The Minister of Finance delivered the Budget speech for 2016-17 to the parliament on 29 July 2016. The most important measures with respect to tax management are summarized below.

–The Mauritius Revenue Authority (MRA) Act will be amended so that the definition of “fraud” for the purpose of administering revenue laws includes non-submission of tax returns.

–An alternative dispute mechanism will be set up at the level of the Mauritius Revenue Authority, consisting of 3 persons, to expedite tax appeals cases exceeding Rs 10 million. Any agreement reached will be binding on all the parties as well as on the taxpayer. If no agreement is reached within 6 months, the dispute will continue to follow the normal objection and appeal process.

–A time limit of 2 years will be introduced for the submission of amended tax returns for individuals and companies.

–A specific penalty will be applicable if losses or refund claims have been exaggerated.

–The non-remittance of withholding taxes, employment income tax and the VAT charged on supplies will constitute a criminal offence. The relevant penalty provision will be strengthened.

–A taxpayer will be allowed to express doubt on the interpretation and application of the law in its tax return and it will be treated as having made a full and true disclosure. Such a disclosure is expected to grant the taxpayer protection from interest and penalties where a genuine doubt has been expressed.

–The MRA will be empowered to request from an individual with an annual net income of more than MUR 15 million, or having assets of more than MUR 50 million, to submit a statement of assets and liabilities.