Economic Planning and Taxation Policies in Mauritius

The assignment is designed to assess students' understanding of economic planning and taxation policies in Mauritius. It consists of multiple-choice questions that cover various topics such as tax haven status, DTA agreements, influences of local citizens and corporations on economic planning, and the role of government in monetary systems. The assignment also includes a section for students to provide their opinion on whether Mauritius is considered a tax haven and which factors are affecting financial crackdown in the country. The document provides a detailed analysis of the answers and requires students to tick where appropriate based on their knowledge.

A Critical Assessment of
Mauritius as a Tax Heaven

TABLE OF CONTENTS
ACKNOWLEDGEMENT...............................................................................................................2
Declaration of Originality................................................................................................................3
ABSTRACT.....................................................................................................................................4
CHAPTER 1: INTRODUCTION....................................................................................................1
Overview.....................................................................................................................................1
Background.................................................................................................................................1
Problem statement.......................................................................................................................2
Rationale behind study................................................................................................................2
Aim and Objectives.....................................................................................................................3
Research Questions.....................................................................................................................3
Importance of study....................................................................................................................3
Research structure.......................................................................................................................4
Conclusion..................................................................................................................................5
CHAPTER 2: LITERATURE REVIEW.........................................................................................6
2.1 Introduction to literature review............................................................................................6
2.2 Government plans and policies in economic control............................................................6
2.3 Current requirement of local citizens and organisation in Mauritius..................................12
2.4 Recent variations in monetary, economic and taxation policies.........................................13
2.5 Suggestions for reforms and taxation controlling techniques to government.....................15
2.6 Limitation of literature review............................................................................................15
2.7 Conclusion..........................................................................................................................16
CHAPTER 3: RESEARCH MERTHODOLOGY.........................................................................17
Introduction...............................................................................................................................17
Research Philosophy.................................................................................................................17
Research Technique..................................................................................................................17
Data collection..........................................................................................................................18
Data analysis.............................................................................................................................19
Ethical consideration.................................................................................................................19
Reliability and Validity.............................................................................................................20
Research Limitation..................................................................................................................20
CHAPTER 4: DATA ANALYSIS................................................................................................21
4.1 Introduction.........................................................................................................................21
4.2 Results.................................................................................................................................21
4.3 Governmental plans and policies in economic control at Mauritius...................................21
4.4 DTA agreements of Mauritius with several nations...........................................................23
4.5 Requirement of local citizens and corporate industries......................................................25
4.6 Monetary system in Mauritius............................................................................................25
4.7 Economical and taxation policies in Mauritius...................................................................26
4.8 Reforms which are needed to be made by government......................................................27
Conclusion................................................................................................................................28
CHAPTER 5: RECOMMENDATION AND CONCLUSION.....................................................29
Introduction...............................................................................................................................29
Conclusion................................................................................................................................29
Recommendations.....................................................................................................................29
Suggestion for the next research...............................................................................................30

REFERENCES..............................................................................................................................31
APPENDIX....................................................................................................................................35

ACKNOWLEDGEMENT
This research study has enhanced my level of research skills and learning ability. I have learnt
various techniques and operational tasks which has improvement loyalty and commitment
towards analyzing the best of information through this research.
Firstly, I would like to thank all my friends and family members in bringing me the
support for contributing efforts in making adequate study over the facts. My tutor___ had given
me the opportunity to perform the research and guided me in favorable way for attaining success.
At last, I would like to thank to all those individuals who have presented their views and
supported me in collecting all relevant and appropriate information base on research issues.

Declaration of Originality
I hereby confirmed that, the below listed thesis and collection of information has been made by
myself. I have completed all the research work such as data collection, research methodology
and preparing literature with authentic sources. The whole process has been under consideration
or determination of by supervisors with respect of using reliable sources and presenting correct
information. Further, I have committed none of plagiarised activities while preparing the data
base. Similarly, all the methods which have been used in research has been documented by
myself in this report. There is no use of any manipulated sources of information which lead
research on wrong direction. Considering all the ethical and legal requirements I have prepared
this data base.

ABSTRACT
This study has been based on analyzing the economical, monetary and taxation environment
in Mauritius. There has been determination of all the laws and regulation which plays the main
role in designing and developing policies in Mauritius. Various DTA agreements have been
addressed as per having better operational control and management of operations. This report
will be based on analyzing various issues and operations. India has been suffering from Fiscal
deficit as economic stability is comparatively poor than Mauritius. Lending funds to nation as
well as making higher foreign investment in that particular country will be challenging for
Mauritius in making suitable balance in operations. There have been various economic benefits
which have been obtained by other countries in making inappropriate determination of operation.
Taxation laws and regulations must be determined, which has huge variations and differentiation
in various nations. The economic policies and governmental plans must be analysed in Mauritius
as per appropriate changes to be made in each business operation. Mauritius has recently had
higher gains, strong growth which indicates its high ere GDP rates. It was 3.46% in 2015 while
in present it is 73.4% rise. Thus, the rapid growth in GDP and the economic level of this nation is
basically due to liberal and open economic policies. It encourages and welcome foreign countries
in making investments at large sectors in economy. management of the financial, revenue and
monetary system in Mauritius it is necessary to have satisfactory management of each operations
that will be adequate and helpful in making better execution of each operations. Developing the
various legal aspects in the country mainly relevant with the social progress, good governance,
economic development etc.

CHAPTER 1: INTRODUCTION
Overview
Mauritius is known as taxation bliss for various other nations. It influences various Double
Tax Agreement (DTA) among Mauritius and other nations. It is done on the basis of revenue
earned by an individual or corporation on the basis of dividends, interest, capital gains and
royalties. These are the conventions which have been signed by China, India, Vienna and UN for
appropriate trade practices with the influences of proper legislations. There has been various
remedies and taxation exemption which were being awarded to the nations which are engaged in
such contractual agreements. Revenue gathered by a person or business will not being double
taxed and have dual legislation on it has effective adequacy on the operations.
This chapter will bring a satisfactory suggestion based on making qualitative
improvement in various taxation issues and regulations imposed by government of Mauritius that
will be helpful for making proper changes in operational control and business management. This
study will be take into account various rulings of OECD for taxation system as well as for better
BEPS legislation for rules. There will be analysis on the internal plans and policies for balancing
the economic stability which has been regulated and administered by the Bank of Mauritius,
Central banks etc.
Background
Mauritius has been treated as tax haven in world with motive of having satisfactory
taxation rates. Mauritius has effective economic strength which is known as tax haven in the
world. Liberal economic regime can result in apparent paradox as the population of this tiny
speck is around 1.2 million but economy wise, it one-hundredth to India. Therefore, in relation
with the same, it can be said that it has the accurate GDP rate as well as per capita income. It is
the largest exporter of capital to Indian economy. This is most suitable source for India in
relation with generating the adequate amount of funds for operations and it funnels investors in
making foreign direct investment facilities in India.
Mauritius gained benefits due to quasi tax system, which have facilitated the financial
regime that is competent and various characteristics impact and uplift overall operational
requirements of entity. As per considering various rules and regulations which were being
enacted by Mauritian government which relates with making taxation process smooth and
1

