Category: Round Tripping
MP CM’s nephew under fire for tax evasion
According to sources, the raids were conducted at Mr Nath’s nephew Ratul Puri’s company, Hindustan Powerprojects Pvt Ltd on April 7. New Delhi: The income tax department has detected tax evasion of more than Rs 1,350 crore during search and seizure operations conducted against Hindustan Powerprojects, a company owned by… – Continue reading
CBI unearths 393 shell companies used to divert Rs 2900 crore
NEW DELHI: A complex web of 393 shell companies used for allegedly diverting funds unscrupulously to the tune of Rs 2900 crore has been unearthed by the CBI during its probe into such cases over the last three years. CBI sources said the shell companies were allegedly being used by… – Continue reading
India notifies capital gains exemption norms for Mauritius investors
Private equity (PE) investors and venture capital (VC) funds from Mauritius will have to pay capital gains tax on investments into quasi-equity in India, under the revised tax treaty, unless the conversion of investments into equity is not finalised before 1 April 2017. The government has notified the revised double… – Continue reading
Mauritius pact: A laudable reform
Last month the government announced an amendment to the Double Tax Avoidance Agreement between India and Mauritius. The DTAA was signed between the two countries in August 1982 and notified in December 1983. For the past thirty-three years it has been a key factor affecting foreign investment flows into India…. – Continue reading
India-Mauritius tax treaty: An end and a new beginning
Recent news of India and Mauritius signing a Protocol to amend their 33 year old tax treaty caused seismic changes in the tax world. Though not completely unanticipated, the change is significant for foreign investors to go back to the drawing board and reassess their structures. The tax treaty between… – Continue reading
SEBI tightens rules on offshore derivatives
MUMBAI India’s capital market regulator on Thursday took steps to stop suspected illegal money flowing into the country by making issuers of securities known as offshore derivative instruments register their customers. The Securities and Exchange Board of India (SEBI) also tightened rules for transferring ownership of these offshore instruments to… – Continue reading
UAE investment in India may bypass Mauritius
The closure of a tax loophole could hit UAE firms planning to invest in India through Mauritius. The Indian government this week amended a long-standing treaty that helped foreign investors to avoid capital gains tax by routing their investments through Mauritius. Mauritius is the biggest source of foreign direct investment… – Continue reading
Investors making money must pay taxes, no fear of FDI fall: Arun Jaitley
India had in August 1982 signed the treaty with Mauritius to eliminate double taxation of income and capital gains to encourage mutual trade and investment. Investors must pay taxes on money they earn in India and the domestic economy is now strong enough to depend on any “tax-incentivised route” to… – Continue reading
The IBFM tax regime: A non-starter
Despite best intentions of the government, there have been little or no takers for India-based fund managers In 2015, the Indian government took a commendable step by introducing a new provision in the Income-tax Act, 1961 (i.e. section 9A), to promote India as a fund manager jurisdiction, and to encourage… – Continue reading
Govt negotiating issues relating to DTAA with Mauritius
Outstanding issues relating to the existing Double Taxation Avoidance Agreement (DTAA) are under negotiation between India and Mauritius through the mechanism of Joint Working Group (JWG), Parliament was informed today. “India has proposed changes in the existing DTAA to address concerns relating to treaty abuse, around tripping of funds, double… – Continue reading
Full faith in India on tax treaty revision: Mauritius
NEW DELHI: Dismissing apprehensions of Mauritius being used to route black money as “misconception”, its Prime Minister Anerood Jugnauth has termed the issue as an aberration in the “very special” ties with India and hoped that revision of their tax treaty won’t harm its interests. Stating that Prime Minister Narendra… – Continue reading
No revisions in main provisions of DTAA with India: Mauritius PM
Prime Minister of Mauritius, Anerood Jugnauth, on Tuesday said there will be no revisions to the main provisions of its Double Tax Avoidance Agreement (DTAA) with India as both countries are happy with the existing provisions of the tax treaty. “This treaty between our two countries has been there for… – Continue reading
Mauritius promises India clean and trusted jurisdiction
