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Tax Administration

Tax Administration

Tax Administration

Voluntary disclosure of income scheme

  • Foreign Assets
    • Introduction of a scheme for taxpayers to voluntarily disclose previously undeclared income held in overseas bank account or used to purchase foreign assets
    • Disclosure made on or before 31 March 2020 will be subject to tax at the rate of 15% on the chargeable income. No penalties and interests will be applicable.
  • SMEs
    • Small and medium enterprises, whose turnover does not exceed MUR50 Million will be able to regularise any undeclared or under-declared income with the MRA free from penalties and interests
    • Payment of tax arrears as at 10 June 2019 will be exempted from penalties and interests provided the payment to the MRA is made on or before 31 March 2020 .

KPMG Views on Voluntary disclosure of income scheme

A person involved in drugs trafficking, corruption, terrorism activities or money laundering will not qualify for the voluntary disclosure of income scheme.

Filing of statement of case to Assessment Review Committee (“ARC”)

  • Where the taxpayer is not satisfied with the determination of an objection, a written representation along with the statement of case may be lodged with the ARC within 28 days of the date of the determination
  • However, the ARC will now grant sufficient time to the taxpayer to file his statement of case and the Chairperson will proceed with the hearing provided that he is satisfied that failure to submit the required statement of case was due to a reasonable cause.

Income Tax

  • An artist will be exempted from the payment of the service fee required to obtain a Tax Residence Certificate from the MRA
  • An assessment shall be raised on a company by the MRA for failure to spend its CSR funds as per the law
  • The legal provision relating to the arm’s length test will be fine-tuned to remove any doubt or uncertainty about its application.

Mauritius Revenue Authority

  • A person will have the right to make a representation to the ARC if he is not agreeable to a claim made by the MRA for payment of duties and taxes on an exempted good due to a breach of conditions attached to the exemption
  • The scheme of Expeditious Dispute Resolution Tax Scheme and Alternative Tax Dispute Resolution will now also comprise of tax assessments raised in connection with the Environment Protection Fee and duties and taxes under Customs Laws.

Registrar-General’s Department

  • The Stamp Duty Act 1990 will be repealed and the Registration Duty Act will be amended to introduce an administrative fee which shall not exceed the administrative fee under The Stamp Duty Act 1990
  • The Arrears Payment Scheme under the Registrar-General’s Department providing for a full waiver of penalties and interests will be applicable for another year to any of its debtors who settle their debt amount by 31 March 2020 for tax arrears due as at 10 June 2019
  • On a re-assessment of the value of an immovable property, no claim for additional duty or tax will be issued by the Registrar-General if the tax is MUR5,000 or less
  • On a re-assessment of the value of an immovable property, the notice by the Registrar-General for additional duty or tax will now be accompanied by a summary of the valuation report together with the reasons and basis for the assessment, valuation methodology and comparable transactions used, if applicable.

Disclaimer

The above information has been extracted from the budget speech delivered by The Honourable Pravind Kumar Jugnauth, Prime Minister, Minister of Home Affairs, External Communications and National Development Unit and Minister of Finance and Economic Development, to the National Assembly, on 10 June 2019.

The Budget proposals may be amended significantly before enactment. The content of this summary is intended to provide a general guide to the subject matter and should not be regarded as a basis for ascertaining liability to tax or determining investment strategy in specific circumstances. In such cases specialist advice should be taken.