Ready to support Sp Investigtn Team. Mauritius to take measures to ensure it remains jurisdiction of repute - FM Bollel to @SushmaSwaraj
— Syed Akbaruddin (@MEAIndia) November 3, 2014
In the early 1990s, India signed a tax treaty with Mauritius that provided significant tax benefits to investments routed from there. The extent of foreign portfolio flows coming through Mauritius is not in the public domain, but it is the largest source of foreign direct investment.A prominent Mauritius angle emerged in the investigations into the 2G scam. But recent developments have made it possible to start the process of cleaning up the Mauritius route which enforcement officials believe is a popular route to bring back money in India that had earlier been illegally taken out.
Seize new opportunities unfolding in India - Minister @SushmaSwaraj to investors in Mauritius. pic.twitter.com/1Op2eWAHuv
— Syed Akbaruddin (@MEAIndia) November 3, 2014
It is a known fact that a handful of persons have acted as directors for about 30,000 companies located in Mauritius. These companies exist only on paper and addresses of many of them are mere post box number.
Tax havens like Mauritius helps black money to come back into India as white money and Indian tax evaders continue to send illicit money abroad through hawala route.
An attempt had been made to convince Mauritius to re-negotiate the double tax avoidance agreement (DTAA),which has resulted in massive tax losses to India. Now, the Supreme Court-appointed Special Investigation Team (SIT) on black money wants such tax treaties to be re-drafted, a move that will put the current government in a spot.
