Alteo Energy Ltd (Respondent) v Director General, Mauritius Revenue Authority (Appellant) (Mauritius)

Case summary

Case ID

JCPC/2025/0103

Jurisdiction

Mauritius

Parties

Appellant(s)

Mauritius Revenue Authority

Respondent(s)

Alteo Energy Limited

Issue

Is the First Respondent entitled to a partial tax exemption on interest income received from certain loans?

Facts

The First Respondent (“Alteo”) is a company which forms part of the Alteo Group. While the Alteo Group principally trades in the sugar industry, Alteo itself derives its income (a turnover of Rs 817,200,269) mainly from selling electricity to the Central Electricity Board. In the relevant tax year, in addition to this income, various borrowers paid interest to Alteo under loans that Alteo had provided (a turnover of Rs 2,151,622). Alteo sought to take advantage of a partial income tax exemption on the interest income pursuant to section 7(2) and Item 7 of Sub-Part B, Part II, Second Schedule, Income Tax Act 1995 (“Sub-Part B”). Those provisions relevantly state that 80% of interest derived by a company other than a bank shall be exempt from income tax, provided that the company satisfies certain “conditions relating to the substance of its activities” set out in Regulation 23D(2) of the Income Tax Regulations 1996. The relevant condition for the purposes of this appeal is that the company “carries out its core income generating activities in Mauritius”. The appeal relates to the construction of two parts of this legislation. First, the condition contained in Regulation 23D(2)(a)(i), namely that the company “carries out its core income generating activities in Mauritius” (“the CIGA condition”). Secondly, the reference in Sub-Part B to “the substance” of the company’s activities. The Mauritius Revenue Authority considered that Alteo was not entitled to the partial income tax exemption. The Assessment Review Committee upheld that decision on the basis that the CIGA condition was not satisfied. The Supreme Court of Mauritius overturned that decision. The Director-General of the Mauritius Revenue Authority now appeals to the Privy Council.

Date of issue

7 October 2025

Case origin

Appeal As of Right

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