Dismiss Notice
Welcome to IDF- Indian Defence Forum , register for free to join this friendly community of defence enthusiastic from around the world. Make your opinion heard and appreciated.

Mauritius offers India 2 islands in effort to preserve tax treaty

Discussion in 'International Relations' started by ManuSankar, Jul 6, 2012.

Thread Status:
Not open for further replies.
  1. ManuSankar

    ManuSankar Major SENIOR MEMBER

    Joined:
    May 31, 2011
    Messages:
    2,323
    Likes Received:
    588
    Mauritius offers India 2 islands in effort to preserve tax treaty

    NEW DELHI: How far will a country go to secure a favourable deal for itself? Pretty far, it seems. Mauritius has offered a couple of sun-drenched islands to India as part of a trade and investment deal. While the offer has been talked about for a while, Mauritius has revived it - at a time when it's very keen on persevering with the 1983 double-taxation avoidance treaty with India.

    Mauritius foreign affairs and trade minister Arvin Boolell said that it was up to India to use the islands to its advantage. He said the "blue economy" had great potential. India could use North and South Agalega Islands (which are located 1,100 km north of Mauritius and have an official total area of 70 sq km) for setting up hotels and tourist resorts, for trade, marine studies, or for building a strategic presence in the Indian Ocean, official sources told TOI. North Agalega Island also has an airstrip.

    In November 2006, TOI had first reported about preliminary discussions between the two countries for handover of Agalega Islands — which is closer to India than the African country —for development as a tourism and trade hub.

    "There is no problem on the issue," minister Boolell said when asked if the islands could be handed over to India as part of an economic package. Pressed further, Boolell said, "We want investment to flow into Mauritius. India can use Mauritius as a springboard for investment (to Africa) and locally. Now we want India to respond positively and take advantage - and it is true for other friendly countries - of the tremendous potential of the Blue Economy, which is the ocean economy."

    Interestingly, the offer of the islands has been renewed at a time when investment flows into India via Mauritius were threatening to dry up following the proposal to introduce GAAR (General Anti-Avoidance Rules) that aimed at plugging loopholes in the double-taxation avoidance treaty by making disclosure of the source of funds mandatory. Mauritius has maintained that GAAR was creating a lot of uncertainty among investors.

    "We want to develop as an ocean basket and ocean market," said the minister. "The potential is tremendous. We work very closely with India. We should not forget that India has helped us in marking our territories, has helped us in conducting hydrographic studies and in two years we will acquire an offshore vessel from India under the line of credit that India has offered. We are doing several projects together."

    While Boolell indicated that the island nation was open to amendments in the double-taxation avoidance treaty, he denied that there was any misuse.

    In 2006, when the offer of the Agalega Islands was first discussed, India was exerting pressure on Mauritius to amend the treaty and sign a Comprehensive Economic Cooperation Agreement. Subsequently, New Delhi relented amidst suggestions that India had a long link with the African country, with a sizeable population of people with Indian-origin.

    The discussions between the two countries on the two islands -- which may give India strategic depth in the Indian Ocean, especially in its fight against piracy - had then focused on the development of hotels and resorts and upgrading an existing airstrip in the island into an airport.

    In 2006, sources had told TOI that there was also an option to develop a port on one of the two islands. There were, however, no discussions on how the arrangement would be structured. At the time when it was first reported by TOI, there were also some protests in Mauritius against handing over the islands to India.

    Mauritius offers India 2 islands in effort to preserve tax treaty - The Times of India
     
  2. layman

    layman Aurignacian STAR MEMBER

    Joined:
    May 1, 2012
    Messages:
    11,024
    Likes Received:
    3,042
    Country Flag:
    United States
    It is quite an offer to be considered…
     
  3. Himanshu Pandey

    Himanshu Pandey Don't get mad, get even. STAR MEMBER

    Joined:
    Jul 21, 2011
    Messages:
    10,210
    Likes Received:
    4,220
    Country Flag:
    India
    a good offer
     
  4. Anish

    Anish Lt. Colonel ELITE MEMBER

    Joined:
    Dec 2, 2011
    Messages:
    5,960
    Likes Received:
    1,794
    Country Flag:
    India
    Sonia takes 1 and Rahul the other?

    Jai Ho Congress
     
  5. ManuSankar

    ManuSankar Major SENIOR MEMBER

    Joined:
    May 31, 2011
    Messages:
    2,323
    Likes Received:
    588
    Screw Sonia and Rahul,I want at least one Island. :lol:
     
  6. Nirvana

    Nirvana Major SENIOR MEMBER

    Joined:
    May 3, 2011
    Messages:
    2,297
    Likes Received:
    664
    Take it and have one of them for strategic purpose,we Need an Air base and Navy port deep south in Indian ocean.
     
  7. RoYaN

    RoYaN Lt. Colonel ELITE MEMBER

    Joined:
    Aug 22, 2010
    Messages:
    6,454
    Likes Received:
    917
    Can't Stop trolling huh:troll:
    Its a good deal, will help us in increasing the size of our SEZ and will add strategic depth (airport, port) and help with any future claims related to oil and natural gas.
     
    1 person likes this.
  8. Gessler

    Gessler BANNED BANNED

    Joined:
    Mar 16, 2012
    Messages:
    9,745
    Likes Received:
    9,636
    Country Flag:
    India
    The Agelegan Islands are some 1700km away from Cochin, where our indigenous aircraft carrier
    is being built!

    Its true we need an Air base and Naval base there to extend control over all of Indian Ocean.
     
  9. vikas jat

    vikas jat Captain SENIOR MEMBER

    Joined:
    Aug 15, 2011
    Messages:
    1,199
    Likes Received:
    88
    its a good deal i agree we can use it for strategic purposes
    but how can we ignore the economic looses that occuring due to routing investment through mauritious which are not taxed
    the misuse of treaty
    the apprehension that india have..... i mean round tripping of money ie a lot of money is indian coming via mauritious
    40% of FDI we got through this route
     
  10. kaku

    kaku BANNED BANNED

    Joined:
    Jul 2, 2011
    Messages:
    3,715
    Likes Received:
    1,197
    I was thinking the same, i have made some research regard this and I have some photos. After approval I will show you.

    BTW, if we thinking of a millitry base there- Air force and Navy, then this will be good decision.
     
    Last edited: Jul 6, 2012
  11. Anees

    Anees Lt. Colonel ELITE MEMBER

    Joined:
    Jan 14, 2012
    Messages:
    5,694
    Likes Received:
    3,268
    Country Flag:
    United States
    any idea what govt decide after this offer ????:rolleyes:
     
  12. kaku

    kaku BANNED BANNED

    Joined:
    Jul 2, 2011
    Messages:
    3,715
    Likes Received:
    1,197
    [​IMG]
    [​IMG]
    [​IMG]

    On first pic you can see Agelegan Islands which has the distance of over 1000 Km from Madagascar.

    In sec pic you can see that the site can be used as naval base.

    And on third Pic you can see island in red, area of influence ( if navy is deployed ) by green, hitting range by brown, and in yellow you can see that warship can be easily deployed in vietnam or malaysia or in australia.
     
    Last edited: Jul 6, 2012
  13. turkish

    turkish Lieutenant FULL MEMBER

    Joined:
    Mar 18, 2011
    Messages:
    491
    Likes Received:
    310
    Shows India's might and power in the region!!
     
Thread Status:
Not open for further replies.

Share This Page