New Delhi: Paris is reportedly emerging as a “new tax haven” replacing Mauritius, a newspaper report citing Citi has said.
A report in the Economic Times said that, in the last few months, “a few leading foreign portfolio investors (FPIs) have set up shop in Paris to attract offshore investors and issue participatory notes (PNs) — derivatives sold to foreign investors keen to trade in Indian stocks.”
“Till March 31, Mauritius was the preferred location to carry out such business. But this changed with the revision in the tax treaty between India and Mauritius: there will be capital gains tax on Indian securities bought by any Mauritius entity on or after April 1,” the ET report added.
“Citi has told the finance ministry officials recently that some global banks and funds are taking advantage of India’s treaty with France to escape tax,” ET said.