1. Investigations and tax audits
    1. 1. What usually triggers a tax investigation/audit in your jurisdiction and which procedures can be used to limit or exclude a tax audit?
    2. 2. What is the general tax statute of limitations period in your jurisdiction (i.e. how far back can you be audited and reassessed before the tax administration becomes time-barred)?
    3. 3. Do the tax authorities have broad powers when they investigate or are they more limited? For example, can they operate raids, seizures, requests to third parties (like banks and employers) or any other strategies?
    4. 4. What are the rights of taxpayers and how can they defend themselves (with or without assistance) during a tax audit? Can they refuse to disclose certain information during audits (e.g. covered by confidentiality)?
    5. 5. What are possible tax penalties in your country? Are there also any payment interest and/or criminal charges? Can penalties be contested/negotiated?
  2. Administrative and Judicial Phases (first instance + appeals)
    1. 6. What are the typical steps and duration of administrative (i.e. pre-litigation before the tax administration) and judicial (i.e. before the tribunal/court system) tax litigation procedures in your jurisdiction?
    2. 7. Are there interim measures (i.e. deferral of tax payment while a dispute is pending) and/or alternative dispute resolution mechanisms?
    3. 8. Are tribunals and/or courts specialised in tax matters? Is there a formal appeal structure for tax disputes? How many levels are there (first instance, appeals, supreme court) and how long does each generally take?
  3. Trends and Tips
    1. 9. What recent hot topics and/or developments have influenced your tax dispute landscape locally?
    2. 10. In one sentence, as a takeaway, what would you recommend to parties facing a tax dispute in your country?

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Mauritius
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Investigations and tax audits

1. What usually triggers a tax investigation/audit in your jurisdiction and which procedures can be used to limit or exclude a tax audit?

There are no publicly prescribed criteria for conducting audits. Tax audits are conducted on a discretionary, risk-based approach, with larger taxpayers more likely to be audited. Specific events can trigger audits, such as:

  • requests for tax refunds
  • approval from the Mauritius Revenue Authority (MRA) for liquidation or VAT deregistration
  • removal from the company register.

The MRA may also focus on certain sectors (e.g. gambling) or issues (e.g. partial exemption eligibility). Tax investigations may also be triggered from information obtained by the MRA pursuant to an international exchange of information between tax authorities.

2. What is the general tax statute of limitations period in your jurisdiction (i.e. how far back can you be audited and reassessed before the tax administration becomes time-barred)?

The MRA is required to comply with the statutory time limits for raising an assessment.

For personal and corporate income tax, the MRA can conduct its investigation pertaining to a period not beyond 2 years preceding the current year of assessment. However, the MRA may assess beyond the above time limit if a tax return has not been filed or a fraud has occurred.

In relation to VAT cases, the MRA shall not, in any taxable period, in relation to the tax liability of a person:

  • require any information, statement or return
  • make any assessment or claim in respect of a period beyond 2 years immediately following the last day of the taxable period in which a return is submitted.

However, the MRA may raise assessments in respect of a period beyond 2 years but not exceeding 4 years immediately following the last day of the taxable period in which the liability to pay tax arose in cases of non-declaration or under-declaration of supplies and overstatement of credit for input tax.

3. Do the tax authorities have broad powers when they investigate or are they more limited? For example, can they operate raids, seizures, requests to third parties (like banks and employers) or any other strategies?

The Director-General (DG) of the MRA has the statutory power to require information not only from taxpayers, but also from third parties such as banks or financial institutions. The MRA may require any person to produce for examination any books, records, registers, bank statements or such information as may be required. For making any assessments or to ascertain the tax liability of a person, any officer of the MRA authorised by the DG may, at any reasonable time, enter premises and inspect information, books, records (electronic or otherwise) or any other information and require copies. Failure to assist or to answer questions by an officer during the inspection may amount to an offence.

4. What are the rights of taxpayers and how can they defend themselves (with or without assistance) during a tax audit? Can they refuse to disclose certain information during audits (e.g. covered by confidentiality)?

