More good stuff from Reuters
The equatorial island nations of Mauritius and Singapore are competing for the role of preferred gateway for foreign investments into India and other Asian countries.
Think of it as a triangle, not of love, but of lucre.
and then, of course, as we've repeatedly pointed out:
"Just as tax laws can be drafted to fashion loopholes, so too can tax treaties. One of the biggest loopholes involves what is commonly known as “black money” and a circular movement of capital known as “round tripping.”
And there's an interesting statistic in there:
"Since the turn of the millennium about US$55 billion has come via shell companies set up in Mauritius. This is more than 40 percent of the direct foreign investment in India. Tax authorities in New Delhi believe a lot of that investment was black money from India making a roundtrip to Mauritius. Overall the Indian Finance Ministry estimates faux foreign direct investments from Mauritius are costing it $600 million in taxes annually."
We can't do more now than suggest reading the post.