NEW DELHI: Often accused of being an offshore financial centre misused for round tripping, Mauritius today assured India that it will “walk the extra mile” to ensure that its reputations as clean and trusted jurisdiction is upheld at all costs. “We will put in all the necessary efforts and walk… – Continue reading
India fails to get to root of black money problem
The Indian government’s initial unsuccessful efforts to unearth billions of dollars of undeclared foreign assets – some believed to be hidden in Swiss banks – highlight the complexity of vehicles used to move money illicitly. Earlier in the year, a new law on black money came into effect. It included… – Continue reading
Sebi probing UBS on round-tripping : Companies in mining, liquor, and real estate also being investigated, it appears, with ED asked to have a look
In the midst of the Special Investigative Team (SIT) on undisclosed money flagging concern on participatory notes (p-notes), the Securities and Exchange Board of India (Sebi) says it is probing a case of alleged round tripping. The term refers to transactions between companies that bolster their revenue but, in the… – Continue reading
British Virgin Islands: Re-Situating The BVI: Offshoreart.Co, International Finance And Contemporary Art
There is an intimate relationship between art and finance. In the public sphere, the state plays a predominant role in funding and maintaining national art collections. The private sphere is dominated by private patronage. For example, artists in medieval Italy were funded by wealthy families such as the Medici, and… – Continue reading
P-note crackdown may weigh heavy on markets : This route accounts for Rs 2.75 lakh crore of FPI holdings
The Supreme Court-appointed special investigative team’s (SIT’s) recommendation of stricter norms for participatory notes (P-notes), to check the flow of unaccounted money, is likely to be viewed negatively by the market. The SIT had last week suggested the Securities and Exchange Board of India (Sebi) put in place regulations to… – Continue reading
Negotiations on DTAA between India and Mauritius in advanced stages: Revenue Secretary
Finance Ministry has informed that the negotiations on the double taxation avoidance agreement (DTAA) between India and Mauritius are in advanced stage and the pact would be revised soon. Revenue Secretary Shaktikanta Das has said that “DTAA treaty (with Mauritius) is in very advanced stage of negotiation. It is progressing… – Continue reading
Will sort out India-Mauritius DTAA woes soon: Mauritius FM
The General Anti-Avoidance Rules (GAAR) are of no use to India, and may work against the country by hurting foreign inflows is the word coming in from Vishnu Lutchmeenaraidoo, the Finance Minister of Mauritius, reports Money Control. He told CNBC-TV18 that lower taxation is the need of the hour for… – Continue reading
Mauritius assures India will not allow shell companies
Lutchmeenaraidoo, who met foreign minister Sushma Swaraj, played down the issue of misuse of the India- Mauritius Double Taxation Avoidance Convention (DTAC). Mauritius will make it difficult for shell companies using a liberal and controversial bilateral tax treaty with New Delhi to evade taxes in India, said the island nation’s… – Continue reading
The Cost of Business in Singapore Compared With Hong Kong, China
Part Seven in our series comparing ASEAN business costs with China Singapore is the de facto financial and services hub for ASEAN, and as a city state with such a remit it is more pertinent to compare the dynamics of Singapore with Hong Kong rather than China as a whole…. – Continue reading
Round Tripping: The Bane of Indian Tax Treaties
Mauritius and Singapore are both examples of countries with Double Taxation Avoidance Agreements (DTAAs) with India, meaning dividends from corporations that are paid out to shareholders are not taxed further, having already been taxed at the corporate level. This legislation has meant that such countries have been used to “round-trip”… – Continue reading
Narendra Modi: India, Mauritius will work to avoid tax treaty abuse
Port Louis, March 12 : Prime Minister Narendra Modi on Thursday assured that India would work with Mauritius to avoid the “abuse” of the double taxation avoidance agreement and added that the destinies of both nations are “linked by the currents of the Indian Ocean”. Addressing the National Parliament of… – Continue reading
Hong Kong’s 2015/16 budget offers hope and risk for tax competiveness
Hong Kong Financial Secretary, John Tsang delivered his eighth budget speech on 25 February 2015. Key Points: >Expansion of tax exemption for certain offshore investment funds >Tax concession for treasury centre activities on the way >Full steam ahead with implementation of OECD automatic exchange of tax information standard >Addressing Hong… – Continue reading
Tax evasion: Govt moves to make laws stricter
