Just as the case of tax evasion by large companies, which started two years ago due to Panama’s paper leak, has revealed a series of new documents leaked from the Mauritian law firm, how companies are capitalized in India and other countries Taxes were being levied on the profits.

The way to work – which can be according to the book – flourishing on the mysterious financial laws of Mauritius, which is designed to facilitate change in a country for foreign firms.

large amounts of “tax treaties” to other countries With the country enjoyed and the desire to allow foreign companies with some companies and not to Mauritius to stop their headquarters and shell companies in the island state.

What is Mauritius Leek

Based on the cache of more than 200,000 confidential records from a foreign law firm located in Bermuda, the Mauritian office of Connor Dell and Burman.

Which was reached by the Union of International Journalists, Mauritius explains how the former French colony was in a thriving financial center Changed At least on the cost of its very poor African neighbors and other developing countries including India.

There is a long list of financial institutions and individuals in the documents, who have tried to take advantage of tax rules in Mauritius while avoiding taxes in Egypt, Mozambique, Uganda and India among other countries.

The names of international companies such as Wal-Mart, Whirlpool, Apollo, Jindal Steels, Religare and others are in the record.

Connors Del and Burman: Company is at the center of dispute

The law firm, which includes many Fortune 500 companies as clients, promotes corporate tax concerns and protects the private property. Mauritius is useful in documents accessed by IFJ Investigation guides for anyone considering a plan to avoid tax using laws.

According to The Indian Express, the law firm claims to have opened the GBC1 (tax business company in Mauritius, tax resident in Mauritius) within 10 working days for the annual license fee of $ 1,750.

The three founders – James Reginald Conders, Nicholas Baird Dale and James Eugène Burman – all were horsemen and were in public in Bermuda.

The company operates offices worldwide including Cayman Islands, Hong Kong, London and the British Virgin Islands. The company is widely credited with the establishment of the world’s first offshore company.

According to the ICIJ report, in the history of Connors published in 1998, an attorney was quoted describing a specific customer, who “likes to spend $ 10,000 on legal bills instead of paying $ 5,000 to Uncle Sam is.”

Why has Mauritius preferred tax haven

The investigation of ICIJ found that the island state, which sells itself as a “gateway” for developing countries, has two main points of sale: tax rates and a “tax treaty” with 46 countries, Most of which are poor.

These tax treaties, the reports state are highly unbalanced and are favored by most companies and Mauritius, who make conversions by hosting more and more of these companies.

As a resident company in Mauritius, many Western companies benefit from a very low tax rate in the country – up to 3 percent – and Mauritius receives a special legal status from the government, which allows them to make tax between Mauritius and other countries.

Treaties benefit

The process of turning Mauritius into a haven for foreign institutions, most of which established a base in the country for “tax reasons”, started in the 1990s.

The then Finance Minister Ram Sethanin noted that Luxembourg, Switzerland, Hong Kong and other countries were more ambiguous and working in low-income gateways for nearby rich countries had increased in financial powers.

Mauritius should do the same, to present himself as a stable and corruption-free bridge for Africa and other less developed areas.

He asked Mauritius Parliament to present a bill in 1992, “It is likely to explore new routes and find new markets. This would make the island’s first shell companies possible, and some companies have zero tax on profits and capital gains Will be allowed to pay. ”

An opposition member said objecting that the bill will at least create the impression that Mauritius is benefitting at the expense of its poor neighbors, ICIJ has said.

But the bill laid the foundation of several domestic laws and tax treaties, pushed by Western lobbyists, signed by Mauritius neighboring countries in hopes of attracting foreign investment to create jobs, even many tax projects Also on the tax tax used to financing

What are the tax treaties?

From the 1920s, “double taxation agreements” or “tax treaties” were adopted as a means of protecting the companies operating with international operations twice from taxation with the same treatment.

However, over time, countries started retreating treaties which favor the very rich countries.

LEAVE A REPLY

Please enter your comment!
Please enter your name here