Fiscal Investigations

One of the functions of the Mauritius Revenue Authority is to combat fraud and other forms of tax evasion. To achieve this objective, the Fiscal Investigations Department (FID) has been set up by virtue of Section 3(4) of the MRA ACT 2004.

Fiscal Investigations Department (FID) conducts investigations into potential tax-evasion cases, collects evidence relative to these cases, raises assessments and recommends prosecution for certain types of offences.

For the purpose of ascertaining the tax liability of a person, Section 15 of the MRA Act also empowers the Fiscal Investigations Department (FID) to:

  • enter any premises where any business is carried out;
  • require any person to produce any record, bank statement or other document
  • make a copy of any record, bank statement or other document found on premises
  • retain or seize any record, bank statement or other document

Anti-Money Laundering / Combating the Financing of Terrorism (AML/CFT)

  1. Following the publication of the Mutual Evaluation Report on Mauritius in July 2018 which assessed the level of technical compliance and effectiveness of Mauritius’ AML/CFT system with the Financial Action Task Force (FATF) standards, recommendations were formulated on how the system could be strengthened.

  2. The key recommendations for MRA were as follows:

    1. Make more effort to conduct parallel ML investigations alongside investigation of predicate offences.

    2. Investigate and prosecute tax evasion as a predicate offence of ML and not just concentrate on tax assessment and revenue collection.

  3. In line with the above, in February 2020, the AML/CFT Unit has been set up within the Fiscal Investigations Department (FID) to identify, investigate and prosecute tax evasion cases having a money laundering limb. MRA works in close collaboration with other Law Enforcement Authorities (LEAs) to assist them in the common objective to deter money laundering, as recommended by the Financial Action Task Force (FATF).

  4. The objectives of the Unit are to:

    1. Carry out investigation into cases suspected of tax evasion;

    2. Refer cases of tax offences to LSD for prosecution;

    3. Refer cases of Money Laundering and Financing of Terrorism for Money Laundering (ML) and Terrorist Financing (TF) investigations to ICAC and other Law Enforcement Agencies (LEAs) respectively and for prosecution if applicable; and

    4. Comply with the FATF Recommendations and other international standards as regards investigation and prosecution of tax evasion cases.

  5. Amendments have been brought to the Mauritius Revenue Act by the Finance Act 2021 so that information in relation to money laundering offences will now be exchanged with the Mauritius Police Force (MPF), the Integrity Reporting Services Agency (IRSA) and the Asset Recovery Investigation Division (ARID).

  6. The MRA has also signed Memorandums of Understanding with the Financial Services Commission (FSC), the FIU and ICAC to facilitate exchange of information and referral of cases.

  7. The regulatory and supervisory bodies falling under the Financial Intelligence and Anti-Money Laundering Act (FIAMLA), such as the Corporate and Business Registration Department (CBRD), the FSC amongst others also share and exchange information with the MRA in suspected cases of tax evasion.