ISLAMABAD: The government has prepared draft bills to introduce amendments to four relevant laws to declare tax evasion as an offence related to money laundering, aimed at curbing misuse of foreign investment and remittance schemes. The step is being taken to meet a condition of the International Monetary Fund (IMF) that… – Continue reading
Mauritius Yet to Agree on Tax Treaty Revision: Finance Minister
New Delhi: The government on Tuesday said Mauritius is yet to agree to certain proposals to the long pending revision of bilateral tax treaty. “India has made certain proposals for revision of DTAC (Double Taxation Avoidance Convention) to end round tripping and other aspects. Mauritius is yet to agree to… – Continue reading
New Leak Reveals Luxembourg Tax Deals for Disney, Koch Brothers Empire
A new leak of confidential documents expands the list of big companies seeking secret tax deals in Luxembourg, exposing tax-saving maneuvers by American entertainment icon The Walt Disney Co., politically controversial Koch Industries Inc. and 33 other companies. Disney and Koch Industries, a U.S.-based energy and chemical conglomerate, both created… – Continue reading
Sebi tightens screws on dubious inflows from loosely regulated, offshore entities
MUMBAI: As the market touches a new high, Sebi is clamping down on dubious inflows from loosely regulated, offshore entities, particularly those located in the Gulf. According to a Sebi communique on Monday evening, foreign funds investing on behalf of unknown investors and through opaque structures will now find it… – Continue reading
Hiding places where Indian black money is concealed
Aparajita Basak, the manager, of research analytics, innovation and knowledge centre at Frost & Sullivan, talks about the use of tax havens across the world for Indian black money. What kind of role do tax havens play in black money in terms of Indian companies and individuals? Across the world,… – Continue reading
Black money: Narendra Modi’s government turns to Cyprus to act against round tripping
NEW DELHI: After reaching a significant breakthrough in information exchange on bank accounts with Switzerland, the Narendra Modi government has now turned the heat on European tax haven Cyprus as part of its fight against black money. The government wants to drop a provision in the tax treaty between the… – Continue reading
India assures Mauritius on bilateral tax treaty
India today told Mauritius that it will not take any decisions that will “adversely impact” bilateral relations while reassuring the country that amendments to the bilateral tax treaty would be made only after considering the legitimate interests of both sides. This was conveyed by External Affairs Minister Sushma Swaraj during… – Continue reading
Foreign Minister Sushma Swaraj to visit Mauritius, Maldives over the weekend
NEW DELHI: Ahead of External Affairs Minister Sushma Swaraj’s three-day visit to Mauritius from tomorrow, India today said amendments to the bilateral tax treaty with the island nation would be made only after taking into account the “legitimate interests” of both sides. Swaraj will also be visiting Male and hold… – Continue reading
Fresh affidavit on black money in SC today: What the debate is all about
An informed, mature and realistic debate on black money is too much to ask for in a country where the issue attracts intense, almost emotional public reaction. It does not help when political games and systemic problems in the economy that aid tax evasion and stashing of illicit money in… – Continue reading
Dirty money: 19 UK firms alleged ‘complicit’ in $20bn laundering scam
Some 19 British firms are at the center of an investigation into in a mammoth global money-laundering operation. The scheme was allegedly contrived to make $20bn (£12.5bn) worth of ill-gotten gains appear legitimate. The illicit funds are thought to have originated from criminal gangs and corrupt officials across the globe,… – Continue reading
Kenya: NGO Moves to Court Over Double-Taxation Agreement
Tax Justice Network Africa, which campaigns against harmful tax policies that favour the wealthy and perpetuate inequality, has moved to the High Court to stop a double-taxation treaty between Kenya and Mauritius. Mauritius is a popular tax haven for companies with multinational operations, tilting scales against countries that sign bilateral… – Continue reading
Lobby sues Treasury CS over ‘illegal’ tax deal with Mauritius
A tax civil society has sued National Treasury Secretary Henry Rotich over an ‘illegal’ agreement signed with Mauritius, in a major litigation that could affect thousands of companies operating in Kenya. The suit filed at the High Court by Tax Justice Network-Africa (TJN-A) demands that Rotich withdraws a taxation treaty… – Continue reading
Looks like Cheryl Womack may be pleading guilty in her criminal case
Mission Hills businesswoman Cheryl Womack is scheduled to appear in federal court in Kansas City on November 12 for a change of plea hearing in her criminal case. Womack had earlier entered a not guilty plea to charges of avoiding income taxes and lying to investigators. (Update, 9:03 p.m) It’s… – Continue reading
