Mauritius in the forefront in the fight against international tax evasion and other malpractices
Following the recent publication of a number of media reports, stating that Mauritius and 24 other countries would henceforth be treated as “high-risk jurisdictions” by global custodian banks operating in India, high level discussions were held between the Financial Services Commission of Mauritius (FSC) and the Securities and Exchange Board of India (SEBI), within the framework of the existing MoU between the two regulatory bodies.
The SEBI gave the assurance that it is neither working on, nor contemplating to produce any list at its level, which will identify Mauritius as a ‘High Risk’ jurisdiction. The SEBI further affirmed that it has no adverse concerns with respect to the Mauritius jurisdiction and acknowledges all initiatives undertaken by Mauritius to ensure full adherence to best international norms and practices with respect to regulatory oversight and enforcement.
Faraz Rojid, the Head of Financial Services at the Economic Development Board of Mauritius, said that “The Mauritius IFC is a recognised jurisdiction by international authoritative organisations. As a credible and trusted IFC, Mauritius has constantly and consistently implemented significant initiatives and adopted appropriate legislations to enhance its legal and regulatory frameworks for exchange of information and transparency as per the international norms and standards, in order to combat money laundering and terrorist financing. As such, Mauritius has been always in the forefront in the fight against international tax evasion and other malpractices.”
He further added that, “The OECD’s Global Forum on Transparency and Exchange of Information for Tax Purposes rated the Mauritius IFC as a “Compliant” jurisdiction, which is the highest rating. Furthermore, Mauritius was not included in the ‘European Union list of non-cooperative jurisdictions for tax purposes’ published in December 2017.”
In June 2015, Mauritius signed the OECDs’ Multilateral Convention on Mutual Administrative Assistance in Tax Matters. Mauritius currently has an exchange information mechanism with 127 jurisdictions. In addition, Mauritius is a member of the Early Adopters Group committed to the implementation of the Common Reporting Standard (CRS) on the automatic exchange of tax and financial information on a global level, which the OECD developed in 2014.
Mauritius is the first African country to have signed the Intergovernmental Agreement with the United States for the implementation of the Foreign Accounts Tax Compliance Act (FATCA) in December 2017 and is a founding member of the Eastern and Southern Africa Anti Money Laundering Group (ESAAMLG), which looks at combating money laundering, the financing of terrorism and other forms of financial crimes.
In July 2017, Mauritius signed the “Multilateral Convention to Implement Tax Treaty Related Measures to Prevent Base Erosion and Profit Shifting” (MLI). Mauritius has joined the Inclusive Framework to implement the BEPS Recommendations and the new initiative on exchange of Beneficial Ownership information.
It is important to highlight that investors look beyond tax incentives to invest through an IFC. In fact, more than 40% of total investments from Mauritius into Africa are directed towards countries with which Mauritius does not have a tax treaty (or where the tax treaty is not yet into force).
Profile of the Spokesperson
Faraz Rojid is the Head of Financial Services at the Economic Development Board of Mauritius. He was previously Officer-in-Charge of the Financial Services Promotion Agency. Faraz holds an LL.B (Hons.) from the University of London, and an LL.M in International Economic Law from the University of Barcelona. He previously interned at the World Trade Organization; worked as a Legal Consultant for the United Nations in Geneva; and an Investment Executive at the Board of Investment.