soothing for residentials and for the foreign residents. There has been various DTA agreements
which were held among nations that are engaged in trade practices with Mauritius. This
contractual agreement held between Mauritius, China and India will be discussed in the
following study. Impacts of rules and regulation imposed by Mauritius Revenue Authority
(MRA) has effective control over monetary system, economic environment and the currency
exchange rates in country.
Problem statement
In the recent years Mauritius has become the trading hub for many countries. It is due to
lower rates and charges imposed by the government ion the exports and imports. Considering
such issues which has have affected national economy of Mauritius such as huge manipulation of
money. This nation has been criticised and it is always in the controversial news because it is the
largest capital lender to India which is affecting national economy (Morabito, Carosin and
Vandenbroeck, 2017). India has been suffering from Fiscal deficit as economic stability is
comparatively poor than Mauritius.
Lending funds to nation as well as making higher foreign investment in that particular
country will be challenging for Mauritius. Precisely, there has been influences of various laws,
regulation and acts which in turn has have affected the efficiency of the market as well as
currency rates. Mauritius has been lending various grants and taxable benefits to the several
nation including India, China, Vienna and UN which has become challenging inn balancing the
financial crack down.
Rationale behind study
Analysing reasons behind the research study is that it will enhance information and
knowledge regarding taxation policies, schemes and recent governmental changes in operations
in Mauritius. Determination of governmental regulation plans in improving the tax implications
in trade practices as well as income generated by individuals as per having better operational
gains (Beebeejaun, 2018).
Moreover, scholars will be beneficial in determining the legislative operations performed
by Mauritian government in context with protecting the nation from financial crackdowns.
Controlling monetary system as well as economical viabilities of the firm which will bring

balances in the operations. Concerning impacts of taxation reforms in the country which have
affected economy as well as trade practices. Managing the firm with appropriate determination
of all the issues and activities will be better in evaluating the governmental plans and policies.
Aim and Objectives
Aim: “To identify laws and regulations in Mauritius taxation environment and impacts over
other nation”
Objectives:
 To analyse the governmental plans and policies in economic control
 To demonstrate current requirement of local citizens and organisation in Mauritius
 To identify the recent variations in monetary, economical and taxation plan on nation
 To suggest the appropriate changes and variations which are needed to be adopted by
government for controlling taxation
Research Questions
 What are the legal terms and issues which Mauritian government must consider for
controlling financial breakdowns?
 What are the reasons behind Mauritius becoming tax bliss to other nation?
 What are the major taxation legislations, legal authorities and governmental plans for
controlling economic environment in Mauritius?
 How are DTA agreements be effective in taxational planning and executing economical
practices between Mauritius and contracting nations?
Importance of study
This study will be beneficial in enhancing the learning and knowledge of scholars with
considering Mauritian legislations, laws, rule and acts. The framework of OECD with context of
various convention based on DTA agreement will be analysed. It consists of contractual
agreement that have been signed by various nations with Mauritius for effective taxation
policies. Implementing various plans and policies which were being imposed by banks such as
Bank of Mauritius (BOM) and Central banks. These have influences in making monetary and
economic planning which will be appropriate for effective environmental development.

Emphasising on the operational framework and activities of legislative authorities listed
in Mauritius for bringing suitable execution on the duties and activities performed by entities and
individual with the context of retaining favourable amount of earning. Analysing the charges and
legislation levied on the income generated by them through various sources will be addressed
and analysed by the scholars. This research project will bring benefits in making adequate
examination over obstacles and issues.
Research structure
Chapter 1: Introduction
This chapter consists of all the brief details relevant with research aim, objectives and
rationale of study (Nel, 2017). This will provide a proper framework for the study, that in turn
guides the scholar in analysing satisfactory reasons behind all research issues. It will also bring
an overview to Mauritius taxation law and regulation, which will be adequate in making control
over each operation. This chapter is an outlook for the whole report and also, it describes areas
which were going to be studied in study. Researchers will be helpful in determining effective
information and details relevant with the facts.
Chapter 2: Literature review
This chapter will be based on various arguments and debated that have been presented by
the researchers with highlighting the literature on issues. Taxation environment of Mauritius will
be analysed as per having determination of all issues and operations (Kotha, 2017). Debates have
been based on current issues and recent requirements of the business in making determination of
operations practices. Discussion will be based on various reforms and the changes which are
needed to be made in taxation planning of government. This chapter is comprised of all
information based on approaches, theories and models which highlight lights on all issues and
activities. It Influences opinion of various authors and philosophers about research issues, which
will be discussed and administered to have generation of information.
Chapter 3: Research methodology
This chapter consists of information regarding methods of study to be followed by
scholars. It will bring them a framework in addressing issues as well as developing the best
examination in addressing issues. To analyse environmental wants and needs, there will be
determination of all issues through effective methodology to be used in the considerations (Avi-
Yonah and Mazzoni, 2017). There can be influences of various elements like philosophy,

approach, design and techniques to conduct research such as primary and secondary data
analysis.
Chapter 4: Data analysis
This section of this research project consists of all outcomes that have been derived
through conducting research in market. It will be helpful and adequate as per making better
analysis of the issues (Biagi, Brandano and Pulina, 2017). It suggests solutions that will be
awarded to the government in making suitable decisions on issues. Researchers must have
effective judgement and solution to be given for overcoming with research issues. The Analysing
facts will be adequate in bringing concrete solutions to issues. Information is always helpful in
developing new theories and approaches as well as suggesting reforms in the taxation planning
and operational control.
Chapter 5: Recommendations and conclusion
On the basis of research outcomes and various findings held in analysing problems, the
researchers will draft suitable recommendations to governmental agencies. They analyse and
decide various (Gunputh, Jha and Pudaruth, 2017). Suggestions will be based on making
qualitative improvements in various taxations issues and regulations that will be imposed by the
government in making relevant changes in operational control and business management.
Suggestions will comprise of bringing operational reforms in the taxation policies. It will be
analysed here that Mauritius will have better control on all operations and practices.
Conclusion
The above chapter concluded that there had been huge variations in the operational
practices as well as determination of various processes, which was performed by researchers.
various techniques and methods were Indicated that has been discussed in the above report. This
structure of research report had also been discussed and analysed by scholars for developing
better understanding in the entire study.

