Mauritian Finance Minister Pravind Jugnauth and Britain’s High Commissioner in Mauritius Nick Leake have recently signed a protocol amending the existing bilateral double taxation agreement (DTA) in place between the two countries.
Designed to prevent tax evasion with respect to taxes on income and on capital gains, the revised agreement provides for an exchange of tax information in accordance with article 26 of the Organization for Economic Cooperation and Development’s (OECD) model convention.
According to Mauritian Finance Minister Jugnauth, the treaty confirms the commitment of both countries to the principles of good governance as well as their willingness to extend economic and commercial relations.
Jugnauth stated that, with the increase in cross-border investments and transactions, taxpayers generate more and more of their income abroad, with more money transactions taking place across national borders. As a result, the importance of exchanging information in tax matters has increased, Jugnauth declared, in order to levy precise tax contributions on individuals as well as to combat corruption, money laundering and the financing of terrorism.
Finance Minister Jugnauth also took the opportunity to underline the commitment of Mauritius in recent years to reforming the country’s financial system, achieved through implementing changes to its legislative and institutional framework to strengthen financial supervision and to strengthen the fight against financial crimes.
Commenting on the signing of the revised agreement, Leake alluded to the high quality of governance in Mauritius. While noting that the past few years had been difficult in terms of both the global and British economy, Leake underlined the fact that the agreement aims to extend economic relations between the two countries in order to facilitate investment and trade. It is also the duty of both governments to ensure that transactions are made in full transparency, the High Commissioner concluded.
The original agreement aimed at avoiding double taxation between the UK and Northern Ireland and Mauritius was signed in February 1981.
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