Mauritius offers India 2 islands in effort to preserve tax treaty

[Virendra]

I think that land is (compared to money) a more important asset to hold on to, for long term.
But crucially important to know - are we in a position to lose the money that we will, due to the tax treaty?

 

[Cliff@sea]

I think that land is (compared to money) a more important asset to hold on to, for long term.
But crucially important to know - are we in a position to lose the money that we will, due to the tax treaty?

BBC News - India 'loses $500bn to tax havens'

13 February 2012
India 'loses $500bn to tax havens'
The chief of India's federal investigation agency says Indians have illegally deposited an estimated $500bn in overseas tax havens.

Central Bureau of Investigation (CBI) director AP Singh said Indians were the largest depositors in foreign banks.

Funds were being sent to tax havens such as Mauritius, Switzerland, Lichtenstein and the British Virgin Islands among others, he said.

Analysts say this flight of capital has helped widen inequality in India.

Mr Singh was speaking at the opening on Monday of the first Interpol global programme on anti-corruption and asset recovery in the Indian capital, Delhi.

"It is estimated that around $500bn of illegal money belonging to Indians is deposited in tax havens abroad. [The] largest depositors in Swiss Banks are also reported to be Indians," The Press Trust of India (PTI) quoted him as saying.

Mr Singh said getting information about such illegal transactions was a time-consuming and expensive process as each country where money had been sent had to be approached for help with investigations.

He said there was a lack of political will in the tax havens to part with any information because they were aware of the extent to which their economies had become "geared to this flow of illegal capitals from the poorer countries", PTI reported.

In a report in November 2010 the US-based group, Global Financial Integrity, said India had lost more than $460bn between 1948, a year after Independence, and 2008 because of companies and the rich illegally funnelling their wealth overseas.

India's underground economy accounted for 50% of the country's gross domestic product, it said.

The report said the illicit outflows of money had increased after economic reforms began in 1991.

In recent months, India's Congress party-led government has been on the back foot on the issue of black money and corruption.

The Supreme Court has also chided the government for not doing enough to unearth illicit money.



I am b t w for taking up the offer

 

[Godless-Kafir]

You have not read my post #27?

Read it and then I would appreciate your comment.

Tourism is but only an addendum!

Sea control of sea lanes to India!

Sir but we dont need to build a base there, we can station our Aircraft Carriers in the future for any flight operations.

What we need is a base in Mauritius main island in the bargain, which should also include giving us the smaller islands in the North.

That is good enough, having a military base there of large size is not worth it, may be we can have an small one for supplies and control.

 

[Tolaha]

While the idea of taking up those islands is great, the price tag of many billion dollars lose by illegitimate transactions, for roughly 27 sq kms of a potential candidate to be affected by global warming, is on the higher side!

 

[Godless-Kafir]

While the idea of taking up those islands is great, the price tag of many billion dollars lose by illegitimate transactions, for roughly 27 sq kms of a potential candidate to be affected by global warming, is on the higher side!

In retrospect if they are willing to give so much land then it has to be at great expense to us.

 

[Bhadra]

Why would you turn that BEAUTIFUL island into a stupid military base? We are already getting Aircraft carriers, why on earth would we need to cut those beautiful forests and land to make it into a Monstrosity?

Congress will only ruin that Island, we should promote tourism there unlike in Andaman which we made use for nothing.

Aircraft carrier runs on lots of gasoline. Island is static aircraft carriers that runs on very less gasoline.

 

[panduranghari]

I think this is a bad idea. Also the island is not in a great strategic position where we face great many threats. On other hand we are loosing 1000s of crores due to the tax treaty with mauritius. Time for a reset.

Get the islands and then tighten the tax avoidance.

 

[skumar7777]

Aircraft carrier runs on lots of gasoline. Island is static aircraft carriers that runs on very less gasoline.

Get the islands and then tighten the tax avoidance.