CHAPTER 2: LITERATURE REVIEW
2.1 Introduction to literature review
In the present chapter, there have been debates or discussion based on opinion of various
authors relevant with taxation policies and changes in Mauritius. It consists of all relevant
theories and methods which will be useful in resolving the research issues. Considering recent
economic changes, Mauritius revenue authority (MRA) is developing policies relevant with
various DTA agreements. These are agreements which have been developed by the Mauritius
government in relation with soothing the trade practices among the nations. In this chapter DTA
agreement has been made between Mauritius, India and China will be discussed and analyzed.
Mauritius as tax heaven:
As per the views of Meredith and et.al., (2018), due to lower are of charges made on the
imp-ort and export duties as well as various relevant taxes in Mauritius which has been
beneficial for other nation in context with enjoying the transactional activities. Thus, it has
positively impacted the rise in FDI rates in Mauritius as well as enhances the productivity.
Taxable benefits have lifted the GDP level in country which has direct relation with the small
and medium size enterprises as they have various international investors in making plans and
operational control in various activities. Kao and et.al., (2016) said that, to prevent Mauritius
from impacts of financial crisis and issues which is required to have effective balance and
ascertainment of all the requirements. Concerning the facts that Mauritius is being operating
various incentives to the offshore investors which are including in the open economy, favourable
tax laws as well as modern banking system.
2.2 Government plans and policies in economic control
According to Morabito, Carosin and Vandenbroeck, (2017), as per analyzing internal
operations in country there has been huge variations in policies and administration of legal
activities. Mauritius has recently had higher gains as well as strong growth which indicates its
high ere GDP rates. It was 3.46% in 2015 while at present it is 73.4% rise. Thus, the rapid
growth in GDP and the economic level of this nation is basically due to liberal and open
economic policies. It encourages and welcomes foreign countries in making investments in large
sectors in economy. There has been rise in the industrial and auricularly sectors which have
6

higher investment and growth in revenue around 22% and 4.5%. Considering the rank of
Mauritius in the World Bank which is 32nd as it is one of emerging economy which have rapid
growth in the GDP and the currency valuation. Nel, (2017) stated that, main source of revenue in
Mauritius is basically its tourism sector which has uplifted economy in most positive manner.
The foreign investors are basically approached towards analyzing same rights to the domestic
investors and further facilitative investments in Mauritius.
Frankema, (2011) acknowledged that, Government in Mauritius or any other nations is
approached towards bringing the stability in social, political and economic balance in
environment. Economical development is the prime requirement of legal authorities in decision
making and analyzing needs of society. Focus is also payable on improving employment level in
the country. Improving currency value, exchange rates as well as various operational variations
in the activities. Economical planning and operational variations will be based on making
effective planning which will regulate and develop the financial sectors in country. Betchoo,
(2018) said that considering legal and political system in Mauritius on which it has determined
that it comes under British Commonwealth. Therefore, national government is made up of
council of ministers which are appointed and headed by prime minister. In accordance with the
taxation benefits in Mauritius there are various financial regulatory which are needed to be
addressed by government.
Gandhi and et.al., (2016) analyzed that, the key paradox between two-decade old bilateral
agreements on which DTAC (Double taxation Avoidance convention) has been proposed by the
government. Thus, due to such variations and contractual benefits, firms had determination of all
the operations and variations in policies. It has uplifted level of FDI’s in the country as the nation
and firm has to make less payments of taxes in making adequate determination of operational
gains. Abdullatiff, (2014) ascertains that, Mauritius is the single largest source of FDI in India.
The maximum amount of investments has been made Mauritius firms in India during 2002-03 is
about $534 million. Thus, investors are highly making investments in the Indian Stock market
which is around $5billlion that is almost 10 times as per their previous records. Therefore, due to
such agreements there will be no barriers in making the double taxable payments in two
locations.
Ministry of Finance and Economic Development

As per the views of Richard and Narraidoo, (2014), for management of the financial,
revenue and monetary system in Mauritius it is necessary to have satisfactory management of
each operations that will be appropriate and helpful in making better execution of each
operations. Developing the various legal aspects in the country mainly relevant with the social
progress, good governance, economic development etc. However, there has been sustainable
management in each operational activity as well as addressing each issue that will be adequate
and highly attractive to the businesses. Rizwan, (2012) stated that, this authority assured the
appropriate allocation of governmental funds in all the aspects in economy like infrastructure
development, salaries and various wealth relevant development. It will be helpful for government
in formulating the economic policies and strategies which will be appropriate in meeting the
goals at right time. Fiscal plans and polices, budgets as well as various administrative decisions
will be based on acknowledging the MOFED process (About the Ministry, 2018).
Morabito, Carosin and Vandenbroeck, (2017) demonstrated that, the ministry of finance
and economic development has coordinated with various banks such as Bank of Mauritius and
Financial Services Commission which in turn benefits the nation in having soundness and
stability in financial system. Therefore, these are the rules and regulation which have been used
and monitored in making the adequate implication of various activities and plans. As per the
views of Frankema, (2011), influences of financial regulatory and various operational reforms in
the economy will be based on adequate reasoning and concrete variations in the effective plans.
Laws under the Mauritius Revenue Authority:
According to Betchoo, (2018), there has been various tax challenges which have been
faced by Mauritius government in accordance with analyzing external environment and
controlling the legal operations of business. The creation of Mauritius Revenue Authority was in
2004 enforced by an act of parliament. Framework of this organization is for collecting,
analyzing all revenue in consideration of revenue law. It has been acting as an agent to State for
operations, management and enforcement by revenue law. Functioning areas of this authority is
lies for the adequate assessment of the valuable revenue laws, collection laws and taxation
liabilities of the firm. It has been emphasized on the oversee and coordination relevant with all
the activities which will be appropriate and beneficial in better management, administration and
operation of each activities in the economies. Abdullatiff, (2014) stated that, this regulatory
authority is comprised of delivering the valuable information among society which will reflect

the transparent information and fair value in disclosure (Mauritius revenue authority, 2018).
Therefore, it also comprised of increasing the efficiency and effectiveness in each department as
well as divisions which has approach in maximizing the revenue collection of the industry. The
combat fraud and other forms of tax evasion has subjected to be monitored and balances as per
having better managements and operational control on revenue and various issues.
As per the views of Richard and Narraidoo, (2014), this authority is also executing e-
payments and management of various operations. People of organization which are submitting
the online returns on income tax will be analyzed and administered by the business professionals.
However, there are various acts and laws which executed and monitors the operations of the
corporate units in Mauritius. Considering various acts which are incorporated and in associated
with the various legal activities in the economy such as Customs Act, Customs Tariff Act, VAT,
Income tax acts, Finance Act, 2017 and 2016 etc. Moreover, these are acts which will be helpful
and beneficial in making proper execution of all legal operations in economy. Morabito, Carosin
and Vandenbroeck, (2017) stated that, influences of various direct and indirect taxes will have
favorable as well as unfavorable influences in managing the operations as well as making
effective analysis on the market. However, impacts of DTA will be quite supportive to the entity
in making effective bringing the sustainability in the operations.
Rates of Taxes of Mauritius plus comparison worldwide and Major DTAS with Mauritius:
According to Nel, (2017), ascertaining the impacts of DTAs agreement made by Mauritius
with various other nation on which determination of all the facts is quite necessary and helpful as
per addressing the issues and operations of the firm. However, these are the agreement which
held between the two countries in relation with avoiding the double taxes in the operations.
However, Mauritius is having comparatively strong economy in the world and various nations or
organizations make Direct investments in local businesses as per having better gains and
profitable advantages. Frankema, (2011) stated that, tax jurisdiction has been payable over the
operations of the firm in accordance with managing the operations as well as ascertaining the
impacts of various issues. However, Mauritius has amendments in DTA’s with nations on which
India and China has influences of best taxation benefits.
Mauritius DTA agreements between India:
As per the views of Betchoo, (2018), Double taxation avoiding agreements will be
beneficial among the nations which are participating the trade practices with each other.

