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Programme Cohort

BSc (Hons) Banking and

International Finance

BBIF/11/PT (Jan)

BBIF/12/FT

(Jan 12)

Examinations for 2012 – 2013 Semester II /

2013 Semester I

MODULE: OFFSHORE PRACTICE AND ADMINISTRATION MODULE CODE: ACCF 2305 Duration: 2 Hours

Instructions to Candidates: 1. This question paper consists of Section A and Section B.

2. Section A is compulsory.

3. Answer any two questions from Section B.

4. Always start a new question on a fresh page.

5. Total Marks: 100.

This question paper contains 4 questions and 4 pages.

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SECTION A: COMPULSORY

QUESTION 1: (40 MARKS)

“India has been seeking to revise the Double Taxation Avoidance Convention

(DTAC) with Mauritius to plug what it says is tax abuses by foreign companies but at

the same time has accused Mauritius of being unwilling to help. Hence, the

Government of India wanted to introduce the General Anti Avoidance Regulations

(GAAR), but then postponed its introduction to April 2016.”

(a) What would be the impact of the GAAR legislation on the Offshore Sector in

Mauritius? (8 marks) (b) Some investors have left the Mauritius Offshore for Singapore. What are the

advantages offered in Singapore that Mauritius cannot afford to give to those

same foreign investors, especially concerning the DTAC and GAAR?

(8 marks)

(c) Do you think that round-tripping investors really made an abuse of the DTAC

signed between Mauritius and India? (8 marks)

(d) Do you think that Mauritius, with the help of economic powers like UK and the

USA, can influence India to reach a consensus on the investment route

without damaging the credibility of our offshore and re-establish confidence

among foreign investors? (10 marks)

(e) What are the threats that the Mauritius Offshore will have to address in

future? (6 marks)

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SECTION B: ANSWER ANY TWO QUESTIONS

QUESTION 2: (30 MARKS) “Under the Financial Services Development Act 2001 the Financial Services

Commission (FSC) took over the functions of the Stock Exchange Commission, the

Controller of Insurance and the Mauritius Offshore Business Activities Authority

(MOBAA). The Financial Services Commission is the regulator for all non-banking

financial activities, including global business activities (formerly known as offshore

activities), insurance business and the securities market.”

(a) What do you understand by the term global business?

(5 marks)

(b) How far do you agree that the FSC is a better regulator than the MOBAA?

(5 marks)

(c) Differentiate between Global Business Company 1 and Global Business

Company 2? (20 marks)

QUESTION 3: (30 MARKS)

“Mauritius is a strategic Global Business centre situated in the Indian Ocean region.

It offers an open and financially sound economy, located between Asia and Africa,

and the success of its economy is largely a result of its political and socio-economic

stability. It is also recognised worldwide as an excellent jurisdiction for offshore

business. The country’s adoption of international best business practices is

acknowledged by international organizations such as the Organisation for Economic

Cooperation and Development (OECD), the Financial Action Task Force (FATF) and

the World Bank (WB).”

Why is Mauritius the preferred offshore jurisdiction of choice for many investors?

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QUESTION 4: (30 MARKS) Write short notes on any three of the following:

(a) Offshore Trust Administration (10 marks)

(b) Offshore Pension Fund (10 marks) (c) Offshore Collective Investment Funds (10 marks) (d) Offshore Investment Services (10 marks)

***END OF QUESTION PAPER***