Mauritius Minister of Foreign Affairs, Regional Integration and International Trade, Dr Arvin Boolell has said that the island nation has exchanged information related to tax on a total of 170 cases with India over three years.
He also said that the two countries have made progress in on the Double Taxation Avoidance Agreement since 2006. Dr Boolell pointed out that the some of the information shares between the countries was even outside the scope of the existing information, indicating a new level of trustful relationship between the regional allies.
Speaking about the General Anti Avoidance Rules, he said that the domestic laws should not overrun the international treaties of the governments. Under the India-Mauritius tax treaty provides, the capital gains occurring in India from an investment in the country from Mauritius can only be taxed in Mauritius.
Experts say that as authorities in Mauritius do not impose a tax on capital gains, several firms get away without paying taxes on gains. A large number of investment proposals are routed through Mauritius to India in order to save taxes. Thus the Indian government is planning to bring in General Anti-Avoidance Rules in order to prevent the abuse of the treaty.
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