Clampdown threat on UK tax havens

Date: 23rd June 2008

There are concerns that India could threaten the UK tax havens of Cyprus and Mauritius, it has been claimed.

According to reports by the Herald, the concern has been expressed by business leaders in the UK, following rising levels of inflation in India, coupled with budgetary difficulties.

"The India government feels that a lot of dodgy money is round-tripping (to Mauritius and Cyprus). So it is a concern," said Sanmit Ahuja, the director of the India programme at the Commonwealth Business Council (CBC)

Sir Thomas Harris, vice chairman of Standard Chartered, added: "The tax situation in India is now very serious. They always ran a fiscal deficit. That situation has deteriorated."

Recently released data shows that inflation levels in India have now reached a level of 11.5 per cent.

Established in 1997, the CBC operates in a number of areas, including trade, investment and public private partnerships.