Operators in the global business sector had trouble hiding their irritation. “Some had a sleepless night yesterday,” said Assad Abdullatiff, president of the Association of Trust and Management Companies (ATMC). In question, a correspondence that the Prime Minister addressed to the European Union this February 4. Pravind Jugnauth responds to a letter received from the EU on 1 February. He ensures the Code of Conduct Group (Business Taxation): “Mauritius is committed to address the identified deficiencies” in the tax exemption scheme and specifies that the changes will be made by the end of 2019.
Operators in the global business sector had trouble hiding their irritation. “Some had a sleepless night yesterday,” said Assad Abdullatiff, president of the Association of Trust and Management Companies (ATMC). In question, a correspondence that the Prime Minister addressed to the European Union this February 4. Pravind Jugnauth responds to a letter received from the EU on 1 February. He ensures the Code of Conduct Group (Business Taxation): “Mauritius is committed to address the identified deficiencies” in the tax exemption scheme and specifies that the changes will be made by the end of 2019. The EU had given the Minister of Finance the opportunity to respond by February 15, but the government’s prompt response has left operators feeling sorry for the lack of consultation. They are afraid to see all the reforms undertaken since the 2018-2019 Budget fall apart. So again hovering all sorts of uncertainties about the future of the offshore sector in Mauritius. Threatening, suddenly, to scare investors who would knock on the doors of operators of global business in Mauritius.
An urgent meeting is requested on the night of February 7th. At the Ministry of Finance, a working group composed of ATMC, Global Finance Mauritius, the Mauritius Bankers’ Association, the Economic Development Board, the Mauritius Revenue Authority, the Attorney General’s Office and representatives of Finance and Financial Services met this February 8th from 2.30pm to 4pm. “There was more fear than bad,” reveals Assad Abdullatiff, relieved. The lack of communication and consultation before sending correspondence between the Ministry and the operators has cast doubt on the fact that the EU has found that all the Mauritian jurisdiction allows “harmful tax practices” and that all the framework will be changed again by the government. But, explains the president of the ATMC, evaluated on 5 different criteria, it is on the one of the substance that the financial center of Mauritius gets a “harmful” evaluation. Concerns raised about non-resident ring-fencing and targeting issues will be resolved without much difficulty, operators say. On the other hand, Mauritius will once again be “compliant” in terms of substance with some regulatory changes. “They are in discussion,” says Assad Abdullatif.
“We arrived more than pessimistic at this meeting. We come out with a little renewed optimism “, we hear from the operators. But for the ATMC, the moods of the operators are only secondary. “Optimism will come back only when the EU has confirmed that Mauritius is not on its blacklist” financial centers.
Source: <http://ionnews.mu/document-une-lettre-de-jugnauth-a-lue-fait-paniquer-les-operateurs-du-global-business-080219/?utm_campaign=shareaholic&utm_medium=facebook&utm_source=socialnetwork&fbclid=IwAR1mEzsgeAuGicfdSRHftJY5nctSJ-hfOogJGIiD_Hzky6WAaRZu7OxlkAA> Accessed 9th Feb 2019
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