The Finance (Miscellaneous Provisions) Act 2019 introduced the Voluntary Disclosure Incentive Scheme (VDIS) and the Tax Arrears Settlement Scheme (TASS) to help Small and Medium Enterprises (SMEs) settle their tax liabilities.
Over the years, the Mauritius Revenue Authority (“MRA”) has been successful in broadening the tax base and, for the fiscal year 2018/2019, the MRA collected a total of over USD 2.8bn in tax revenues. The debt settlement schemes, such as the Alternative Tax Dispute Resolution and the Expeditious Dispute Resolution of Tax Cases, raised approximately USD 12m last year. Through the exchange of information with foreign authorities, the MRA has gathered information about Mauritian individuals having foreign financial accounts worth nearly USD3bn and corporates having assets worth USD28bn. We expect more tax assessments to be raised by the MRA in the coming years.
In light of the above and to help taxpayers regularise their tax matters, new schemes have been introduced such as the Voluntary Disclosure Incentive Scheme (VDIS) and the Tax Arrears Settlement Scheme (TASS). PwC Mauritius tax dispute litigation specialists can assist you with your tax issues and exposures, including negotiating and agreeing settlements with minimal tax liability.
The VDIS-SME offers a 100% waiver of penalties and interests and is available until 29 November 2019 in respect of
The VDIS-SME is available for any cases pending as at 10 June 2019 in front of the Objection Unit of the Mauritius Revenue Authority, Assessment Review Committee (ARC), Supreme Court or Judicial Committee of the Privy Council (JCPC).
Under TASS, an SME can settle any tax due as at 10 June 2019 and obtain a 100% waiver of penalties and interests. Any application should be made by 31 January 2020 and the tax paid on or before 31 March 2020.
The TASS covers any return submitted under the Income Tax Act or Value Added Tax Act on or before 30 June 2018. The scheme does not include cases pending before the ARC, Supreme Court or JCPC as at 10 June 2019.
Note: An SME is defined as a business entity whose annual turnover for the year of assessment 2017-2018 did not exceed Rs 50m. An SME does not include providers of services as per the Fifth Schedule of the Income Tax Act such as accounting firm, architect, attorney, engineer etc.
The PwC Mauritius tax dispute litigation specialists can assist you with all issues raised by the MRA, including negotiating and agreeing settlements with minimal tax liability.
Our experience of working with the tax authorities has helped us to develop a comprehensive knowledge of the litigation processes and methodologies. This allows us to get you a quick resolution of cases through negotiations with the MRA.
We have handled hundreds of cases over the years for a wide range of clients and achieved a proven track record of high success rate. We have also successfully assisted clients in obtaining refunds from the tax authorities. We have the expertise, experience and network to deliver value when you are faced with a dispute over taxation.
"Many thanks to PwC for the support in building a very robust and compelling case. Great team effort and lots of learning experiences."
Anthony Leung Shing
Country Senior Partner, Tax Leader, PwC Mauritius
Tel: +230 404 5071
Tax Partner, PwC Mauritius
Tel: +230 404 5079