New Delhi, Jan 19 (Inditop.com) India should not single out Mauritius in its attempt to curb tax avoidance as the African nation’s image as a financial haven is ill-placed and distorted, according to its visiting Vice Prime Minister Ramakrishna Sithanen.
“Mauritius is definitely not a tax haven,” Sithanen, who holds the portfolios of finance and economic empowerment, told a business roundtable to forge trade and economic ties with India.
“Financial services form just 12.5 percent of our gross domestic product,” he said, also seeking to dispel the notion that his country’s tax holiday policies were being used to re-route money and save on taxes in third countries.
“We have suo moto tried to prevent round-tripping. Till date no case of round-tripping has been brought forward and proved,” said Sithanen.
Round-tripping refers to the practice of investing capital in one country through a subsidiary, which at a later date is then brought back into the original country in the guise of foreign direct investment, which is deemed illegal by many territories.
Sithanen also urged India not to single Mauritius while proceeding with tax treaty reviews aimed at curbing tax evasion.
“India should not single out Mauritius in the tax treaty review. We would like the footprint of Indian companies to increase.”
In the last decade, India received over $80 billion as foreign direct investment, of which more than 40 percent or $35.18 billion came from Mauritius.
