Mauritius has decided to provide automatic exchange of tax related information to India to allay apprehensions about Mauritius being used for money laundering activities.
Mauritius PM Navin Ramgoolam, who was in India to attend Narendra Modi’s swearing-in as Prime Minister, affirmed that the island country is open to negotiate the terms of the double taxation avoidance agreement (DTAA) with India.
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Ramgoolam told journalists that his nation has offered additional proposals to prevent anyone from abusing or misusing its tax agreement provisions for illegal activities.
"We both agreed that there must be quick resolution for certainty, clarity and predictability," added Ramgoolam.
"Any Indian company investing in Mauritius has to demonstrate business purpose, commercial value and economic substance."
Mauritius made a proposal to newly-formed Indian government of introducing Limitation of Benefit (LoB) clause to the tax treaty between the countries, while India sought source-based taxation for capital gains.
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