The Mauritius government introduced, on 4 May, new penalties for non-compliance with country-by-country (CbC) reporting requirements under the OECD/G20 base erosion profit shifting (BEPS) action plan.
Under the new rules, non-compliance with the Mauritius CbC reporting regulations constitutes an offence that entails a fine not exceeding MUR5,000 (USD141) and imprisonment of a term not exceeding six months. An additional penalty of MUR10,000 will be imposed per month or part of month if the failure to comply persists after the first penalty. This is subject to a maximum of MUR120,000.
A penalty not exceeding MUR50,000 can also be imposed if the reporting entity provides inaccurate information and it is found that the inaccuracy was deliberate on the part of that entity or that the latter was aware of the inaccuracy but failed to inform the Mauritius Revenue Authority.
However the penalties will not apply if the Mauritius Revenue Authority is satisfied that there is reasonable ground for not complying with the regulations or for providing inaccurate information.