Download Creation of High Net Worth Individual Unit

MAURITIUS REVENUE AUTHORITY
Creation of a High Net Worth Individual Unit
(HNWIU)
Within the MRA, the Large Taxpayers Department (LTD) deals with cases of companies having a
turnover of Rs 100 million and above. As for individuals, the MRA has set up a High Net Worth
Individuals Unit (HNWIU) which will deal with high net worth individuals (HNWIs).
A High Net Worth Individual (HNWI), at its simplest, can be defined as a very wealthy person. He can be
at the top of the wealth or income scale. A HNWI can be identified from the assets that he owns such as
big properties, luxurious cars, expensive pleasure boats / yachts, mansions, villas and luxurious
apartments and the lavish life style that he leads.
Many tax authorities worldwide, e.g. Australia, U.K, New Zealand, South Africa and Indonesia, have
moved towards the creation of HNWIUs to deal with HNWIs. They have developed different structures
and various techniques to manage the high net worth population in the most efficient ways.
Wealthy individuals represent a small proportion of society, but there are several important reasons why
governments around the world are interested in their tax behaviour:
First - the wealthiest members of society already pay a relatively large proportion of the income
tax that governments collect. According to OECD report, in the United States, for example, the top
1% of taxpayers account for about 40% of total federal income, while in Germany, the top 0.1% of
taxpayers pay 8% of total income tax.
Second - in this difficult economic situation, demanding taxes from the wealthy is a fair way of
dealing with wealth inequality and supporting the poorest members of society.
Third - HNWIs generally have more complex financial affairs than other sections of society and
thus, require more attention. The wealthy are often internationally mobile, have multiple business
interests and spread their assets across a wide range of financial products such as trusts,
foundations, use of nominees behind real owners, offshore companies etc.
Fourth - HNWIs are more likely than other groups in society to engage in aggressive tax
planning, simply because they have more complex financial affairs and are more likely to be able
to access the services of tax specialists. The effect of their compliance behaviour also has an
impact on the overall integrity of the tax system.
It is, therefore, important for the Government to know at all times the level of compliance for this
particular segment of taxpayers and whether they are paying their fair share of tax. At the same time, we
also wish to deliver quality service to that category of taxpayers.
Ehram Court, Cnr Mgr. Gonin & Sir Virgil Naz Streets, Port Louis, Mauritius
Tel: +230 207 6000
Hotline: +230 207 6010
Email: [email protected]
Website: www.mra.mu
Fax: +230 207 6041