Supreme Court of Mauritius rules on timing of deduction for passage benefits and application of deemed interest income on interest free loans

On 21 February 2023, the Supreme Court (SC) of Mauritius issued its judgment in the tax case of Innodis Ltd (the appellant). This was a long-awaited judgment following a ruling issued by the Assessment Review Committee (ARC) on 26 May 2016.

The ARC ruled in favor of the Mauritius Revenue Authority (MRA) on: (a) whether passage benefits (cost of air travel for employees) is deductible for corporate tax purposes even if the employees have not yet travelled; and (b) the application of a deemed inter…