If we were so strategically oriented, we would have made better use of Lakshwadeep and Andaman & Nicobar. We really don't need these islands if we want to project strategic depth. We could get a better deal from Madagascar if we tried. We are intent on leaving intentional holes in our tax regime so that we can exploit them for our narrow personal gain (I mean the politicos).

 

[trackwhack]

I think this is a bad idea. Also the island is not in a great strategic position where we face great many threats. On other hand we are loosing 1000s of crores due to the tax treaty with mauritius. Time for a reset.

The strategic importance will only be apparent if this offer was open to China in the future. They will happily take it. We must negotiate better tax terms with Mauritius and get the islands too as part of the negotiations.

Do you know how much Exclusive Economic Zone we gain by just those two tiny islands?

 

[Tolaha]

The strategic importance will only be apparent if this offer was open to China in the future. They will happily take it. We must negotiate better tax terms with Mauritius and get the islands too as part of the negotiations.

Do you know how much Exclusive Economic Zone we gain by just those two tiny islands?

Agreed on the importance of those islands. But its the price that we end up paying is what I'm not sure about. We probably should try to get these islands and maybe even more, without actually paying anything!

We could offer them, among others, a place to call as 'home' when the globe gets warmer. We could reserve a few uninhabited islands to the Mauritians in return for an immediate transfer of a few islands now. Something like an insurance policy to the people of Mauritius. But the non Indian origin communities there might have different thoughts on this matter.

 

[Cliff@sea]

i think a Poll should be added to this thread. . .

Possible ?

 

[trackwhack]

See how tiny Andaman and Lakswadeep add to our EEZ. Do you think China is after those tiny lifeless islands because of whats on the island or the massive EEZ that comes with it. EEZ is basically our territory.

 

[Ray]

Security of the the sea lanes from Africa and EEZ!

 

[Ray]

Sir but we dont need to build a base there, we can station our Aircraft Carriers in the future for any flight operations.

What we need is a base in Mauritius main island in the bargain, which should also include giving us the smaller islands in the North.

That is good enough, having a military base there of large size is not worth it, may be we can have an small one for supplies and control.

The Indian Ocean is critical to ensure sea control so as to allow unhindered passage of trade and resources to and from India.

Africa is important in this regard since Africa is abundant in resources and in the areas of agriculture and energy. It maybe noted that from 2001 when the two way trade was US $ 1 billion it has risen to US $ 50 billion in 2010 and will rise to US $ 70 billion as forecasted by 2012.

80 Indian companies have invested US $ 2.3 billion and have purchased 350,000 hectares of plantation in Ethiopia, Kenya, Senegal, Mozambique and Madagascar. India has access to energy resources such as oil, coal and uranium. 12% of India's oil requirement was imported from Nigeria.

India is Kenya's sixth largest trading partner and Tanzania's second biggest investor. India has interest in Sudan's oil and has built Sudan's largest power plant at Kosti generating 500 megawatt at US $ 350 million. In Ethiopia, a US $ 640 million has been given to develop its sugar industry and 379 companies have secured investment permit to make India the largest foreign investor.

In Madagascar India has built a listening and surveillance station. In Mauritius, the Indian Navy has been allowed to surveil and monitor the Indian EEZ. With Seychelles India has Defence Cooperation Agreement since 2003 and has its presence.

India is the fourth largest investor in Mozambique with bilateral trade growing from US $ 178 million in 2005 to US $ 427 million in 2070. India is in partnership with Mozambique in coal with a joint partnership and Mozambique has allowed Indian Navy unhindered access for patrolling the seas.

South Africa trade is on the upswing. The two way trade grew from US 4 billion in 2006 to US $ 12 billion in 2010 and expected to grow to US $ 15 billion by 2014. India also has a Defence Cooperation agreement with South Africa.

Therefore, there is a clear pattern of India emerging a strong partner of the African countries around the Indian Ocean Rim in improving trade, investment and economic growth, to include access to arable land and energy, the last two to ensure India's energy and food security.

