New Delhi:
Mauritius has provided Indian authorities with banking information and other financial details on more than 90 cases of suspected tax evasion and financial malpractice over the past three years.
Asserting that it has put in place robust measures to help India track black money, the Mauritian Finance Ministry said that the information sought by Indian authorities has been duly provided as per international norms.
While acknowledging that some unscrupulous persons might still beat the systems in place to check flows of black money, the Mauritian Finance Ministry said it has taken additional measures with respect to India.
"... With India, we have developed a mechanism to be in close consultation with the Indian authorities to deal with any issues that may arise. This includes the posting of an officer from the Central Board of Direct Taxes at the Indian High Commission in Mauritius," the ministry said.
Mauritius has often been suspected to be a facilitator of black money round-tripping or routing illicit wealth stashed abroad by Indians back into the country through their banking and financial institutions.
In a detailed reply to queries on the black money issue, Mauritius' Ministry of Finance and Economic Development said the tax treaty between the two countries provides for sharing of banking information.
"Over the last three years, we have received around 64 requests for bank information from India. The requested information was duly submitted to India," the ministry said.
In addition, the Mauritius Financial Services Commission has received 17 requests for information from India's market regulator, Sebi, since September, 2009.
Detailing the requests from India on the black money issue, the ministry further said: "Since late 2007 to date, the FIU-India has made 10 requests for information from the Mauritius FIU."
FIU-India (Financial Intelligence Unit of India) is the nodal agency responsible for receiving, processing, analysing and disseminating information relating to suspect financial transactions to enforcement agencies and foreign FIUs.
The Mauritius FIU has also made 15 information requests from its Indian counterpart.
"Mauritius' laws provide the competent authority with broad access powers to information relevant for exchange purposes, including access to bank information," the ministry said.
"Furthermore, it can obtain the required information from any person who is in possession or control of such information," it added.
There are agreements in place for exchange of information on entities indulging in tax evasion and tax frauds, but concerns have been raised over certain lapses.
As per the existing practice, a bank in Mauritius can inform its customer if a request has been made by India for information about that person on suspicion of wrong-doing and such disclosure to the concerned entity can hamper the probe.
Some lapses have also been been pointed out by OECD, the global agency working on implementation of international standards on taxation and other matters.
An OECD review report last month said that the two countries have a pact in place for automatic exchange of information on a routine basis, but this is not carried out in practice.
Mauritius has not exchanged information spontaneously either, over the last three years, the OECD said, while adding that the maximum number of information exchange requests received by Mauritius were from India.