Explanatory note

The Schedule to this Order contains a Protocol (“the Protocol”) which further amends a convention between the Government of the United Kingdom of Great Britain and Northern Ireland and the Government of the Republic of Mauritius for the Avoidance of Double Taxation and the Prevention of Fiscal Evasion with Respect to Taxes on Income and Capital Gains (“the Convention”). The Convention was scheduled to the Double Taxation Relief (Taxes on Income) (Mauritius) Order 1981 (S.I. 1981/1121) and previously amended by the arrangements scheduled to the Double Taxation Relief (Taxes on Income) (Mauritius) Order 1987 (S.I. 1987/467) and the Double Taxation Relief (Taxes on Income) (Mauritius) Order 2003 (S.I. 2003/2620). This Order brings the Protocol into effect.

The Convention aims to eliminate the double taxation of income or gains arising in one country and paid to residents of the other country. It does this by allocating the taxing rights that each country has under its domestic law over the same income and gains, and/or by providing relief from double taxation. It also has specific measures which combat discriminatory tax treatment and provide for assistance in international tax enforcement.

The Protocol continues this approach by updating the exchange of information Article in the Convention to bring it into line with the new international standard for exchange of information as set out in Article 26 of the Model Tax Convention on Income and on Capital published by the Organisation for Economic Cooperation and Development (“OECD”).

Article 1 provides for citation.

Article 2 makes a declaration as to the effect and content of the arrangements specified in the Protocol.

The Protocol will enter into force on the date of the later of the notifications by each country of the completion of its legislative procedures. It will take effect from the date it enters into force.

The date of entry into force will, in due course, be published in the London, Edinburgh and Belfast Gazettes.

In line with government commitments, a Tax Information and Impact Note has not been prepared for this Order as it gives effect to a previously announced policy to enact a double taxation agreement.