Worldwide Locations:
Mauritius
Mauritius
Our newsletters cover a variety of tax and financial topics relevant to both individuals and corporations. Make sure to subscribe to our mailing list to get the latest insights on the tax landscape.
Andersen in Mauritius is pleased to present the Taxation Highlights of the Finance (Miscellaneous Provisions) Act 2024, which received presidential assent on 26 July 2024.
The Taxation Highlights covers the salient updates to the tax laws in Mauritius, including the CCR Levy, additional tax exemptions, credits and deductions, VAT updates and changes to tax administration.
Key Issue: Whether the royalty fees paid by Avago Technologies Trading Ltd (ATTL) to its related entity, GEN IP (Singapore), were excessive, not at arm's length, and constituted a tax avoidance arrangement?
Executive Summary: On 4 July 2024, in the matter of Avago Technologies Trading Limited (ATTL) v/s Director General, MRA, the Assessment Review Committee (ARC) ruled in favour of the Mauritius Revenue Authority (MRA) and determined that the royalty fees paid by the Mauritian company were excessive and not at arm's length, constituting a tax avoidance arrangement. The ARC also supported the MRA's position that the royalty fees claimed as deductions by ATTL were inflated to shift profits from Mauritius (where ATTL would have suffered an effective tax rate of 3% on its profits) to Singapore, where the royalty fees were exempt.
On 28 June 2024, the Assessment Review Committee (“ARC”) ruled against the Company by denying the partial exemption claimed on its interest income.
We are pleased to share with you the Andersen Mauritius Budget Highlights 2024/2025. Our analysis covers the essential tax highlights and the implications for you & your business, equipping you with insights which will help you navigate the fiscal landscape.
On 30 May 2024, the Assessment Review Committee (“ARC”) ruled in favour of Mr Julien by allowing the interest relief claimed by Mr Julien in his tax return on a loan contracted by him for the settlement of a previous loan contracted by him and his spouse for the purchase of an apartment jointly owned by them.
The Supreme Court (“SC”) has heard the appeals of both the Mauritius Revenue Authority ("MRA") and Mr Dilloo (together referred to as “the Appellants”), by way of case stated against a decision of the Assessment Review Committee ("ARC").
On 4 March 2024, in the matter of Seacom Ltd v/s Director General, MRA, the Assessment Review Committee (ARC) ruled in favour of the Mauritius Revenue Authority (MRA) on whether interest incurred on loans entered into by Seacom which were used to grant interest free loans to related companies is deductible for corporate tax purposes under section 19 of Income Tax Act (ITA).
On 8 February 2024, the Supreme Court issued its judgment in favor of the Appellant with regards to whether a VAT ruling issued by the MRA, relating to whether a supply of goods or services is a taxable supply, amounts to a “decision”, for which the Appellant may lodge a written representation to the ARC.
On 18 December 2023, the Supreme Court of Mauritius issued its judgment by setting aside the preliminary objections raised by the MRA. The primary issue in the present case revolves around whether the MRA has satisfied the Judge in Chambers that the information requested meets the 'foreseeable relevance' standard or whether the applications are indeed a disguised means for the Indian Tax Authorities to lift the corporate veil of Aadhi Enterprises Private Limited ("Aadhi") and look into the affairs of its shareholders which are companies incorporated in Mauritius.
On 24 October 2023, the Assessment Review Committee (“ARC”) issued its ruling in favor of the MRA by denying the 80% exemption on interest income derived by the Applicant, on the grounds that the interest income did not arise from the Applicant’s core income generating activity.
