Mauritius tax protocol to give Indian taxman more powers to probe offshore entities
Image source: economictimes.indiatimes.com

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Mauritius tax protocol to give Indian taxman more powers to probe offshore entities

The Mauritius cabinet has ratified a tax protocol enhancing the powers of Indian tax officials to investigate offshore entities suspected of tax evasion. This protocol introduces a principal purpose test, which can deny treaty benefits if tax avoidance is deemed the primary motive. This significant change follows the Tiger Global verdict and aims to ensure that treaty benefits are utilized for legitimate commercial purposes, reinforcing the integrity of tax treaties.

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