France and Mauritius are to amend their DTAA

France and Mauritius are to amend their double taxation avoidance agreement to update the standards relating to the exchange of information in fiscal matters.  Finance and Economic Development Minister Pravind Jugnauth and the French Ambassador Jean Francois Dobelle signed an agreement to this effect yesterday. 

The DTAA was signed in December 1980. Article 27 of the agreement already provides for the exchange of information in specific areas. Article 37, however, is now well below the international standards, namely those of the Organisation for Economic Cooperation and Development. 

“The agreement which we have signed today will help us be in line with those standards,” said Mr Jugnauth. The finance minister said the amendment confirms the adherence of both countries to best international practices and to enhance “our commercial and economic ties”. 

The exchange of information in fiscal matters is essential in the fight against corruption, money laundering and terrorism. Mauritius has revised its financial and legal system to empower its institutions to achieve these ends. 

“The Organisation for Economic Cooperation and Development, the World Bank and the International Monetary Fund have all acknowledged the efforts which Mauritius has undertaken in order to consolidate the reputation of its financial centre,” said Mr Jugnauth. 

Mr Dobelle shared the views of the finance minister and said that the agreement is “a step ahead in the already dense economic and social cooperation between Mauritius and France”.

By Nilen Kattany