A Fiscal Sea Change: Tracing the New Contours of the Mauritian Tax Landscape
In the realm of taxation, adaptability to change is not just a virtue, but a necessity. Mauritius is currently navigating through such a transformative wave, as articulated in the budget speech delivered by Dr The Honourable Renganaden Padayachy, Minister of Finance, Economic Planning and Development.
There has been no increase in personal income tax to the contentment of high-income earners who were baffled to see an increase in the solidarity levy rate from 5% to 25% last year. However, those expecting a reduction in this tax must have been quite disappointed since one may have anticipated that this tax would be merely temporary due to the COVID 19 crisis.
This budget speech was very much awaited as many lingered to see what the “Superintendent of Finances” had in store to revive a limping economy. There was a rampant fear of a further increase of taxes following the introduction of the solidarity levy of 25% in the preceding financial year. The Government introduced last year’s levy to increase tax revenue to cope with the impact of the pandemic.
The preparation of this year’s budget was very far from being an easy
task: prior to the COVID-19 wave, key economic sectors like
manufacturing, tourism, financial services were already showing
signs of frailty. There was already an urgent need to review long term
policies to safeguard the future of those pillars.
UK Upper Tribunal rules that mere influence by parent companies does not tantamount to ‘central management and control’
Date: July 04 2019
In a recent decision1 pronounced by the Upper Tribunal Tax and Chancery Chamber (‘UTT’) in United Kingdom (‘UK’), the UTT concluded that central management and control vest with the subsidiary even where the subsidiary was a special purpose vehicle incorporated pursuant to tax scheme devised by the parent company.
IT’S SURVIVAL OF THE MOST COMPLIANT
Date: June 10 2019
Just when we thought we made it, we realised that it is not yet over.
Last year the Government introduced ground-breaking measures which shook the fundamentals enshrined in our 30-year-old global business sector. Mauritius, a jurisdiction once marketed for its tax attractiveness, is now being maneuvered towards a service driven economy.