“There have been effective exchange of information on 170 cases over three years between the two nations and some were even outside the framework of Double Taxation Avoidance Agreement (DTAA),” Mauritius Minister of Foreign Affairs, Regional Integration and International Trade, Arvin Boolell, told a press conference here.
The visiting Mauritian Minister has Thursday met Indian Prime Minister Manmohan Singh and External Affairs Minister S M Krishna and discussed various issues including revision of DTAA and implications of General Anti Avoidance Rules (GAAR) on FIIs and other investors registered in the island nation.
India has been in dialogue with Mauritius to revise DTAA since 2006 to curb the menace of tax evasion by companies and foreign financial institutions (FIIs) registered in the island nation.
Under the DTAA, a company registered in Mauritius is required to pay capital gains tax in the island nation on capital gains from investments in India. As Mauritius does not levy capital gains tax, the companies escape liability.
On sharing of banking information, Boolell said, “Mauritius has been forthcoming to disclose certain privileged information”.
According to the Minister, Mauritius has been sharing information with the Financial Intelligence Unit, Financial Service Commission and Securities and Exchange Board of India.
Referring to the Vodafone tax case, he said, “within seven days… we have been forthcoming to release appropriate information… (we have done it) whenever required.”