Mastering Taxation 2018 - 2019

Apart from corporate tax, companies are also liable to other taxes such as Tax Deducted at Source (TDS), Corporate Social Responsibility, Solidarity Levy for telecom companies, etc. Companies also have obligations under the Advance Payment System.

The Finance Act 2018 has amended some aspects of the above taxes and obligations. The CSR framework has been changed. TDS is now applicable to commissions, and rent payable to non-residents,. All these add to the existing complexities in the application of TDS on payments to contractors and payments made to non-residents for services rendered in Mauritius.

At the end of the course, attendees will have a broader understanding of the application and mechanics of different taxes that affect their businesses.

Employers have an obligation to comply with the PAYE requirements for their employees, which include calculations of the correct PAYE amounts and submission of the annual employers’ return. PAYE represents significant risks for employers if not done correctly. They often face difficulties when determining the tax treatment of a payment or benefit in kind to an employee, which may turn into a tax litigation case, with its associated costs.

This course will cover the basic fundamentals of PAYE in terms of the definition of emoluments, deduction in connection with employment, exemptions/reliefs, minimum wages, negative income tax, international tax aspects for expatriates, and other compliance requirements. 

At the end of the course, attendees will have a good technical understanding of PAYE to help their businesses improve their PAYE processing and mitigate any tax risk.

With the increasing focus from the MRA on enhancing compliance, tax investigations are becoming a common feature. The tax investigation process has its own intricacies and may turn out to be a daunting experience when dealing with tax authorities. A well thought strategy smoothens a tax investigation process.  

This course will cover the different stages in a tax investigation process and explain how best to handle the administrative and legal procedures, either at the Objection or Assessment Review Committee levels. The course will also focus on the Alternative Tax Dispute Resolution process.

At the end of the course, attendees will understand the tax investigation processes, the taxpayers’ rights as well as learn how best to handle requests from tax authorities.

International Tax is constantly evolving especially following the Base Erosion and Profit Shifting (BEPS) Action Plan, which has revamped the taxation of cross-border transactions, be it from a corporate tax or VAT perspective. It is critical that businesses and MNEs keep abreast with the changing taxation environment to understand its impact in their home jurisdictions and/or other countries where they do business.

The course will provide insight into the BEPS Action Plan together with the fundamentals of international tax, such as the application of double tax treaties and taxation of overseas branch, foreign source income and permanent establishment.

At the end of the course, attendees will gain an understanding of the tax risks and implications of dealing across jurisdictions, as well as the latest trends and issues in cross border contracting.

Whilst Value Added Tax (“VAT”) is a tax on consumption born by the final consumer, the supplier has the obligation to comply with the relevant laws and regulations. Not charging VAT on the right amount or at the right time may lead to considerable tax exposure. A sound knowledge on how, when and on what to apply VAT is becoming increasingly important given the diversity of supplies, both in terms of goods and services.

This course will cover the fundamentals of output VAT, which among others include charge to VAT, time of supply, VAT treatment of recharges between related companies. Relevant tax rulings and statement of practices issued by the MRA will be analysed. The calculation of bank levy introduced by the Finance Act 2018 under the VAT Act will also be covered.

At the end of the course, attendees will understand when a business should be VAT registered and impose VAT, what are the different types of supplies, as well as the VAT treatment for certain specific transactions.

Not all input VAT incurred by a company can be claimed. Input VAT in respect of certain expenses (such as accommodation, motor cars, etc.) are simply not recoverable, while VAT incurred on common expenses should be apportioned where a company makes both taxable and exempt supplies. Often, companies do not make the right claim for input VAT. Such practices may expose businesses to significant risk of penalties and interests as the company is over-claiming input VAT.

This course will give a deep insight of the different irrecoverable input VAT together with an analysis of tax rulings and court cases. New rules governing recovery of input VAT brought by the Finance Act 2018 will also be analysed.

At the end of the course, attendees will have a solid knowledge of the mechanics of input VAT to help their businesses improve their VAT system and reporting in order to mitigate the risk of under/over recovery of VAT.