Mauritius has been enrolled with the DTA agreement with India that has have affected the
management of operations based on trade practices among countries. Considering the article 11
which emphasizes on interest states. thus, as per this agreement the interest arising the in the
contracting country and paid in the residential state will be taxed in any of the country. thus, it
has clearly been mentioned in the contractual agreement which were signed and discussed
among the professionals and parties which are indulged with the business operations. Gandhi and
et.al., (2016) insist that, the exemption on interest will be given to the parties as per state is
providing the beneficial rights to the parties involves in various contractual agreements.
Exemptions will be based on governmental, local authorities that will be governed and awarded
by contracting state. Similarly, considering various agency or industry which created and
organized by legal authorities or government in the contracting state will have exemption or
taxable benefits, Moreover, banks or any financial institution operating the banking business on a
bonafide agreement basis and have resident in another state will have taxable allowances.
Abdullatiff, (2014) considers that, in Article 12 of the DTA agreement between Mauritius
and India there has been huge benefits and in Royalties’ as the it will be taxed in the residential
state of the contracting state as charges below 15% of the gross amount. However, it comprised
with the various activities which basically bring the contractual agreements between nations such
as Copyrights, literacy, artistic as well as scientific work. It comprised of all the cinematographic
films, radios, taps and television broadcasting. Thus, on which various agreements were signed
in the basis of patent, trademarks, model, plan, designs as well as various features which will be
used to protect and bring confidentiality to the data base. Influences of such agreement and the
contractual agreement which will be adequate and helpful as per making qualitative influences in
various operations of the firm. Richard and Narraidoo, (2014) argued that, these are the activities
which is needed to have adequate preferences and administration of all operations that will be
effective and helpful as per meeting the gains and management of all issues. It will reduce the
taxable charges and bring the adequate gains to the business as per making effective control on
each operation.
Morabito, Carosin and Vandenbroeck, (2017) stated that, agreements held between two
or parties has various feature and aspects such as royalties, interest etc. are the features and areas
of operations which are needed to be considered in making any contractual agreement with the
parties. However, as per considering the Article 13 which is comprised of amendments based on

immovable property such as capital gains etc. However, these are the revenue which have been
gathered by selling out fixed assets of business or an individual. Thus, CGT will be levied on the
basis of DTA agreement between these nations. Thus, India and Mauritius have been agreed on
the taxing the immovable property on the basis of charges in the contracting state of the
residential state.
Mauritius DTA agreements between Singapore:
According to Abdullatiff, (2014), concerning the operational requirements and gains of
trading agencies among Mauritius and Singapore which has emphasized on improving and
soothing the trade practices among various contracting state. Moreover, as per considering the
Article 11 which insist that, there have been appropriate control over income and interest payable
by the organization in due course. It emphases on norms that the contracting state shall make
payments of interest to the beneficiary owner of interest which will be taxable only in other state.
Therefore, the income obtained from such analysis which insists that, payments if interest can be
treated as the income from debt which were being claimed for unsecured mortgage and debtor’s
profit in the particular income. It includes governmental securities, bonds, debentures as well as
various premiums and prizes that will be helpful in attaching the securities, bonds or debentures.
Betchoo, (2018) stated that, there will be penalties which will be levied on parties’ who breaches
the contracts such as late payments, fixed based establishment illegal expenses etc.
As per the views of Kotha, (2017), Considering the Article 12 DTA agreement which
defines that the contractual agreement held among the parties on which transactions will be
based on influences of copyrights, artistic as well as scientific work, patent rights, trade marks,
secret formula, computer program, plan etc. However, it comprises with analyzing such
requirement which are needed to be monitored and are required to be kept confidential. Biagi,
Brandano and Pulina (2017) determines that, Royalties which are rising in a contracting location
as well as payable to the resident of such place when the recipient will be beneficial owner of
royalties and taxable only in other state.
According to Richard and Narraidoo, (2014), by addressing the article 13 of the DTA
agreement these nations on which Capital gain transaction has been recorded and administered
with per norms and regulations. Thus, these are the gains which have been gathered by parties on
the sale and purchase of fixed assets. Therefore, the gains have been derived by an individual
who is resident in the contracting state from the alienation of immovable property. Thus, on

which it can be said that the contracting nation individual has to make the payment of the taxes
on the gains derived from such capital gains. Biagi, Brandano and Pulina, (2017), analyzed here
that, there are various areas of operations which are needed to be considered and monitored as
per analyzing taxes which are needed to be payable over the operations.
2.3 Current requirement of local citizens and organisation in Mauritius
Important the Rulings of the OECD:
Kotha, (2017) demonstrated that, on which here are various taxation rulings which have
been estimated total taxes which have been payable by the parties which are involved in trade
practices among the nation. There has been consideration on Forum on Harmful Tax Practices
(FHTP) which will be adequate and helpful as per determining the various ruling and the
taxation practices. There has been ascertainment of various laws and ruling which are needed to
be considered by the parties which are making tax practices such as rulings relevant with
preferential regimes, cross border unilateral advance pricing arrangements or other unilateral
transfer pricing rulings. Considering various amendments which have been stated in the articles.
Recently, OECD has presented various changes in analysing taxes levied on each transaction
with the support of IT-tools used in various activities.
According to Alsamawi and et.al., (2017), Mauritius has been determined as a tax heaven
where various organisation and other nation tends to make investments for adjusting the black
money as well as enjoying lower duty taxes. OECD is the group of countries which operates has
an intergovernmental economic organisation with consists 36-member nations. It incorporates
and simulates the economic progress and world trade of various countries. However, there has
been consideration of various ruling which have been presented by this organisation as per
developing favourable taxation system among countries engaged in various tax activities. Dogan,
Seker and Bulbul, (2017) stated that, Harmful tax practices has been considered by this
organisation in relation with making effective review reports on exchanging information on tax
rulings. As per BEPS action 5 which inclusive all standards and framework members which has
have committed actions to implement the changes. Moreover, there is needed to have
transparency regrading trade practices and sharing the tax ruling information.
Beebeejaun, (2018) determined that, consideration has been payable under BEPS with
regards to make effective determination of key five elements such as executing the information
gathering process, exchange of information, statistics on exchange ruling, transparency on

