
  • The African average score for overall governance in 2014 is 50.1, a slight improvement since 2011 (+0.2). Over the last four years, only half of the top ten governance performers managed to improve their overall governance score, and 21 of the 54 countries have deteriorated.
  • The Sustainable Economic Opportunity category exhibits both the lowest continental average score (43.2) and the largest performance drop since 2011 (-0.7). Sustainable Economic Opportunity includes the most deteriorated sub-category in the IIAG since 2011, Business Environment (-2.5). This sub-category includes the most deteriorated indicator in the IIAG over this time period, Soundness of Banks (-11.0).
  • Among the generally negative trend of the Sustainable Economic Opportunity category, four countries, Morocco (+11.2), Togo (+9.5), Kenya (+5.9) and Democratic Republic of Congo (+5.4), exhibit impressive gains of more than +5.0 points.
  • The overall governance score range between the best regional performer, Southern Africa, and the poorest regional performer, Central Africa, is more than 18.1 points in 2014. This has widened by +1.7 points since 2011.
  • With a 79.9 score for overall governance in 2014, Mauritius stands over 70 points higher than the continent’s weakest governance performer, Somalia, which achieved a score of 8.5.
  • The top three countries, Mauritius, Cabo Verde and Botswana, all exhibit a decline in overall governance and in at least two of the four components over the last four years, calling into question whether these countries will continue to dominate the top of the rankings in future.
  • The bottom three countries in overall governance are Central African Republic (24.9), South Sudan (19.9) and Somalia (8.5). Two of these, South Sudan (-9.6) and Central African Republic (-8.4), have also registered the most extreme deteriorations, along with Mali (-8.1).
  • The top ten improvers in overall governance over the last four years represent almost a quarter of the continent’s population. Five of these countries, Senegal (9th), Kenya (14th), Morocco (16th) Rwanda (11th) and Tunisia (8th), already rank in the top 20 of the IIAG, leading to the question of whether they might become the continent’s next powerhouses.

OECD/ G20: Examples of BEPS schemes to be eliminated

The OECD/G20 Base Erosion and Profit Shifting (BEPS) Project provides governments with solutions for closing the gaps in existing international rules, that currently allow corporate profits to “disappear” or be artificially shifted to low/no tax environments, where little or no economic activity takes place.

Neutralising Hybrid Mismatch Arrangements


Improving Transparency with Country-by-Country Reporting


Eliminating Treaty Shopping


Collecting VAT in the Digital Age

Final BEPS package for reform of the international tax system to tackle tax avoidance

Arrow actions 13 2015 Explanatory Statement 2015 (EN / FR / ES / DEU)
Arrow Action 1Action 1: Addressing the Tax Challenges of the Digital Economy
Arrow Action 2Action 2: Neutralising the Effects of Hybrid Mismatch Arrangements
Arrow Action 3 2015 Action 3: Designing Effective Controlled Foreign Company Rules
Arrow Action 4 2015 Action 4: Limiting Base Erosion Involving Interest Deductions and Other Financial Payments
Arrow Action 5Action 5: Countering Harmful Tax Practices More Effectively, Taking into Account Transparency and Substance
Arrow Action 6Action 6: Preventing the Granting of Treaty Benefits in Inappropriate Circumstances
Arrow action 7 2015 Action 7: Preventing the Artificial Avoidance of Permanent Establishment Status
Arrow Action 8Actions 8-10: Guidance on Transfer Pricing Aspects of Intangibles
Arrow actions 11 2015 Action 11: Measuring and Monitoring BEPS
Arrow actions 12 2015 Action 12: Mandatory Disclosure Rules
Arrow Action 13Action 13: Guidance on Transfer Pricing Documentation and Country-by-Country Reporting
Arrow actions 14 2015 
Arrow Action 15