Sharing information on black money with India: Mauritius

New Delhi, Feb 21 (PTI) Mauritius has provided Indian
authorities with banking information and other financial
details on more than 90 cases of suspected tax evasion and
financial malpractice over the past three years.
Asserting that it has put in place robust measures to
help India track black money, the Mauritian Finance Ministry
told PTI that the information sought by Indian authorities has
been duly provided as per international norms.
While acknowledging that some unscrupulous persons might
still beat the systems in place to check flows of black money,
the Mauritian Finance Ministry said it has taken additional
measures with respect to India.
"... With India, we have developed a mechanism to be in
close consultation with the Indian authorities to deal with
any issues that may arise. This includes the posting of an
officer from the Central Board of Direct Taxes at the Indian
High Commission in Mauritius," the ministry said.
Mauritius has often been suspected to be a facilitator of
black money round-tripping or routing illicit wealth stashed
abroad by Indians back into the country through their banking
and financial institutions.
In a detailed reply to queries on the black money issue,
Mauritius' Ministry of Finance and Economic Development said
the tax treaty between the two countries provides for sharing
of banking information.
"Over the last three years, we have received around 64
requests for bank information from India. The requested
information was duly submitted to India," the ministry said.
In addition, the Mauritius Financial Services Commission
has received 17 requests for information from India's market
regulator, Sebi, since September, 2009.
Detailing the requests from India on the black money
issue, the ministry further said: "Since late 2007 to date,
the FIU-India has made 10 requests for information from the
Mauritius FIU."
FIU-India (Financial Intelligence Unit of India) is the
nodal agency responsible for receiving, processing, analysing
and disseminating information relating to suspect financial
transactions to enforcement agencies and foreign FIUs.
The Mauritius FIU has also made 15 information requests
from its Indian counterpart.
"Mauritius' laws provide the competent authority with
broad access powers to information relevant for exchange
purposes, including access to bank information," the ministry
said.
"Furthermore, it can obtain the required information from
any person who is in possession or control of such
information," it added.
There are agreements in place for exchange of information
on entities indulging in tax evasion and tax frauds, but
concerns have been raised over certain lapses.
As per the existing practice, a bank in Mauritius can
inform its customer if a request has been made by India for
information about that person on suspicion of wrong-doing and
such disclosure to the concerned entity can hamper the probe.
Some lapses have also been been pointed out by OECD, the
global agency working on implementation of international
standards on taxation and other matters.
An OECD review report last month said that the two
countries have a pact in place for automatic exchange of
information on a routine basis, but this is not carried out in
practice.
Mauritius has not exchanged information spontaneously
either, over the last three years, the OECD said, while adding
that the maximum number of information exchange requests
received by Mauritius were from India.