By Olivier RogezPosted on 23-07-2019Modified on 23-07-2019 at 18:56
After the "Panama Papers" and the "Paradise Papers", here are the revelations "Mauritius Leaks". 200,000 documents reveal the tax optimization practices of companies that benefit from the low tax rate in Mauritius.
After the " Panama Papers " and " Paradise Papers " , the International Consortium of Investigative Journalists publishes this Tuesday, July 23, the "Mauritius Leaks". 200,000 documents, sent anonymously from the international law firm Conyers Dill & Pearman, specialist in off-shore finance. They highlight the tax optimization practices of companies that take advantage of the low tax rate in Mauritius to accommodate their profits, and this to the detriment of the home countries of these companies.
Everything is legal, but not much is ethical, that is essentially what we learn from the "Mauritius Leaks" leaks Mauritius, revealed by the International Consortium of investigative journalists, and the newspaper Le Monde publishes conclusions.
#MauritiusLeaks: the island siphoning tax revenues from Africa https://t.co/f9JbSUDoiK
The World Africa (@TheWorld_Africa) July 23, 2019Unethical practices
Unethical indeed, the attitude of philanthropic rocker Bob Geldof who advocates for the transparency of business and the accountability of African leaders, while domiciling his investment fund, "8 Miles" in Mauritius to escape the tax .
It is not the only one, big companies like the Franco-Japanese CFAO or the trafigura Swiss trader do the same for some of their operations in Africa, without forgetting some rich businessmen Ugandan or Nigerian.
Mauritius, placed by the European Union on the gray list of tax havens, largely exempts the profits of large corporations from taxes. The rate is around 3% in order to attract capital. And it works. According to the consortium, $ 630 billion of foreign assets are housed in Mauritius, a country that is now one of the emerging nations.
Pauline Leclère, spokesperson for the NGO Oxfam, details the mechanisms put in place in Mauritius
23-07-2019 - By Olivier Rogez
How much does Mauritius lose in tax revenues to African states?
But multinationals are not the only ones involved. For Mauritius has deployed its power of tax attraction to the States, signing forty-five states, including fifteen in sub-Saharan Africa, treaties of double taxation.
Due to favorable tax conditions, many companies rushed to Mauritius to escape the tax in their country. How much does Mauritius lose in tax revenues to African states? Hard to say, but anyway it's too much for some African countries, like Lesotho or Senegal who wish to renegotiate the tax treaties signed with this paradise island, in every sense of the term.
#MauritiusLeaks for $ 6 of foreign investment in Africa, $ 1 comes from a loan from a company implanted in a #ParadisFiscal. When companies circumvent taxes, countries have less money for health and education. RT to say stop to this tax hold-up! pic.twitter.com/26Oc3BnYBM
Oxfam France (@oxfamfrance) July 23, 2019Other states such as Kenya and Malawi have already renegotiated these conventions. For the Mauritian leaders, who claim to comply with the standards issued by the OECD (the Organization for Economic Cooperation and Development) do not escape the current international trend that tends to toughen the fight against tax evasion.
Several NGOs, including Oxfam-France, have also put on the table of the G7 Finance, meeting in France on July 17 and 18, a proposal to introduce a global tax rate for multinational corporations .
Pauline Leclère, spokesperson for Oxfam-France, on how to combat the tax optimization of multinationals
23-07-2019 - By Olivier Rogez
On the same subject
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Mauritius: why does the island appear in the Paradise Papers?
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