Government seeks banking information on 97 cases from Mauritius in one year
PORT LOUIS: Mauritius has provided details on majority of information requests received from Indian authorities in the last one year, according to a government official. India has concerns that Mauritius, which is one of the top sources of foreign direct investments into the country, is being used for round-tripping of… – Continue reading
Mauritius, India in talks to address tax treaty concerns: FSC
PORT LOUIS: Dispelling ‘misperceptions’ that Mauritius is a tax haven, its financial sector regulator has said the island nation is in discussions with India to address concerns and make changes to the bilateral tax treaty. Emphasising that the country provides stability and predictability for investors, Mauritius’s Financial Services Commission (FSC) sought to… – Continue reading
Treasury’s Inversion Rules Create Uncertain Environment For US Multinational Companies
The Obama administration’s new rules intended to stem the tide of inversions, in which U.S. companies reincorporate abroad to dodge taxes at home, won’t be completely effective because they don’t address the high corporate tax rate in the U.S. that compels such behavior, say tax experts and analysts. The rules announced… – Continue reading
Congressman Introduces Legislation to Stop Tax Inversions
Rep. Mark Pocan, D-Wis., has introduced three pieces of legislation to close tax breaks that enable U.S. multinational corporations to use so-called “inversions” in which they merge with a foreign company and move their tax domicile abroad to a low-tax country to reduce corporate taxes. Corporate inversions are used by… – Continue reading
U.S. tax evasion and money-laundering sting nabs Canadians
A contingent of so-called “corrupt clients” from Canada have been caught in the net of a massive fraud investigation by the FBI and the U.S. Attorney, a source close to the investigation told CBC. CBC News reported Wednesday that two Canadians, along with four others, were indicted in the U.S…. – Continue reading
Schumer to release offshore tax bill
Sen. Charles Schumer (D-N.Y.) released legislation Wednesday seeking to roll back the tax benefits for companies that reincorporate abroad. Schumer’s bill takes aim at a maneuver known as earnings stripping, a process by which U.S. subsidiaries can take tax deductions on interest stemming from loans from a foreign parent. The… – Continue reading
Mauritius PM says will allay India’s concerns on roundtripping of funds
Navin Ramgoolam discussed issue of long-pending treaty re-negotiation with his Indian counterpart Narendra Modi in their bilateral meeting today Mauritus on Tuesday said it was determined to allay India’s fears on round tripping of funds, by incorporating adequate safeguards in the India-Mauritius tax treaty. The island nation said it had… – Continue reading
Amazon Facing Fresh UK Tax Avoidance Row
The internet retail giant Amazon is facing fresh claims of tax avoidance after its latest accounts showed it routed more than £11 billion through its Luxembourg-based subsidiary in 2013 – yet paid only £4 million in UK corporation tax last year. Amazon trades through the Luxembourg subsidiary, Amazon EU SARL,… – Continue reading
Sending Money On An Overseas Round Trip To Avoid Taxes
Some investors avoid paying taxes in a move called round-tripping — sending money offshore, then investing it in U.S. stocks or bonds. A study estimates it costs the U.S. billions in lost revenues. Recently, MIT professor Michelle Hanlon and two colleagues set out to find out all they could about… – Continue reading
For Those With Offshore Bank Accounts, Today Is Just One More Tax Holiday
It may be tax day for most Americans, but it’s still a tax holiday for those who use offshore accounts to avoid paying levies on as much as $109 billion annually back to Uncle Sam, according to Quartz. Many of the monied types keep their dollars in offshore accounts specifically to… – Continue reading
How widespread is tax evasion?
In round-tripping, U.S. investors move funds to offshore tax havens, then invest in U.S. equity and debt markets with these “foreign” funds. In essence, the U.S. investors are disguising themselves as foreign investors, who are not subject to the same tax rates on capital gains and interest income. The money… – Continue reading
A Thin Dividing Line: An eye-opener on Indian losses due to tax treaties
A documentary on the working of tax havens in the context of the double taxation avoidance treaty between India and Mauritius reveals that while India may have received foreign investments due to the treaty, tax losses on its account run to the tune of tens of thousands of crores. Is it worth… – Continue reading