transaction based on intellectual property and confidentiality of such information. Moreover, to
remove the chance of harmful taxation on various transaction on trade practices as well as
inurement activities among nation on which consideration of various rulings will bring
satisfactory administration.
2.4 Recent variations in monetary, economic and taxation policies
In accordance with the views of Paramati, Apergis and Ummalla, (2017), considering the
history of Mauritius on which there has been huge variation in economic conditions of this
nation. Considering various economical elements which have impacts in rising the financial
stability in the nation. As per analysing the recent economic development in the nations on which
Mauritius has rapid growth and due to such impacts, there have been rise in the economic level
and operational requirements of organisation. Mvovo, (2017) stated that, Considering the
operational framework of various banks on which Bank of Mauritius have been engaged in
various economic decisions such as setting the monetary policies, determining the interest rates
and making operational reforms in all banking practices.
OECD and UN convention:
As per acknowledging the rules and regulations which are enacted as per bringing the
satisfactory taxation environment in between UN and Mauritius. Considering various articles
which re listed in the convention among which section 10 denotes for the dividend benefits on
which residential country or contracting country has been engaged in making effective
operational payments and management of all operations. Article 11 is comprised on interest
payments, Article 12 as Royalties and Article 13 as capital gains. Therefore, interest rate has
been payable by parties which determines the UN model Convention for particular withholding
tax rates levied on dividends. Similarly, considering the Article 13 which is based on capital
gains taxes levied on the purchase and sale of any property as per the rates of contracting state.
Thus, if the transaction made in UN or in Mauritius than it will taxed in that nation not in another
or residential state.
OECD and Vienna convention:
Mauritius and Vienna have also various taxable agreements based on DTAs which
determined that charges will be levied on the income gains from various sources at once on the
basis of amendments listed in the laws. As per article 11 there will be taxational charges made on

interest, article 12 as on royalties and Article 13 as on Capital gains. There are various specific
rates which have been demonstrated by these countries in making transactional activities.
Monetary policies:
Considering the economic framework of Bank of Mauritius and Central banks which in
turn considers the macroeconomic policies and the various objectives such as bringing the price
stability, stable economic growth and full employment. Therefore, there will be various changes
and operational control over bringing satisfactory variation in the interest rates and economic
activities in firm (Alsamawi and et.al., 2017). Influences of the central bank in relation with
bringing the variations in the money and credit in Mauritian economy for implicating the
effective interest rates and balanced economic activity. It has the positive influences in managing
the exchange rates and the value of currency in the capital market. The pricing decision has been
made by central banks based on administrating the various inter-bank rates such as repo rate,
reverse repo etc.
Taxation policies:
As per acknowledging the operational practices and policies set by Mauritius government
with regards to make satisfactory changes and operational variations in several operations.
However, there has been recent changes and various incurred in the taxation techniques and
policies set by the government such as Foreign tax credit, Foreign portfolio investors etc.
Moreover, impacts of such reforms and variation has bring the effective credits in the foreign
taxes in organisation (Dogan, Seker and Bulbul, 2017). On the other side, as per considering
fruitfulness and effective variations in the Mauritius taxation practice which has have brought
effective rise in FDI in country. Considering several benefits which bring Mauritius as tax
heaven to other countries.
The International Monetary Fund:
This organisation is comprised of making effective control over financial stability in a
nation. It approaches towards making effective rise in economic growth, reduction in poverty as
well as bringing the sustainable economic development in nations (Paramati, Apergis and
Ummalla, 2017). As per analysing Mauritius and the internal economic stability of nation,
taxable benefits have maintained the economy. Thus, there are balanced GDP rates, employment
rates as well as adequate per capita income. Considering the operational function of IMF ion

which it can be said that this institution is engaged in making fruitful determination and rise in
the economic level of country.
2.5 Suggestions for reforms and taxation controlling techniques to government
According to Dogan, Seker and Bulbul, (2017), Mauritius taxation system runs as a self-
assessment system. There4 will be charges on the income generated by an individual through
worldwide sources as he is a resident in Mauritius. It comprises with information that the person
is being liable to make payment of all taxes on the income generated by him through various
domestic as well as foreign sources. Along with this, a non-resident will only liable to make the
payments of taxes on the income generated through Mauritius sources. These are the rulings and
sections which are stated in the section 74 and 73 of Mauritius Revenue Authority (MRA).
Gunputh, Jha and Pudaruth, (2017) determined that, due to not so strict rule and regulations
stated in the taxation system and techniques which is needed to have effective administration of
operations. However, it involves several steps and techniques which are needed to be considered
by the governmental authorities for better execution and reforms in the taxation techniques. It
includes interpretation of statistics in light of tax legislations and administrations, derivation of
external control totals for the numbers of potential tax practitioners on the basis of their total
income. There have been various allowances which have been awarded to the residents in
Mauritius. It can be such as the expenditures which are necessarily be incurred in the
performance of duties performed from employment income.
OECD framework under BEPS Action 5:
As per the views of Morabito, Carosin and Vandenbroeck, (2017), there has been various
rulings which have been enacted by OECD in respect with BEP base on taxpayer’s specification.
There are various categories which are needed to be administered by the tax practitioners such as
Rulings relevant with preference share regimes, cross-border rulings providing for a downward
adjustment of taxable profits, unilateral APAs or other relevant cross-border rulings, ruling
which insist the harmful taxational practices and permanent establishment agreed by Mauritian
government.
2.6 Limitation of literature review
Limitations and obstacles which are in associated with the literature review is that there
have been various issues in making completion of the projection. The researchers have made
efforts in the completion of this chapter. It involves various barriers such as improper time limit,

poor collaboration and communication gap has created huge differences and obstacles in making
proper administration of research study.
2.7 Conclusion
By concluding the above literature review on which it can be said that there are various
issues in taxation policies imposed by Mauritian government which brings heaven to the foreign
country. Moreover, making investment in this country will be quite profitable as per lower
taxation rates. This will be profitable for economic development as there will be rise in FDI rates
and effective gains on trade practices.

CHAPTER 3: RESEARCH MERTHODOLOGY
Introduction
The study is based on performing the quantitative research on which researchers will
analyse and distinguish the factors or elements which have impacts on making tax heaven in
Mauritius. Scholars will collect data and analyse as per effective methodology, sampling
techniques as well as data collection methods. In this chapter there will be selection of
satisfactory research philosophies, approach, techniques, designs, data collection and analysis
methods.
Research Philosophy
This is a method of collecting information, analysing it and using as per having appropriate
determination of the facts. There are two philosophies which are usually used in research study
such as Positivism and interpretivism (Mackey and Gass, 2015). In the present research projects
researcher has administered and focused on implicating the Interpretivism research study to
analyse and determine the outcomes which will be studied for better operational development.
Research Technique
Research techniques manes a systematic plan for research conduction. The techniques lay
down a plan and approach in which the research process will be carried out. The research can be
qualitative or quantitative (Meredith and et.al., 2018). Research technique must be selected
wisely as upon this the whole collection and analysis of data for report.
Quantitative method: the data collected in this method are numeric and analysis of data
is done by using mathematical and statistical methods. In case no involvement of numbers no
quantitative research can be carried out. For this method data can be collected through surveys,
observations and secondary data (Abdullatiff, 2014). A wide range of statistical technique are
available for analysis of quantitative data such as bar graph, line graphs, pie charts etc. these
diagrams present data through test of correlation between two or more items (Betchoo, 2018).
Another techniques for analysis of data are cluster analysis which is very useful in identification
of relationship between groups of subjects when there is no hypothesis and testing to identify a
difference between those groups.
Qualitative method: this is a research which do not involve numerical data or any
numbers. This is a method in which any situation can be explained as this does not require any
numbers (Dogan, Seker and Bulbul, 2017). This analysis results in significant information which