A taxpayer or third party who fails to comply with a request for information made by the MRA shall commit an offence and shall, on conviction, be liable to a fine not exceeding MUR 1 million.

The DG can apply for an order from the Judge in Chambers of the Supreme Court, requiring a person to furnish information to comply with a request for the exchange of information with foreign revenue authorities.

5. What are possible tax penalties in your country? Are there also any payment interest and/or criminal charges? Can penalties be contested/negotiated?

Interest and penalties apply if the taxpayer fails to declare and/or pay the tax in due time. Late payment interest (between 0.5-1% per month) and tax fines applied by the MRA may be subject to review by the Assessment Review Committee (ARC). The late payment interest may be waived in whole or in part in certain circumstances, at the discretion of the DG or under specific schemes that may be introduced by the Minister of Finance from time to time. Penalties may also be levied at a rate not exceeding 50% as per the MRA’s statement of practice. Criminal offences may further be punishable by penalties imposed by the court, depending on the nature of the offence.

Administrative and Judicial Phases (first instance + appeals)

6. What are the typical steps and duration of administrative (i.e. pre-litigation before the tax administration) and judicial (i.e. before the tribunal/court system) tax litigation procedures in your jurisdiction?

A taxpayer dissatisfied with an assessment may lodge an objection to the MRA’s Objections, Appeals and Dispute Resolution (OADR) Department within 28 days, together with a payment of 10% of the amount assessed. The OADR Department shall have 4 months from the receipt of objection to issue a determination (maintain, revise or set aside the assessment). Once the notice of determination is issued to the taxpayer, any tax payable in the notice of determination, with penalty/interest, shall be paid within 28 days of the date of determination. If the taxpayer is not satisfied with the MRA’s determination, the taxpayer may, within the same time period, lodge representations with the ARC.

7. Are there interim measures (i.e. deferral of tax payment while a dispute is pending) and/or alternative dispute resolution mechanisms?

A taxpayer may, while the dispute is pending, make an application to the DG for the assessment to be referred to the Alternative Tax Dispute Resolution Panel (ATDR Panel) subject to certain conditions.

The ATDR Panel may require the taxpayer to submit any information or particulars relevant to the application for review. The panel has 6 months to make a decision from the date on which the taxpayer was informed that their application for review had been referred to the ATDR Panel.

8. Are tribunals and/or courts specialised in tax matters? Is there a formal appeal structure for tax disputes? How many levels are there (first instance, appeals, supreme court) and how long does each generally take?

Where a taxpayer is aggrieved by the determination of the MRA, the taxpayer may file their representations with the clerk of the ARC, a specialised tax committee adjudicating on determinations issued by the MRA.

A taxpayer dissatisfied with the decision of the ARC may, within 21 days from the decision of the ARC, lodge with the Clerk of the ARC a written application requiring the ARC to state and sign a case for the opinion of the Supreme Court on the grounds specified in the case.

Once the appeal is heard and judgement is given by the Supreme Court, any party aggrieved with the judgement may, as a final resort, lodge an appeal with the Judicial Committee of the Privy Council of the United Kingdom.

9. What recent hot topics and/or developments have influenced your tax dispute landscape locally?

The Mauritius tax dispute landscape will soon be overhauled with the imminent coming into force of the Mauritius Revenue Tribunal Act. The Mauritius Revenue Tribunal will replace the ARC aiming to bring more efficiency in tax controversies.

In addition, following the changes in law the Qualified Domestic Minimum Top-Up Tax in line with BEPS Pillar 2 has been introduced in Mauritius and shall be applicable as from the year of assessment starting 01 July 2025. The implications of this introduction may lead to multinationals having to review their presence in Mauritius.

10. In one sentence, as a takeaway, what would you recommend to parties facing a tax dispute in your country?

Parties facing a tax dispute in Mauritius should seek early legal and tax advice, maintain transparent and cooperative communication with the MRA, and engage proactively to manage requests and discussions in a timely and well-documented manner.