Won’t allow shell companies: Mauritius

Mauritius on Friday assured India that it will not allow shell companies to operate from its soil as the two countries plan to start next round of talks on revising the decades-old double taxation agreement later this month.

"We want investors from India who <g data-gr-id="25">come</g> to Mauritius to add substance to what they do. We don't want shell companies and we will refuse shell companies because they are of no use to us, no use to India," Mauritius Finance Minister Seetanah Lutchmeenaraidoo told reporters here.

"In fact we are doing in Mauritius what Prime Minister (Narendra) Modi is doing here. We are cleaning the house", he <g data-gr-id="22">said,</g> while assuring full cooperation with Indian authorities to put orders in the system.

The minister sought to dispel "the impression" of Mauritius being "infamous" in relation to the DTAC, saying there should be no doubt that Mauritius "is and has become a clean financial sector".

Negotiations to amend the Indo-Mauritius Double Taxation Avoidance Convention (DTAC) have been hanging fire for a long time amid India's apprehensions that it is being misused to route unaccounted money and evade taxes.

A Joint Working Group has been set up to find a mutually acceptable solution towards <g data-gr-id="21">revision</g> of the pact. About 10 meetings of the JWG have taken place so far.