To protect this seabound trade, it is essential to have a naval presence as much along the route as possible and this can be achieved by having naval outreach through naval bases.

In this context one should take heed to Mahan who postulated that control of the sea would grant the power to control the trade and resources. Also the fact that Battle at sea was not an end in itself; the primary objective of the fleet was to secure one's own communications and disrupt those of the enemy, not necessarily to seek out and destroy the enemy's fleet.

To this end, both in terms of strategic requirement as also trade, accepting Mauritius offer of the Agalega Islands would be prudent.

 

[Godless-Kafir]

Aircraft carrier runs on lots of gasoline. Island is static aircraft carriers that runs on very less gasoline.

It takes more resources to run a Island base than run a few generators to keep an static aircraft carrier based there.

 

[Ray]

It takes more resources to run a Island base than run a few generators to keep an static aircraft carrier based there.

Provided the aircraft carrier is seaworthy and not in the dry dock for overhaui.

Islands do not require overhaul and is always ready.

A few generators?

 

[trackwhack]

The Island is 10 degrees south of the Equator. Perfect location for ISRO to build a massive Launch complex for Geostationary satellites. Perfect launch site to counter Arianne Space's French Guyana launch site that is 3 degrees North of the Equator.

I am talking a long term vision here, 20 years when ISRO becomes a major player in the launch business. A naval complex and a Satellite Launch complex will be a nice set of overseas assets.

p.s. Another good location for an ISRO launch center is Great Andaman but its kind of close to chinese naval assets.

 

[Armand2REP]

Minister denies Mauritius island offer


TNN | Jul 7, 2012, 04.12AM IST
NEW DELHI: Mauritius foreign affairs and trade minister Arvin Boolell on Friday said that issue of handing over the Agalega Islands to India was not raised either on a standalone basis or as part of the double-tax avoidance agreement between India and Mauritius. "The issue was never discussed with the Indian authorities," he said in response to a TOI report which appeared on Friday.

The TOI report did not say that Boolell had raised the issue with the Indian authorities. Boolell also denied that he had named the Agalega Islands in his conversation about the islands with TOI - again, the report didn't say so. TOI had knowledge about an earlier proposal about the Agalega Islands and had, therefore, put a question on the two islands to which the minister had responded.

During the interaction with Boolell on Wednesday evening he was specifically asked about discussions on handing over "two islands to India". His reply was: "On any issue, Mauritius and India stand shoulder to shoulder. Now, when a request is made, you have to study... and make sure if there is any demand made, you have to see to it that it serve the interest of the two parties. Of course you have to be responsible to the interests of our people. On any issue, however sensitive or insensitive it is, it is dealt with based on the principles of goodwill and mutual respect."

Asked again about the progress on the islands issue, he said: "There are always issues where the discussions, where we have to look at all the parameters. There is no problem on the issue that you just raised." This recorded conversation makes it clear that the minister had said "there was no problem" regarding the handing over of the two islands.

Pressed further on the purpose for which the islands were being offered, he had said: "We want investment to flow into Mauritius. That's why I say use Mauritius as a springboard for investment (to Africa) and locally. Now we want India to respond positively and take advantage - and it is true for other friendly countries - of the tremendous potential of the Blue Economy, which is the ocean economy."

In his statement on Friday, Boolell said he did not refer to any "deal". "Discussions with Indian authorities have centred on how to resolve outstanding problems and focused essentially on exchange of information, curbing of round-tripping, enhancing of substance and providing certainty, clarity and stability to the DTAC."

Minister clarifies Mauritius island offer - The Times of India

 

[Bhadra]

India needs a huge Island to test its futuristic nuclear designs as also for satellite launches . India should look forward for such deserted Islands

 

[trackwhack]

India needs a huge Island to test its futuristic nuclear designs as also for satellite launches . India should look forward for such deserted Islands

These islands are not big enough for a TN test.