Mauritius has assured India of its readiness to resolve the controversy over its tax treaties and appreciated New Delhi’s help to bolster its security and safety.
“We will constantly make room for improvement, in respect and in compliance with the best international practices,” Mauritius Foreign Minister Arvin Boolell told reporters at a joint news conference with his Indian counterpart here on Thursday.
The issue that was discussed earlier would again be brought up at a scheduled joint working group meeting next month, said Mr. Boolell.
The issue at stake is capital gains tax. The India-Mauritius tax treaty says capital gains accruing in India from investments sourced from Mauritius can only be taxed in that country. As Mauritius does not tax capital gains, investments routed through it are not taxed.
It has been frequently alleged that huge investments in India have been routed through Mauritius to escape the tax net.