Question
MNO Co Ltd (resident of UK) runs his enterprise in UK. The business profit in UK amounts to 500,000. In Mauritius MNO Co Ltd runs
MNO Co Ltd (resident of UK) runs his enterprise in UK. The business profit in UK amounts to 500,000. In Mauritius MNO Co Ltd runs a shop in a shopping mall. Two employees of this shop sell MNO Companys goods to customers in Mauritius. Profits attributable to that shop amount to 200,000. Furthermore, MNO Co Ltd sells goods directly to customers in Mauritius, if they order goods via the internet. Such profits amount to 50,000. Required: By referring to the relevant provisions of the Mauritius-UK Tax Treaty explain how the treaty would apply in the case of MNO Co Ltd indicating clearly which country will have the right to tax its profit. (5 marks)
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