The EU, OECD and UN Attack on Offshore Jurisdictions
Since the aim of a single currency in Europe is now the highest priority within the EU, the offshore world has increasingly been under attack. Capital flows from high tax jurisdictions to low tax jurisdictions will pressure the fixed parameters which the Exchange Rate Mechanism requires EU countries to adopt, and these flows cannot be tolerated by the European Central Bank.

Hence the EU, in conjunction with the Organisation for Economic Cooperation and Development ("OECD") has been putting pressure on traditional low tax jurisdictions, or "tax havens" as they are pejoratively referred to. Already, the UK parliament has converted British Dependent Territories to British "Overseas" Territories (in 1998) so that the UK government may exert greater control over its "wayward" tax haven progeny (Bermuda, BVI, Caymans, Gibraltar, Turks & Caicos).

The Channel islands of Jersey and Guernsey are also under attack, as is the Isle of Man. There will be a "trickle-down" effect from the EC Commission, to their Member States, to their Overseas Territories, and the UK Government has not ruled out introducing legislation for the Channel Islands - it merely states that to legislate would be "unprecedented". Accordingly, Jersey and Guernsey have succeeded in negotiating themselves off the unilaterally-imposed OECD ‘blacklist’, but at great cost to their product base and the effectiveness of their, formerly excellent, low-tax regimes.

Meanwhile, the OECD has drawn up a blacklist of "Tax Havens" which include jurisdictions outside the scope of the EU, in an attempt to restrict the influence of these popular low tax, exchange control-free areas. It should, of course, be noted that Mauritius has NOT been placed on this OECD blacklist of "Tax Havens"


Why Mauritius is Different and is the Offshore Jurisdiction of the Future?
Compare Mauritius with any other significant offshore jurisdiction, and you will find at least one of the following fundamental differences, in that Mauritius:

• Is not a dependent or "overseas" territory of another country. It is an independent, sovereign country able to form its own internal and international policies in accordance with the wishes of its own parliament.
  
• Is not a member (or applicant member) of the EU, and is not subject to EU regulation or pressures.
  
• Is not on the OECD "blacklist" of tax havens (nor the FATF blacklist).
  
• Is not a member of the OECD, and is therefore not bound to accept its "consensus" recommendations and rulings.

Already, there is a significant shift of interest towards Mauritius from the traditional low tax jurisdictions and this is an inevitable and continuous trend in the search for suitable quality locations offering low tax features outside the EU. Therefore, anyone using Mauritius is in good company, as the "big five" accountancy firms are already here, and investors include the likes of Merrill Lynch, JP Morgan, Morgan Stanley, Dresdner Bank, Chase Manhattan Bank, Schroders, Guiness Flight, Jardines, etc.

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