The global business sector is feeling the heat. The impending changes on the fiscal front worldwide call for a remodelling of its structure. The renegotiation of the tax treaty with India that came into force on April 1, 2017 has been a wake-up call for operators. The Mauritian jurisdiction had, for the major part, positioned itself as an India-centric model for the past 25 years or so.
Other global pushes are also inching Mauritius towards a more globally acceptable model. After the implementation of the Foreign Account Tax Compliance Act (FATCA) introduced by the US to combat tax evasion by improving exchange of information, Mauritius has now committed to sign by June 30, 2017 the Multilateral Instrument (MLI) to implement the tax treaty measures in the OECD/G20 BEPS Action Plan. These measures have stemmed from the need for International Financial Centres (IFCs) to demonstrate more transparency, generating volatility in markets. Jurisdictions around the world, including Mauritius, are under pressure to comply while continuing to function but also battle against the negative perception about tax evasion, round-tripping and money laundering associated to them.