Mauritius: Revenue Authority contributing to extending tax treaty network

The Mauritius Revenue Authority has been actively engaging in extending the Mauritius Tax Treaty network for several years now and is pursuing to do the same this year also.

From 7th to 11th  March 2022, officials from Mauritius and Hong Kong met for the second round of negotiations for the conclusion of a Double Taxation Avoidance Agreement (DTAA) between the two countries. The negotiation took place virtually at the seat of the Mauritius Revenue Authority in view of the COVID-19 sanitary measures.

The Agreement negotiated is in line with the OECD and UN models and complies with the OECD/G20 Base Erosion and Profit Shifting (BEPS) recommendations. Over and above clarifying the taxing rights of each country on income covered by the Agreement, the treaty also

·        Gives certainty to investors in their dealings with Mauritius or Hong Kong;

·        Creates an environment conducive for greater cross-border investment flows between the two countries;

·        Establishes a framework for the exchange of information between the two countries’ tax authorities with a view of combatting tax evasion; and

·        Provides a mechanism to taxpayers for the resolution of tax disputes.

The Agreement will come into force once signed and ratified. To date, there are 45 tax treaties in force and information in relation to DTAAs in force may be obtained by consulting the MRA website at https://www.mra.mu/index.php/taxes-duties/international-taxation.

MRA hosts the 28th World Custom Organisation (WCO) ESA Governing Council Meeting

The MRA was the host of the two-day meeting of the 28th World Custom Organisation (WCO) ESA Governing Council Meeting from 12-13 May 2022. The meeting was held at the newly inaugurated Integrated Customs Clearance Centre of the Mauritius Revenue Authority (MRA) near the Mauritius International Airport and was attended by Commissioner Generals, Heads and Commissioners of Customs of some 24 countries of the Eastern and Southern African (ESA) region together with observers from the Southern African Development Community (SADC) and Common Market for Eastern and Southern Africa (COMESA). This was the first in-person regional meeting organized by the MRA following the COVID-19 pandemic.

Some important issues on the agenda of the Meeting included

the New Regional Strategy plan for the period 2022-2025, deliberation on decisions of the 35th Regional Steering Group Meeting as well as the ESA Risk Management Compendium and Gender Equity, Equality and Diversity.

Its association to the WCO and the hosting of such Customs Meeting indicates the importance the MRA attaches to the role of customs in trade facilitation and protection of borders with the entry of illicit products. Recently, the COVID-19 pandemic also showed the importance of customs in maintaining continuity in the supply chain.

With changing patterns in trade and the volatile business environment, customs administrations need to modernize and build capacity of officers in making use of innovative technologies so as to fight against undervaluation of goods effectively thus preventing leakage of government revenue.