India-Mauritius Tax Pact Adds New Test
A tax treaty between India and Mauritius now includes a Principal Purpose Test. The test checks whether a deal is set up mainly to gain tax benefits.
पार्श्वभूमी
Context: India and Mauritius have a long-standing tax treaty that has been a major route for foreign investment into India. Governments have added anti-abuse tests like this to stop companies from using treaties just to avoid tax.
बर्निंग पोटॅटो स्कोअर: 29%