 "Mauritius joins global tax convention to fight black money")
In a significant boost for the global fight against black money, Mauritius has become a signatory to the multilateral framework that provides mutual administrative assistance on tax matters with India and other countries.
The development also comes at a time when India and Mauritius are discussing amendments to their bilateral tax treaty amid apprehension by India that the island nation is being misused to route unaccounted money.
Mauritius has signed the Multilateral Convention on Mutual Administrative Assistance in Tax Matters.
The framework is primarily aimed at ensuring more exchange of tax information among countries to help curb the flow of unaccounted money and assets.
"It's the seventh member of the African Tax Administration Forum to join the Convention and becomes the 87th jurisdiction participating in this truly global instrument to fight international tax avoidance and evasion," Paris-based Organisation for Economic Cooperation and Development (OECD) said in a statement on Tuesday.
Developed by OECD and the Council of Europe, the convention provides a comprehensive multilateral framework for exchange of information and assistance in tax collection.
The convention also provides for administrative assistance among tax authorities for information exchange, including automatic exchange, simultaneous tax examination and assistance in the collection of tax debt.
Last year, Mauritius became one of the first 51 jurisdictions that signed a multilateral competent authority pact agreeing to automatically exchange financial account information.
Mauritius has committed to start exchanging automatically in 2017 and has now joined the legal instrument, which once ratified serves as the basis for implementation of the multilateral agreement.
India, the US, Switzerland and the UK are among the 87 jurisdictions participating in the convention.
During his visit to India last week, Mauritius Finance Minister Seetanah Lutchmeenaraidoo had assured India that it would not allow shell companies to operate from the island nation.
"We want investors from India who come to Mauritius to add substance to what they do. We don't want shell companies and will refuse shell companies because they are of no use to us, no use to India.
"In fact, we are doing in Mauritius what Prime Minister (Narendra) Modi is doing here. We are cleaning the house," Lutchmeenaraidoo had said.
However, negotiations to amend India-Mauritius tax treaty have been hanging fire for quite some time now.
Officials from the two sides are scheduled to meet on June 29-30 for technical discussions on the bilateral treaty.
The development also comes at a time when India and Mauritius are discussing amendments to their bilateral tax treaty amid apprehension by India that the island nation is being misused to route unaccounted money.
Mauritius has signed the Multilateral Convention on Mutual Administrative Assistance in Tax Matters.
The framework is primarily aimed at ensuring more exchange of tax information among countries to help curb the flow of unaccounted money and assets.
"It's the seventh member of the African Tax Administration Forum to join the Convention and becomes the 87th jurisdiction participating in this truly global instrument to fight international tax avoidance and evasion," Paris-based Organisation for Economic Cooperation and Development (OECD) said in a statement on Tuesday.
Developed by OECD and the Council of Europe, the convention provides a comprehensive multilateral framework for exchange of information and assistance in tax collection.
The convention also provides for administrative assistance among tax authorities for information exchange, including automatic exchange, simultaneous tax examination and assistance in the collection of tax debt.
Last year, Mauritius became one of the first 51 jurisdictions that signed a multilateral competent authority pact agreeing to automatically exchange financial account information.
Mauritius has committed to start exchanging automatically in 2017 and has now joined the legal instrument, which once ratified serves as the basis for implementation of the multilateral agreement.
India, the US, Switzerland and the UK are among the 87 jurisdictions participating in the convention.
During his visit to India last week, Mauritius Finance Minister Seetanah Lutchmeenaraidoo had assured India that it would not allow shell companies to operate from the island nation.
"We want investors from India who come to Mauritius to add substance to what they do. We don't want shell companies and will refuse shell companies because they are of no use to us, no use to India.
"In fact, we are doing in Mauritius what Prime Minister (Narendra) Modi is doing here. We are cleaning the house," Lutchmeenaraidoo had said.
However, negotiations to amend India-Mauritius tax treaty have been hanging fire for quite some time now.
Officials from the two sides are scheduled to meet on June 29-30 for technical discussions on the bilateral treaty.