Mauritius-India Beneficial Ownership Decision Favours Taxpayer

By in

An appellate tribunal in India has held that a legitimate Mauritius citizens tax residency certificate is sufficient evidence that the taxpayer is the beneficial owner of interest income from its investments in Indian debt securities for the purpose of the India Mauritius tax treaty.

The decision in HSBC Bank (Mauritius) v Indian Deputy Commissioner of Income Tax is a welcome result for non-resident individuals paying tax; although regulators in India are anticipated to introduce new disclosure standards that are stricter for foreign portfolio buyers originating from non FATF members.