M Mosafeer
Director
Large Taxpayers Department &
International Taxation Unit
IFA Conference, May 2012
1.
2.
3.
Legal Provisions for EOI
Mauritius Combined Peer Review
Treaty Update
 S124
of Income Tax Act
 Obligation to furnish information
“Notwithstanding section 44(6) of the Financial Services
Act 2007, every person, when so required by the
Director-General, shall, within the time fixed by the
Director-General, give orally or in writing, as may be
required, all such information as may be demanded of
him by the Director-General for the purpose of enabling
the Director-General –
(a)to
make an assessment or to collect tax; or
(b)to comply with any request for the exchange of
information under an arrangement made pursuant to
section 76.

S64 of Banking Act
(15)
This section shall be without prejudice to the
obligations of Mauritius under any international treaty,
convention or agreement and to the obligations of the
central bank …………
S74 of Income Tax Act
Arrangements for relief from Double Taxation and
for The Exchange of Information
The Minister may enter into arrangements with the
government of a foreign country –
a)
with a view to affording relief from double
taxation in relation to foreign tax imposed by the
laws of that country and income tax; or
b) For the exchange of information with a view to
assisting –
1.
i.
ii.
iii.
in the determination of credits and exemptions in
respect of income tax and foreign tax;
in the prevention of fraud; or
in the administration of the laws in relation to income
tax and foreign tax.
S76 (contd.)
5)
Where an arrangement is made under
subsection (1), the obligations as to secrecy
imposed under section 154 shall not prevent
the Director-General from disclosing to an
officer authorised by the government with
which the arrangement is made such
information as is required to be disclosed
under the arrangement.
Initial Review
A.



Combined Phase 1 and 2 review carried out in
June 2010
Review report published in January 2011
Review determinations:



All elements found to be in place except the element
relating to the keeping of reliable accounting records
by entities.
Element not in place concerned GBC2 companies that
were required to prepare only annual financial
summaries.
Underlying documentation to be kept by trusts and
sociétés.
Remedial Action
B.

ITA amended in December 2010 to require
keeping of underlying documentation by all
persons deriving income including trusts and
societés.

Companies Act amended in July 2011 to require
GBC2 companies to keep full accounting records
and underlying documentation.
Supplementary Review Report
C.
Supplementary peer review report published in
October 2011 determining all elements to be in
place; some need improvements.
The report recognises that “Mauritius is putting in
place a national strategy for an efficient exchange of
information system, and answers most requests
within 90 days. The competent authority (Mauritius
Revenue Authority) has created a team of
professionals to answer exchange of information
requests and is enhancing their professional
capacities and methods to cope with difficult cases
or complex requests”.


36 DTA in force


9 DTA awaiting ratification


Australia
9 TIEA awaiting ratification


(Canada, Greece, Portugal, Czech Republic, Iran, Burkina
Faso, Algeria, Yemen, Saudi Arabia, Vietnam, St. Kitts,
Tanzania)
1 TIEA in force


(Malawi, Nigeria, Egypt, Kenya, Ghana, Monaco, Congo, Russia
and Zambia)
12 DTA being negotiated


(Details available on www.mra.mu)
(Nordic Countries (Denmark, Finland, Faroe Islands, Greenland
Iceland, Norway), Guernsey, Greece, Isle of Man)
5 TIEA being negotiated

(Netherlands, St. Lucia, Argentina, Samoa Island & Austria)
 Article
26
Updated
>China
>Uk
>France
>Italy
>Luxembourg
>Seychelles
>Belgium
Being updated
>Botswana
>Mozambique
>Malaysia
 New
DTA negotiated with existing partners

Germany

South Africa

Sweden
 The
Convention on Mutual Administrative
Assistance in Tax Matters.


A multilateral agreement designed by the OECD
to promote international cooperation in the
assessment and collection of taxes, in particular
with a view to combating tax avoidance and
evasion.
Mauritius soon to sign the Convention.
 Mauritius
committed to the
transparency and effective
information.
Adheres to
standards on transparency &
information set by OECD


concepts of
exchange of
international
exchange of
Continue to widen its treaty network
Ensure information is exchanged effectively
within agreed timelines.