gives an in-depth image. This is useful for exploration of question how and why things happen.
The data for these can be collected from various sources such as interviews, focus groups,
postcards, secondary data and observations (Gandhi and et.al., 2016). The data for this method is
drawn form a wider range f sources so the analysis of data present a radically different scope.
For the present research project technique used is quantitative. The method is selected
because for determination of tax and related benefits involvement of numbers and numeric data
is required. Though the complete report is not based on quantity but in certain areas it was
necessary to incorporate numbers and figures (Lewis,2015). A full qualitative approach cannot
be used in this research project as it does not rely completely on pure investigation of
information. So, a quantitative method is chosen here to resent the data. Analysis and evaluation
of such is carried out to examine the outcomes in given scenario.
Data collection
This is a process of gathering of information related with research topic. The data can be
collected through various sources (Vaioleti, 2016). In the process of data collection, information
is accumulated on target topic through establishment of systematic approach, this data so
collected with help in answering relevant question related with research topic and determination
and evaluation of outcome. The method of collection of data are:
Primary method: this means fresh and new collection from original sources. The
researcher in this method select those approaches in which a relevant data and information can
be gathered directly with interaction with people (Mackey and Gass, 2015). The people are
approached by researcher and are asked certain question and the answers given by those people
becomes the primary data for research. The primary method for data collection can be
questionnaires, interviews, observation, case studies and scientific experiments.
In questionnaire method few questions related with research topic are framed and then
random people and group of people are approached for fill in those questionnaires (Hickson,
2016). These can be in physical form or virtual means can be on paper or online.
In interview people are asked questions directly and their answers are recorded either in
audio or video form (Lewis,2015). Another method for collection of data in this method is
observation, in this, people are not directly approached rather their behaviours and habit under
different circumstances are observed and a record is kept for that.

The last approach for collection of data is through is scientific experiment, in this certain
experiment are carried of human being and the outcomes of those are recorded. The recorded
outcomes become the data for research topic (Vaioleti, 2016).
Secondary method:
This is the method in which already collected data is referred for research. Data taken in
account are already complied, assembled, organised and published by others. This includes
reports and studies published by government agencies, business and trade association and
organisations (Brinkmann, 2014). Data can be found in articles, magazines, journals and
publications. This method is way to faster as compared to primary method-as data is available in
readily form just access to that data is required.
For the present research questionnaire method under primary method is selected for
collection of data for topic tax haven in Mauritius. The sample or people to fill such
questionnaire are selected under random sample technique (Hickson, 2016). In this method
random people or citizens are approached. Under this research the random citizens were selected
to fill in questionnaire. For data collection certain journals, publication by government of
Mauritius are also referred and relevant information is considered for present topic of tax Heaven
in Mauritius.
Data analysis
By data analysis we mean that the data so collected under a research topic is examined to
draw a conclusion. This involves examination of information in such a way that reveals
relationship, trends and patterns (Azhdarzadeh and et.al., 2015). The main point to carry out this
is to reach a decision through accurate assessment through better understanding of work and
information. The data collected through questionnaires and journals, publications and articles are
analysed and evaluated for interpretation of whether Mauritius is really a tax Heaven country.
The benefits their own citizen and people of other country can get are represented in particular
format.
Ethical consideration
Ethical consideration in formulation of research is critically importance as this ensures
the truth and fairness in making of research project. In the present report research scholar has
followed all the norms and standards a person must follow while choosing between right and
wrong. The researcher has kept focus on selection of ethical are legal sources for collection of

data and other information for this research project. All the references mentioned at the end of
this project is true and accountable (Sutrisna and Setiawan, 2016). No such data and reference
are mentioned which are false or do not have a relevance with this project. The data collected in
questionnaire method is true and fairs and is actually collected from selection of random
samples.
Reliability and Validity
In a research project reliability means consistency and validity means accuracy. In the
present research all the information and data presented are stable and consistent. The data is
collected from reliable and authentic resources. For primary data all the sample who filled
questionnaires were from either government agencies, tax authorities or people who deals in
international taxation (Kao and et.al., 2016). All the people have an expertise knowledge of this
research topic and presented their views on same by filling questionnaires. Magazines, journals
and articles from which data is collected are all rational are published by either government
agencies or reputed business organizations. All the information presented in this research project
is true and fair along with providing a consistency and accuracy.
Research Limitation
The limitations faced while preparation of this research project was time constrain. The
time allotted was limited that did not provide enough time for conducting an in-depth research
for collection of data (Meredith and et.al., 2018). With more of time in depth research can be
carried out for collection of data and for analysis of data more efficient and complicated
techniques could have been applied. Another limitation faces were no limited availability of
secondary sources for data collection (Abdullatiff, 2014). This was due the fact was available on
authentic sites only and most of them did not provide access to their party users.

CHAPTER 4: DATA ANALYSIS
4.1 Introduction
Objectives of the research is based on analysing the issues and obstacles faced by
Mauritian government. In relation with analysing such economic factors there has been use o
quantitative techniques to gather information. Scholars have collected satisfactory information
regarding economic obstacles which affects the trade practices and taxation process in the
country. In relation with performing the research and survey over the individual researchers have
selected the sample of 20 individual who will be asked various questions and information based
on their opinions. In the search of effective and fruitful information there has been various
sources which were also being addressed such as internet sources, books, journals, articles and
interviews of various governmental dignitaries. This research study will be helpful in bringing
the adequate analysis on the facts.
4.2 Results
As per analysing the outcomes on which researchers have analysed and administered
various sources which are to be studied for better operational control and economic growth. They
have reached to the all possible sources in relation with gathering the informative data for
developing better theories. However, as per making fruitful determination of the facts there have
been selection of 20 individual which are governmental dignitaries. They have expressed their
views and which has been summarized in the fruitful answers to various questions. The opinion
has been based on several economic issues which are recently being faced by the Mauritian
government for better execution of economic practices.
4.3 Governmental plans and policies in economic control at Mauritius
It has been analysed that the Mauritian government has have faced tax heave crackdown
for many of the years which have bound them in struggling for better economic stability. There
have been various allowances and deals of Mauritian companies with India or China in the recent
times. Government has proposed the DTA agreement on which it has become the most soothing
way to make trade practices among such nations (Betchoo, 2018). People started investing in
Mauritius due to less taxes and exemption on the Double tax agreements. Considering the
operational requirements and wants of the businesses which is required to have adequate control
over spending and therefore, in relation with this government has to plan effective economic
policies.

