The Maldives Inland Revenue Authority (MIRA) has requested the Prosecutor General’s Office to initiate criminal proceedings against two companies suspected of tax evasion. These companies were major providers of PCR testing services in the Maldives during the COVID-19 pandemic. In a press release, MIRA identified the entities as Pioneer Maldives Private Limited and Island Health Solutions Private Limited, stating that a formal request for investigation and prosecution has been submitted following evidence of fraudulent tax practices.
The investigation was launched after MIRA identified significant discrepancies in the income tax returns filed by these companies, where taxable income was substantially underreported. MIRA noted that throughout 2020, 2021, and 2022, Island Health Solutions Private Limited provided services through its “Pearl Medical Center” clinic in addition to PCR testing, yet failed to report the full revenue generated from these operations.
Furthermore, MIRA highlighted that Pioneer Maldives Private Limited was among the earliest providers of PCR testing services and conducted extensive operations in 2020 and 2021. However, the total income derived from these services was omitted from the financial statements and income tax returns submitted to the Authority. According to MIRA, Island Health Solutions Private Limited failed to disclose MVR 31.9 million in taxable income for the period 2020–2022, while Pioneer Maldives Private Limited omitted MVR 102.7 million for 2020 and 2021.
Following audits conducted as part of the investigation, MIRA has ordered Island Health Solutions Private Limited to pay an additional MVR 4.3 million in taxes, and Pioneer Maldives Private Limited to pay MVR 23.7 million. In addition to the corporate entities, MIRA has sought charges against Dr. Ikleel Shareef, who serves as a director for both companies, and Dr. Ali Abdulla Latheef, a director of Island Health Solutions Private Limited, for their primary roles in the matter. Furthermore, prosecution has been requested against Ali Fayaz, who is accused of knowingly preparing fraudulent financial statements and tax returns for the two companies.
MIRA encourages the public to report any suspected tax-related offenses, fraud, or deception by submitting the “MIRA 918 – Complaint Form.
