<div align="justify">In a significant step, Mauritius will soon start automatically sharing of tax information with India and other countries as part of global efforts to curb multinational companies from profit shifting activities.<br /><br />The development also comes months after the island nation, long perceived to be a jurisdiction for alleged illegal fund flows into Indian shores, agreed to revise its bilateral tax treaty with India to address the concerns.<br /><br />Along with Mauritius, six other countries signed the Multilateral Competent Authority Agreement for Country-by- Country Reporting (CbC MCAA), bringing the total number of signatories to 57, OECD said in a statement on Friday.<br /><br />India signed the agreement in May last year.<br /><br />Paris-based think tank Organisation for Economic Cooperation and Development (OECD) said the agreement is part of “continuing efforts to boost transparency by multinational enterprises (MNEs)”.<br /><br />Apart from Mauritius, Gabon, Hungary, Indonesia, Lithuania, Malta and the Russian Federation have now signed the pact.<br /><br />The CbC MCAA allows signatories to bilaterally and automatically exchange country-by-country reports with each other, as contemplated by Base Erosion and Profit Shifting (BEPS) Action Plan.<br /><br />“It will help ensure that tax administrations obtain a better understanding of how MNEs structure their operations, while also ensuring that the confidentiality and appropriate use of such information is safeguarded,” OECD said.<br /><br />BEPS refers to tax avoidance strategies that exploit gaps and mismatches in tax rules to artificially shift profits to low or no-tax locations.<br /><br />Under the inclusive framework, over 100 countries and jurisdictions are collaborating to implement the BEPS measures and tackle such instances.<br /><br />In May 2016, India had signed with Mauritius the revised Double Taxation Avoidance Convention (DTAC), in a bid to prevent “abuse” of the tax avoidance treaty.<br /><br />The island nation is a major source of foreign direct investments coming into India.<br /><br />Meanwhile, OECD said information on the activation of exchange relationships under the MCAA would be released in due course.</div>
<div align="justify">In a significant step, Mauritius will soon start automatically sharing of tax information with India and other countries as part of global efforts to curb multinational companies from profit shifting activities.<br /><br />The development also comes months after the island nation, long perceived to be a jurisdiction for alleged illegal fund flows into Indian shores, agreed to revise its bilateral tax treaty with India to address the concerns.<br /><br />Along with Mauritius, six other countries signed the Multilateral Competent Authority Agreement for Country-by- Country Reporting (CbC MCAA), bringing the total number of signatories to 57, OECD said in a statement on Friday.<br /><br />India signed the agreement in May last year.<br /><br />Paris-based think tank Organisation for Economic Cooperation and Development (OECD) said the agreement is part of “continuing efforts to boost transparency by multinational enterprises (MNEs)”.<br /><br />Apart from Mauritius, Gabon, Hungary, Indonesia, Lithuania, Malta and the Russian Federation have now signed the pact.<br /><br />The CbC MCAA allows signatories to bilaterally and automatically exchange country-by-country reports with each other, as contemplated by Base Erosion and Profit Shifting (BEPS) Action Plan.<br /><br />“It will help ensure that tax administrations obtain a better understanding of how MNEs structure their operations, while also ensuring that the confidentiality and appropriate use of such information is safeguarded,” OECD said.<br /><br />BEPS refers to tax avoidance strategies that exploit gaps and mismatches in tax rules to artificially shift profits to low or no-tax locations.<br /><br />Under the inclusive framework, over 100 countries and jurisdictions are collaborating to implement the BEPS measures and tackle such instances.<br /><br />In May 2016, India had signed with Mauritius the revised Double Taxation Avoidance Convention (DTAC), in a bid to prevent “abuse” of the tax avoidance treaty.<br /><br />The island nation is a major source of foreign direct investments coming into India.<br /><br />Meanwhile, OECD said information on the activation of exchange relationships under the MCAA would be released in due course.</div>