In relation with such issues the government has to focus over various economic issues such
as stock market, corporation, trade practices, per capita income, GDP rates, Inflation and
unemployment in the country (Dogan, Seker and Bulbul, 2017). Mauritius has been denoted as
the taxation heave on which management of various operations are needed to be maintained and
obtained by the economist for better planning and policy making. As per considering the
disadvantages of the taxation heaven in Mauritius, they have developed an upper middle-income
diversification as well as have generated the GDP of 5.3 percent in 2013 as compared with Sub
Saharan Africa which has GDP of 3.8%.
Figure 1 Mauritius GDP rate over the years
Source: (Rise of tax haven Mauritius comes at the expense of rest of Africa, 2017)
By considering the above listed graph which defines that Mauritius has the most
satisfactory growth in per capita income as well as has the stability in the economy of the nation.
Thus, as per executing the planning and procedures which have been adopted by Mauritian
government they have most soothing and appropriate outcomes which will be helpful to them in
leading the operational gains at the right time (Meredith and et.al., 2018). The economists in the
nation has been considered in developing the better economic stability and management of
operations which leads them in having better decision making and policies for economic
operations. It includes Improvements in the investments and saving activities, executing the
labour market and bring reforms, invest in education as well as bring reforms in education
system and enhance the productivity of nation which will help them in removing all bottlenecks
and bringing the sound stability in economy.

To manage the economic performance of country the economists mainly focus over
analysing the three elements which will be helpful in bringing the adequate returns. These factors
included Initial conditions, framing institutions and remedial policies. Administration and
execution of such factors will bring stability in the economic growth and enhances the
productivity of the nations (Nel, 2017). As per considering the development strategies of
Mauritius government has to be focused on various ethnic and economic policies such as
Population control that will be based on satisfactory family planning, Diversification in rapidly
changing industrial structure as well as agricultural planning and assessing a system of subsidies
which will bring the effective wages, removes unemployment and improves economic standard
in nation.
4.4 DTA agreements of Mauritius with several nations
To remove the threat of making the double taxes on the same revenue and income which
have been gained by person or entity has been removed. Implicating such strategies has help0ed
the government of such countries in making the single payment of taxes on the revenue or
transaction made by them (Richard and Narraidoo, 2014). Thus, Mauritius has various DTA
agreement with different nation on which India and Singapore is taking the optimum advantages
of this tax heaven. Agreement has considered various elements and the sources through with the
revenue has been generated and rate of taxes will be charge over it. It includes interest, royalties,
capital gains etc. Moreover, it will be adequate and helpful to the nation as per having better
operational control and administration of operations.

Figure 2Monetary ranking in Mauritius and other nations
(Source: Global business-economic and cultural commentaries,2018)
Demonstrating the impacts of DTA agreements in making satisfactory economical
changes such as higher revenue gains to the individual or corporation which are engaged in any
trade practices or transactional activities performed by them. Tax heaven in a nation will be
beneficial in bringing satisfactory level of FDI investments which will result in raising capital
market as well as market stability (Dogan, Seker and Bulbul, 2017). Due to application of DTA
agreements there will be various taxation benefits which has have affected in raising the level of
economic operations. As per the DTA agreement made by Mauritius with China on which it
charge taxes as per permanent establishment for 12 months on building sites and furnishing sites.
On dividends it is 55, on interest it is 10% and royalties it is 10% respectively. On the other side,
as per considering the taxation practices and DTA with India it has various charges on the
permanent establishment it charges 9 months on building sites, 3 months for furnishing of
services. Similarly, for dividends the rate is 5% and 15% for interest it charges 7.5% and for
Royalties it charges 15% (TAX HAVENS AND MONEY LAUNDERING IN INDIA, 2018).

Figure 3 Mauritius taxation system and income standard
(Sources: Why isn’t anyone paying taxes in low-income countries, 2015)
In consists of various impacts of such DTA agreements on foreign investors such as
India-Singapore tax treaty is co-terminus with the capital gains tax allowances that Indian shares
will be taxable in Indian treaty from 1st April 2017. Along with this, there will be 0% tax will be
levied on the listed shares which has been held by the corporation or the individual for more than
1 year (Gandhi and et.al., 2016). Thus, it will be treated under long-only funds that will not be
charges under any domestic laws. Hedging of the various funds and short-term investors will
have to make payments of 15% on such short-term capital gains on transfer of shares while it
will be payable as 7.5% for 2 years.
4.5 Requirement of local citizens and corporate industries
To analyse the requirements of domestic operating entities as well as residents in Mauritius
on which it can be said that the DTA agreement have affected national economy. Thus, tax
heaven in the country has bring rise in monetary circulations which has have affected in making
improper operational control and valuation of nation’s currency. As per acknowledging the
framework of OECD in respect with presenting the adequate solution and making fruitful
determination of the facts it can be said that there are various rulings which are in favour of
protecting the nation from unlawful and inadequate losses (Mackey and Gass, 2015). The
payments of transfer fees have been payable by the government and counter parties which are in
associated with the trade practices has been engaged in making the adequate taxable payments on
decided rates.
4.6 Monetary system in Mauritius
Bank of Mauritius and central banks have been in approached towards developing a
favourable monetary system in the nation. There will be development of various operations and

trade practices which will be useful for making operational development and management of
trade practices (Abdullatiff, 2014). The motive of government and the economic policies made
by economist is for balancing the currency value in the international market as well as bringing
the financial stability in environment. This bank has aimed at managing the monetary and
financial activities which will bring safeguard to the internal and external value of currency in
Mauritius.
They also act as per directing the policies towards attaining monetary conditions that will
bring strength in economic activities. Moreover, they have been aimed at safeguarding and
bringing stability in the financial environment of Mauritius for better control and execution of
the operations. However, as per considering the operational practices and framework of this
banks is for protecting internal financial environment of nation by shielding it with adequate
planning and implicating policies (Double Taxation Agreements, 2017). As per considering the
operational approaches and techniques used by International Monetary Fund (IMF) with respect
to bring the better economic growth in each nation by meeting their financial needs. Thus, this
institution basically helps nation in attaining the satisfactory growth that will help in improving
their economic standard.
4.7 Economical and taxation policies in Mauritius
As per taking into accounts the taxation and economic policies which have been addressed
by the Mauritian government in context with improving the currency value in the nation. Thus,
the taxation heaven has been benefiting various nations in making Mauritius as a medium for
balancing the adequate operations. In context with the operations which have been performed by
various legal and authentic units such as MRA, OECD, FATC etc. These are the organisation
which have approached towards bringing the taxation and economic stability in nation that will
affect in rising beneficial gains (Richard and Narraidoo, 2014). Mauritius in being denoted as the
taxation heaven for various nation which bring them in becoming mediator for various trade
practices. Thus, as impacts on having better operational control and management of operations.
Moreover, various DTA agreements made by Mauritius with India and China which will
be effective in bringing the smooth trade practices among the nation, individual and
corporations. Creating various protocols will bring them favourable gains and exemptions on
various activities. Along with this considering the operational practices of Base Erosion and
Profit Shifting (BEPS) which has benefited Indian government in renegotiation and posses the

