Overview of the Voluntary Disclosure Incentive Scheme for Foreign Assets (VDIS-FA)
The Mauritius Revenue Authority (MRA) has announced the activation of the Voluntary Disclosure Incentive Scheme for Foreign Assets (VDIS-FA), following amendments introduced by the Finance (Miscellaneous Provisions) Act 2019. This scheme provides an opportunity for individuals and entities who have acquired assets abroad through under-declared or undeclared income to regularise their tax affairs without facing penalties or interest, provided they meet specific conditions.
Scope and Purpose of the Scheme
The primary objective of the VDIS-FA is to encourage taxpayers to voluntarily disclose previously undeclared foreign assets and income. It aims to enhance tax compliance and broaden the tax base by allowing taxpayers to rectify their tax filings in a transparent manner. The scheme is particularly relevant for persons who have acquired foreign assets from income that was not fully declared or was under-declared in Mauritius.
Operational until 31 March 2020, the scheme offers a window within which eligible taxpayers can submit their disclosures. The scheme's legal basis stems from the recent amendments to the Income Tax Act, which facilitate this voluntary compliance initiative.
Who Is Eligible?
Any individual or corporate taxpayer who has acquired foreign assets using income that was not fully declared in Mauritius can avail themselves of the scheme. This includes persons who:
- Have undeclared foreign bank accounts, investments, or properties.
- Have used unreported income to acquire assets abroad.
- Are seeking to regularise past tax obligations related to foreign assets.
It is important to note that the scheme is designed for those who genuinely wish to correct their previous tax filings and avoid penalties, provided they comply with the scheme's conditions.
Key Conditions and Benefits
Taxpayers opting for the VDIS-FA will benefit from significant incentives, including:
- Complete waiver of penalties associated with undeclared or under-declared foreign assets and income.
- Waiver of interest charges on the outstanding tax liabilities related to these assets.
However, to qualify for these benefits, applicants must:
- File a voluntary disclosure with the MRA before the scheme's deadline.
- Fully cooperate with the tax authorities during the disclosure process.
- Declare all relevant foreign assets and income accurately and comprehensively.
- Pay the full amount of tax owed based on the disclosed assets.
Procedure for Disclosure
Taxpayers interested in participating in the VDIS-FA should prepare their disclosures meticulously. The process involves:
- Completing the relevant declaration forms, which may include details of foreign assets, income, and supporting documents.
- Submitting the disclosure through the official channels, which is facilitated via the MRA’s online portal or in person at the Ehram Court, Port-Louis.
- Ensuring full transparency and accuracy to benefit from the scheme’s incentives.
While the official communication emphasizes online submission, taxpayers are advised to consult the MRA’s website for detailed guidance and any updates on the procedural requirements.
Important References and Contact Details
For further information, taxpayers are encouraged to visit the Mauritius Revenue Authority’s official website at www.mra.mu. The website provides comprehensive guidance on the scheme, including detailed instructions and the necessary forms.
Contact details for the MRA are as follows:
- Address: Ehram Court, Cnr Mgr. Gonin & Sir Virgil Naz Streets, Port-Louis, Mauritius
- Phone: +230 207 6000
- Fax: +230 211 8099
- Email: headoffice@mra.mu
Taxpayers are advised to act promptly, as the scheme’s deadline is set for 31 March 2020, to benefit from the full incentives offered under the scheme.
Conclusion
The VDIS-FA represents a significant opportunity for individuals and entities with undeclared foreign assets to regularise their tax position in Mauritius. By availing themselves of this scheme, taxpayers can achieve compliance with reduced legal and financial risks, fostering a culture of transparency and fiscal responsibility. It is essential to adhere strictly to the scheme’s conditions and deadlines to maximize benefits and ensure a smooth resolution of past tax obligations.
