Ind|a Maur|t|us 1ax 1reaty (rev|s|on)

1he rev|s|on of the above treaty |s under act|ve cons|derat|on as |t |s 3 decade o|d s|gned
w|th the 1ax neaven |s|and nat|on to attract |nf|ow of IDI wh|ch Ind|a needed desperate|y
1reaty the |nvestment |n maur|t|us made |n |nd|a (stock market or otherw|se) w||| be
exempted from tax |n |nd|a and maur|t|us as tax heaven
Lffects
1 huge funds (unaccounted) routed through tax treaty |n Ind|a and convert|ng the same
|nto accounted money was putt|ng a |ot of preasure on Ind|an economy
2 1hese a|| funds were through part|c|patory note 1hus the |dent|ty of the |nvestor was
und|sc|osed
3 Severa| th|rd party |nvestors routed funds to |nd|a through maur|t|us and en[oyed
huge benef|ts
4 1he sources and benef|ts of funds were not known a|so there was frequent
|nvestment and d|s|nvestment |n stock market wh|ch made |t h|gh|y vo|at||e and
tured |nto gamb||ng f|e|d w|thout |og|c
1he mod|f|ed treaty both countr|es proposed changes
1 A|| cap|ta| ga|ns short term (w||| be charged Q 10 |rrespect|ve of sources) and |ong
term cap|ta| w||| be charged Q h|gher rate of tax app||cab|e as per Ind|an Law
2 1he dec|arat|on of the source |s AN ] Ident|ty |s mandatory 1h|s w||| br|ng domest|c
as we|| as such |nvestors at par
3 1h|s w||| a|so make maur|t|us and other |nvestors to d|sc|ose the|r |nvestment deta||s
and |dent|ty to Ind|an Govt on cont|nous bas|s
4 Ind|a w||| seek he|p from maur|t|us to freeze and attact propert|es of tax evaders
Conc|us|on
1h|s w||| have ma[or |mpact on outf|ow of unaccounted money |ts convers|on |nto accounted
money br|ng|ng |t back to Ind|a and mak|ng |t tax free w||| be |n[ust|ce to domest|c |nvestors

'1ack|e Debt Cr|s|s' I8SA te||s Lurope
I8SA (Ind|a braz|| and SA) te||s europe to tack|e the euro zone f|nanc|a| cr|s|s a|ong w|th
econom|c unstab|||ty w|th|n US Lurope Iapan1he I8SA summ|t has |ns|sted about
econom|es better to take dec|s|ons fast or |oose the g|oba| |eadersh|p a|ong w|th st|ff
oppos|t|on form I8SA
Lurope because of sovere|gn debt cr|s|s |s on the verge of d|s|ntegrat|on or |oss of cred|b|||ty
w|th|n g|oba| trade US |s not on|y cont|nous|y avo|d|ng to address the prob|em but a|so
sh|ft|ng and postpon|ng the same from past few years
A|| g|oba| |nst|tut|ons (W1C W8 IMI) are dom|nated by deve|oped countr|es US Lurope
and a|so |ocated |n US 1h|s resu|ts |nto neg|ected deve|op|ng countr|es a|so |mpos|ng
severa| unreasonab|e restr|ct|ons on them
I8SA demand
1 hys|ca||y sh|ft|ng one of the |nst|tut|ons from US preferab|y to any deve|op|ng
country |n order to reduce the dom|nance by deve|oped countr|es
2 I8SA and s|m||ar neg|ected countr|es w||| sh|ft dependance on US Lurope and w||| set
up an a|ternat|ve strong organ|zat|on sh|ft|ng the center of grav|ty from west to as|an
countr|es
Strategy
1 1hree strong econom|es w||| |ncrease the|r growth rate |nd|a braz|| SA w||| be
perfect|y comp||mentory for reg|ona| |nterdependance SA has got tremendous
potent|a| for trade and Ind|a braz|| hav|ng d|fferent set of strengths can both support
mutua| growth and f|nanc|a| |ndependence form western econom|es
Lg severa| Ind|an Co (automob||es te|e o|| exp|orat|on ra||ways fmcg) have set up
the|r pro[ect |n SA
Impact
3 ma[or econom|es cover|ng |arge geography as we|| as the popu|at|on w||| seez to depend
upon west and w||| become stronger and stronger aga|nst saturated western econom|es