So. Africa, Mauritius negotiate tax treaty to target illicit financial flows

Author: Lisa Steyn, Mail & Guardian (So. Africa), Published on: 25 June 2015

'Tax treaty with Mauritius blocks outflow', 26 Jun 2015: [In line with] [g]lobal…initiatives…to close tax loopholes…South Africa[‘s]…new treaty with Mauritius …[which] will be applied from January 1 [2016]…[is] intended…to make it harder for companies to pay taxes where their money is not earned because of a lower or no-tax regime…Treaty shopping by corporates to exploit loopholes to avoid paying tax is not illegal, but is increasingly considered unethical because poor governments…miss out on revenue from mega-profits earned within their borders….The [South African] treasury said the agreement had been proposed as the main test of the OECD’s model, which is part of the BEPS [base erosion and profit shifting] initiative taking place under the guidance of the G20, which includes South Africa…Wolfe Braude…of…Emet Consulting, said…“It is highly unlikely we will meet our millennium development goals, or address global…inequality…[without] shutting down tax havens,”…

Read the full post here