New Delhi: Under pressure from India to quickly amend the bilateral taxation treaty, Mauritius on Friday said it shared tax related information in over 170 cases and is taking steps to curb round-tripping, which refers to re-routing of funds to avoid tax liabilities.

"There have been effective exchange of information on 170 cases over three years between the two nations and some were even outside the framework of Double Taxation Avoidance Agreement (DTAA)," Mauritius Minister of Foreign Affairs, Regional Integration and International Trade, Arvin Boolell, told a press conference.

The visiting Mauritian Minister has on Thursday met Prime Minister Manmohan Singh and External Affairs Minister S M Krishna and discussed various issues including revision of DTAA and implications of General Anti Avoidance Rules (GAAR) on FIIs and other investors registered in the island nation.

India has been in dialogue with Mauritius to revise DTAA since 2006 to curb the menace of tax evasion by companies and foreign financial institutions (FIIs) registered in the island nation.

Under the DTAA, a company registered in Mauritius is required to pay capital gains tax in the island nation on capital gains from investments in India. As Mauritius does not levy capital gains tax, the companies escape liability.

On sharing of banking information, Boolell said, "Mauritius has been forthcoming to disclose certain privileged information".

According to the Minister, Mauritius has been sharing information with the Financial Intelligence Unit, Financial Service Commission and Securities and Exchange Board of India.

Referring to the Vodafone tax case, he said, "within seven days we have been forthcoming to release appropriate information (we have done it) whenever required."

On the issue of round-tripping, a mechanism used by investors to re route funds from low tax or no tax countries to escape liability, Boolell said, "Mauritius has done everything to curb round-tripping".

Mauritus, he added, "is willing for further cooperation within the framework of international laws and standards and on the issue of round-tripping".

A large quantum of foreign investments in India are routed through Mauritius to escape the tax net, which has prompted the government to come out with GAAR to prevent abuse of the bilateral tax treaties.

Although the proposal to introduce GAAR was mooted by former Finance Minister Pranab Mukherjee, he had deferred its implementation by one year till April 1, 2013 in view of the concerns expressed by foreign investors.


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