MAURITIUS Law and Practice Contributed by: Sameer K Tegally, Sonia Xavier and Ashvan Luckraz, Venture Law
5.7 Anti-Evasion Rules There are no controlled foreign company rules under Mauritian tax legislation. Additionally, the Income Tax Act 1995 provides for certain measures relating to anti-avoidance provisions in relation to interest on debentures issued by reference to shares, excess of remu - neration or share of profits, excessive remu - neration to shareholders or directors, benefit to shareholders and excessive management expenses. 5.8 Tariffs No response has been provided in this jurisdic - tion. Under the Competition Act 2007 (the “Act”), a merger situation is defined as ”the bringing together under common ownership and control of two or more enterprises of which one at least carries its activities, in Mauritius, or through a company incorporated in Mauritius.” Whilst there is no statutory obligation for parties to a merger to inform, notify or seek the approv - al of the Competition Commission of Mauritius (CCM), they are entitled under the Act to vol - untarily inform and notify the CCM of a merger situation and to seek the CCM’s guidance as to whether: • the proposed transaction has created, or is likely to create, a merger situation; • the enterprises that are party to the merger situation meet the statutory market share threshold in order to be subject to review by the CCM; and 6. Competition Law 6.1 Merger Control Notification
• the existing or proposed merger situation has resulted in, or is likely to result in, a substan- tial lessening of competition in Mauritius. Besides voluntary notification, the Act provides that merger situations shall systematically be subject to review by the CCM in any of the fol - lowing circumstances: • where all the parties to the merger, following the merger, will together supply or acquire 30% or more of all the goods and services on the market; • where one of the parties to the merger alone and prior to the merger supplies or acquires 30% or more of the goods or services of any description on the market; or • where the CCM has reasonable grounds to believe that the creation of a merger situa - tion has resulted in, or is likely to result in, a substantial lessening of competition within any market for goods and services. Hence, where a merger situation does not fall under the market share thresholds set under the Act and does not lead to a substantial less - ening of competition, there is a possibility for enterprises to proceed with the merger without involving the CCM at all. On the other hand, the commissioners of the CCM may take action if they find that the merger results, or is likely to result, in a substantial lessening of competition. This includes the power to require divestments or to block the merger if need be. Although it is not mandatory for merger par - ties to notify their anticipated merger, merger parties are strongly encouraged to conduct a self-assessment to ascertain if it is necessary to apply for such guidance. Businesses consid - ering a merger would be well advised to seek the CCM’s advice and possibly even undergo
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