July 25, 2019

Anna Murray 

The International Consortium of Investigate Journalists ICIJ had an investigation to disclose that the operation of Mauritius assisted the multi-international corporation of tax avoidance. Because of the tax treaties, poorest countries in Africa are going to lose the opportunity to receive millions of tax revenues from global corporations and the rich. 

This investigation revealed that the sophisticated financial system in Mauritius office to distract tax revenue from poor countries then send back to the Western corporations. Mauritius received shares at the final part of the sophisticated financial system. Two major tools were adopted in this financial system-bargain the basic tax rate and a series of tax agreement with poorer countries in Africa. 

According to the investigation, Mauritius plays a media in this tax avoidance system allowing corporations to avoid paying taxes to African countries while corporations have profits. In addition to the global corporations, the rich around the world, including United States, Thailand, and Oman, are all involved in this financial system to avoid tax. 

However, the minister of financial service of good governance in Mauritius denied the disclosure of tax avoidance and claimed that the file was outdated.

The tax agents in Egypt, Senegal, Uganda, and Lesotho confirmed that they all had the tax treaties with Mauritius. The tax agents admitted these tax treaties had the negative effect on their development.

Eric LeCompte, a United Nations finance expert and head of religious development group Jubilee USA Network, stated that we have to erase this kind of tax avoidance revenue to assist the poorer countries to meet Sustainable Development Goals. 

Photo:Webshot.