The Supreme Court judgment delivered on 08 January 2020 in the case of Mauritius Telecom Ltd and Cellplus Mobile Communications Ltd (together, "the MT Group") has shed light on a number of interpretation issues. The case was led by Senior Counsel Rishi Pursem who was assisted by Dheerend Puholoo, Tax Leader at PwC Mauritius.
As a background, the Solidarity Levy on telephony service providers was introduced in 2009 and is calculated at the rate of 1.5% of turnover and 5% of book profit in accordance with Section 50I of the Income Tax Act 1995 (“ITA”).
The case dealt with the interpretation of the terms ‘book profit’(“BP”) and ‘turnover’ for the purpose of computing the solidarity levy.
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