Africa-Press – Mauritius. We do not understand the rationale around the choice of the 21 countries, but we seek clarification from the authorities concerned, said Mauritius Minister
The island nation fears that keeping it outside the ambit of the new rules could lead to investors turning to other destinations Last month, CBDT released a notification that exempted investors from 21 foreign jurisdictions from Angel Tax provisions
The recently unveiled angel tax norms seem to have created flutters across borders. The Mauritius government reportedly plans to seek clarifications from Indian authorities on the exclusion of the island nation from the list of countries where investors will not be liable for Angel Tax.
“So far, we do not understand the rationale around the choice of these 21 countries, but we are seeking clarification from the concerned authorities,” said Mauritius’ minister of financial services Mahen Kumar Seeruttun, according to Livemint.
While flagging the island nation’s exclusion, Seeruttun said that Mauritius was one of the few countries in the world to have complied with all 40 Financial Action Task Force (FATF) mandates related to anti-money laundering and financing of terrorism.
He also claimed that the island nation had put in place all strict ‘substance’ requirements for global financial services firms based out of Mauritius.
In the parlance of global anti-tax avoidance laws, substance mandates require a firm looking to set base in a country to fulfil minimum substance requirements, which range from having a local office to having local employees.
The vociferous opposition is likely the result of the potential impact that the new rules could have on the prospects of Mauritius as a major route for investments flowing into unlisted Indian companies.
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