Uncertainties due to GAAR: Indian Offshore Companies Leave Mauritius

Recall that these are the Hongkong and Shanghai Bank Corporation (HSBC) and its subsidiaries Axis and Yes Bank which gave the sign of the departure of Maurice few weeks ago. What had been billed as a repositioning of the global HSBC has since been emulated more than two dozen other companies of Mauritius offshore just follow suit.

For the Indian press, these are the uncertainties that result in the departure tax. It is true that the General Anti-Avoidance Rule which will cancel tax treaties and thereby frightens Americans react. But even if it is not yet done, businessmen hate uncertainty.

But the Indian press quoted an equally plausible reason: the Indian tax authorities are putting pressure to detect and punish the Indians - residents and non residents - who invest in the Indian market through offshore. What is forbidden.

Singaporeans already rubbing their hands even if they can not replace Maurice because of the limitations of Benefits, which handicaps them. An offshore company must justify spending 200,000 Singapore dollars to qualify for benefits of their treaty with India. The game is not worth the candle, as Singapore takes the right hand small tax concessions it accords with the left hand.

For some operators, the GAAR is obviously scared, but in business life, there are some who arrive while other leave. Especially as the favourite target of offshore companies, it is Africa to India and 40% to 23%.

For Mauritian operators, the two dozen companies that have packed their bags are far from constituting the bulk of the offshore sector.