claims on the capital gains with Limitation of benefits (LOB). Therefore, these are the
expectation of international investors in nation (Meredith and et.al., 2018). However, after
implication of such DTA agreement and the reforms in taxation policies has brought smooth and
effective way of making appropriate operational management and control. Protocols build in
Mauritius says that India has right to tax capital gains on transaction of Indian shares which
acquired on and after 1st April 2017. Thus, it will not be being double charged in Mauritius again.
4.8 Reforms which are needed to be made by government
As per considering all the obtained information and after analysing opinion of various
dignitaries on which it can be said that there have been various benefits to the foreign investors
which respect to make the adequate determination of the operations (Mackey and Gass, 2015).
Mauritian government has to make various changes and operational variations which will bring
stability in the national economy such as improving the policies based on divided, interest rates,
capital gain taxation and royalty. There are various economic factors which are needed to be
considered by economists in Mauritius as per having better execution on financials.
Figure 4 OECD outcomes in 2015
(Source: Trust in Government, 2015)
As per considering the OECD framework which has have imposed various taxation rulings
in Mauritius as per shielding the nation with financial crisis and issues. It is required that,

residents and the industrial units has to be much focused about the operational practices and
management of various operations which will required to have adequate managements of each
operation (Brinkmann, 2014). Mauritius will be tax heaven for various countries in terms of
developing their businesses and brand in the country but it is required that government should
make effective plans and policies which brings control on financial practices.
Conclusion
On the basis of above chapter and the findings from the survey it can be said that
Mauritius has been benefiting various nation due its lower tax rates. Thus, which will be helpful
in rising the FDI rate and capital stability ion the economy. Managing the economic environment
will be based on applying and implicating various tools and techniques which will result in
developing fruitful gains. Moreover, this part of the study has brought the appropriate solutions
to the issues which are needed to be undertaken by

CHAPTER 5: RECOMMENDATION AND CONCLUSION
Introduction
Covering all the aim and objectives of the study on which analyzing issues which in turn
affects in managing various obstacles. In the following chapter there will be discussion made on
the outcomes which had been analyzed by the researchers in context with the research issues.
Taking into account the opinion of various individual will be beneficial as per managing and
making effective operational control on the operations. Impacts of tax heaven on the corporation
and investors in capital market will be addressed as per having better operational control and
determination of all the facts. This chapter will bring the summarized information and
recommendation to the governmental dignitaries to make fruitful reforms ion the policies which
in turn reflect in stable economic conditions in Mauritius.
Conclusion
On the basis of above research, the aim lies for ascertaining the taxation plans and policies
made by Mauritian government with context of balancing the monetary systems and economic
environment in country. It is comprised on analysed operational framework of various
organisations such as OECD, IMF, MRA, FATC and DTA agreements. These institutions have
main role in planning and developing economic policies for the nation which will be beneficial
in balancing the operations in Mauritius. Mechanism over various economical decision which
will be satisfactory as per controlling the monetary transactions will make satisfactory
development of strategies. Mauritius has comparatively lower tax rates and charges on the
transactional activities which in turn brings the benefits to various other nations in making
investment in Mauritius.
Stocks and capital market which will be taken into account that in turn has have affect in
making the adequate plans and policies for smooth controlling and management of operations.
Moreover, it can be said that the changes in taxation policies will affect the investors to the
nation in the capital market of to initiate business in Mauritius. Therefore, to take the advantages
of this tax heaven there will be rapid growth in the economic level as well as rise in the currency
value of nation.
Recommendations
As per ascertaining outcomes and findings through research survey, it will be
recommended to governmental dignitaries that, the implication of various plans and polices will

impacts on rising financial gains. It will bring rise in the level of economy, GDP% as well as FDI
rates in the nation. Mauritius will have sound capital stability as well as have effective balanced
current accounts. Moreover, it will be recommended to the economists and the financial
dignitaries that they must make balance in the operational efficiency. The higher investment in
the nation the higher the level of productivity and GDP rate in the nation. Improvement in the
currency value of the nation will be depends on each activities and performance of various tasks.
Thus, it will positive result on improving the per capita income as well as bringing stability
in the economic standard and revenue generation of people. In addition, for being more
beneficial for other nations as per considering the tax heave on which there will be requirement
of considering on various economic factors such as:
 Proper transparency in disclosing the taxation system and practices in the nation.
Similarly, it will result in attracting the large number of investors in the nation and that
reflect in rise in FDI and GDP simultaneously.
 Influences of laws, regulation in imposing various trade activities as well as performing
all the transactional operations in the business unit. It will be beneficial in managing the
operations and bringing the nominal taxation to the tax practitioners.
 The activities which were being held in the business in needed to be substantial and
appropriate in determining the economic needs and stability in taxation practices of the
business.
Suggestion for the next research
Moreover, after performing this research study there had been various operational
requirement of effective contribution. Thus, the level of commitment has been requiring for
drafting the proper determination of all the operations and management of various practices. It
will also be analysed here that, to analyse the large number of population and bringing the
concrete solution ion research issues there is need to manage work and surveys according to the
time limit and operational wants.

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APPENDIX
Questionnaire
What is your age? Tick where appropriate
Below 18 years
Between 18-25 years
Between 25-35 years
More than 35 years
What is your gender details? Tick where appropriate
Female
Male
Which target group is to be examined?
Tick where
appropriate
Bank professionals
Governmental authority
Women
Men
Domestic Citizens
Unemployed
Employed
Which location has been concerned for research?
tick where
appropriate
Urban areas
Rural areas
Bothe Urban and Rural
As per your opinion do you think Mauritius has been denoted as tax
heaven?
Tick where
appropriate

Yes
No
What are the indicators which determines a country as tax
heave?
Tick where
appropriate
No or only nominal taxes
Lack of transparency
Unwillingness to exchange information with tax administration
Absence of a requirement that activity be substantial
According to you, economic control plans and policies by
Mauritius government mainly emphasised on which activity? Tick where appropriate
Budget preparation
Developing corporation with international financial institution
Mobilising financial resources
Framework for sound management in public finance
Which DTA agreement will be beneficial to Mauritius?
Tick where
appropriate
China
India
UN
Vienna
Do you believe that there have been influences of local
citizens and corporation in economic planning? Tick where appropriate
Yes
No

Who are the main governors of Monetary system in Mauritius?
Tick where
appropriate
Bank of Mauritius
OECD
IMF
Mauritian government
Which are the most effective economic and Taxation policies
makers in Mauritius? Tick where appropriate
OECD
MRA
FTAC
BEPS
What are the current reforms made by Mauritian government?
Tick where
appropriate
Improving taxation process
Regulation on transactional practices
Rise in import duties
Balancing monetary system
Enhancing currency value
Detecting fraud
What are the factors which are affecting financial
crackdown? (Tick where appropriate)
Not a
factor
Minor
factor Moderate Severe
Lower interest charges
Low rate of import and export duty
In appropriate economic plan
Rise in Competition