Interesting to note a report that:
UK business leaders are concerned that the Indian government could clamp down on the tax havens of Mauritius and Cyprus as it struggles to come to terms with soaring inflation and budget problems.
As the Glasgow Herald noted:
Yesterday, as published data showed that inflation in India has hit a 13-year high of 11.05%, key British business figures gathered to assess the opportunities and risks of doing business in the Asian country.
Of major concern is the future status of Mauritius and Cyprus, where many UK companies base their Indian operations so they can benefit from the islands’ tax treaties with the country. Such is the popularity of this route that Mauritius is the largest source of foreign direct investment into India.
Sanmit Ahuja, director of the India programme at the Commonwealth Business Council said:
The India government feels that a lot of dodgy money is round-tripping (to Mauritius and Cyprus). So it is a concern.
It’s more than a concern. As we often note, this sort of activity undermines the whole democratic basis of government. That is another reason why tax havens have to go.