It is a little different between developed countries. In this case, the possibility of double taxation is greater, as investment flows are much more complex. So I think there`s evidence that contracts work. But for an African country, the evidence is not there. It is astonishing to see how many African countries have contracts with Mauritius, given that these agreements present a risk of tax evasion to these countries. Mauritius is an African country and I think it has taken advantage of this status to give it a sense of legitimacy. In the case of Mauricie, it has been difficult for countries to convince Mauricie to include in the treaty the kind of wording you need to prevent it from being used to avoid taxes. Mauritius is reluctant to do so, which would allow African countries to combat tax evasion. Naomi Fowler ■ India and the renegotiation of its double taxation treaty with Mauritius: an update Mauricie is one of many small island states that have recognised that financial services are a sector where they can compete.
It has been decided that the way it will establish it is through a network of tax treaties. The strategy to allow tax avoidance to achieve this is the decision made by the Mauricie. Tax treaties appeared a hundred years ago, when business became more international. Companies began to find that they were receiving tax claims from multiple states for the same money. The idea was that they only had to pay taxes once. States signed these agreements in order to clarify the situations in which one State would receive taxes and in what situation the other State would receive taxes. There is a difference between tax evasion and tax evasion. People often tend to think of tax havens in relation to that secret space where money is hidden. This raises another question: where did these funds go? Some of them may have gone to Singapore.
Inflows from Singapore doubled over the same period. In 2017, Singapore was the second largest source of inflows, with revenue of 20% for $4.5 billion. A year later, that figure doubled to $8 billion, accounting for 40 percent of foreign direct investment inflows in 2018. . .