Mumbai: Hopeful of signing a new TIEA (Tax Information and Exchange Agreement) with India soon, Mauritius has said its regulatory authorities and financial intelligence units are actively cooperating with their Indian counterparts for sharing of information.
The TIEA would help the two countries to exchange information on tax matters of entities doing business in the two countries.
"The Tax Information and Exchange Agreement between India and Mauritius has been finalised by both countries and Mauritius is in fact already applying it," Financial Services Commission (FSC) Chairperson Marc Hein said.
FSC is Mauritius' integrated regulator for global business companies and non-banking financial services sector.
"We hope that the agreement will be signed by both parties whenever both governments are ready for this," said Hein, who was here to participate in an international taxation conference.
According to Hein, Mauritian authorities have been fully co-operative with their Indian counterparts to furnish information whenever "reasonable information" has been requested to the Mauritian authorities.
"The Financial Services Commission and SEBI have been exchanging information for years," Hein said and added that the "apart from regulatory authorities the Mauritian Financial Intelligence Unit also cooperates with the Indian FIU for exchange of information".
While a DTAA is already in place between two countries, it is being revised amid concerns that the Indian Ocean nation was being used for round-tripping of funds to and from India, although Mauritius has always maintained that there have been no concrete evidence of any such misuse.
The two countries had signed this DTAA in 1982 when late Indira Gandhi was India's Prime Minister and was part of various steps initiated by the two countries at that time for strengthening the flow of investments to and from Mauritius.
Meanwhile, Mauritius has also agreed to include a 'limitation of benefits (LOB)' clause in its revised tax treaty with India. The LOB clause limits treaty benefits to those who meet certain conditions including those related to business, residency and investment commitments of the entity seeking benefit of a Double Taxation Avoidance Agreement (DTAA).
First Published: Sunday, December 15, 2013, 12:26