Port Louis suspends six forex companies as talks resume on the tax treaty that allows Indian companies to launder illicit funds
India’s Finance Minister Pranab Mukherjee is sending a
team of senior officials to resume the difficult negotiations with
Mauritius to resolve the lingering stand-off over the 1983 Double Tax
Avoidance Agreement. Under the DTAA, capital gains on shares in Indian companies bought in Mauritius are not liable for tax. That has
encouraged a massive flow of illicit funds from India to Mauritius,
which is then re-invested in India – with no tax paid on the profits....
(This article contains approximately 1144 words)
