Welcome to the 2nd edition of The Compass Chronicle for 2008. It is scary to think that we are already half way through the year; where has the time gone ? It seems that the frantic start of the year has continued for the Inter-Ocean group and we are already looking forward to a very busy and successful 6 months ahead.

Inter-Ocean Management Limited has been incredibly busy in the past 6 months, not only with new clients, but also with the re-engineering of a number of its business processes to make it a more efficient, effective and streamlined business. With the continued negative perception in South and Southern Africa, Mauritius continues to receive a flood of enquiries into how to put a “Plan M” in place!!! With emmigration to the UK and Australia becoming increasingly more difficult, Mauritius is becoming a sort after place of residence. With its progressive tax laws, consisent fiscal policies and the further opening up of the property market – as well as its proximity to SA, Mauritius continues to market itself as a very attractive place of residence.

IRS Management Services Ltd has also been particularly busy and as mentioned in the last edition of the newsletter, the new La Balise project is well underway with a market launch imminent. Of course some of the amendments to the Finance Bill may have some effect on those people purchasing properties (please see the brief article entitled “The Mauritius Finance Bill 2008 – 2009”), however in general the IRS schemes continue to be well received.

July also saw the release of the new Mauritius Budget by the Minister of Finance. Again as with previous years, the Budget continues to provide an attractive base for corporates and individuals alike, as well as a number of commitments and initiatives to developing Mauritius’ infrastructure in light of the growth in people moving businesses or immigrating there.

Lastly in light of its ever increasing client base and broad range of services it provides, Inter-Ocean took the opportunity to get involved in some above the line marketing, with a full page advert in the Financial Mail supplement, which was published in SA on the 11^th July 2008. The supplement took a broad look at Mauritius, with a particular emphasis on the IRS schemes, as seen through the eyes of Ian Fife, an independent Financial Mail journalist. To see the on-line articles please click on the link and the advert, please see attached: http://free.financialmail.co.za/report08/villas08/index.html

In this edition, you will find articles on:

• SA Income Tax Amendments – A very high level look at new measures put in place to increase the controls against anti avoidance.

• Mauritius 2008 – 2009 Finance Bill – A brief synopsis.

• Client Banking Transactions – Practical Notes –A brief summary of what is required in order for payments to be processed in light of stricter banking controls.

• New Treasurer – Enhancing our Client Treasury Services.

• Air-Tec: Contract Flying – A Roller Coaster of Emotions

• General news and updates

We hope you enjoy reading the newsletter, feel free to distribute to friends and colleagues and if you have any comments or feedback, please address them to brendon.jones@inter-oceanmgt.com

Mauritius 2008-2009 Finance Bill

The Mauritius Budget for the year 2008-2009 was presented by the Finance Minister, Mr. Rama Sithanen on the 6^th June 2008. Since then the Budget has been ratified in Parliament and now awaits the President’s consent.

South Africa Income Tax Amendments

A few amendments to the South African Income Tax Act have been enacted recently. The enactments relate to the Secondary Tax on Companies which is commonly referred to as STC, which is a tax payable on the declaration of dividends by a South African resident company. In addition to STC, there is also new treatment of Intellectual Property and Depreciation.

Client Banking Transactions – Practical Notes

The timely and accurate execution of client payments, which are effected by our Accounting and Infrastructure department, is paramount to the businesses under our management, however with banks tightening up their processes and controls in the fight against money laundering etc, receiving the correct instructions and supporting documentation is critical.

New Treasurer – Enhancing Our Client Treasury Services

Adeellah Emambokus joined Inter-Ocean Management Limited in June this year as the company Treasurer. Her prior experience with another Offshore management company based in Mauritius, made her an ideal candidate to manage, organize and provide quality Treasury services to both internal and external clients.

Contract Flying – A Roller Coaster of Emotions

Contract flying on the Let 410/420 in Africa is a highly rewarding, challenging and interesting occupation and of course, being Africa, also at times somewhat frustrating!

Additional News                                                                                                 

Staff Day Out

Funnies