President Dr. Mohamed Muizzu has ratified amendments to the Tax Administration Act at a special ceremony held at the President’s Office. The bill, which was passed by Parliament the previous week, was ratified at this occasion.
Under these amendments, the Maldives Inland Revenue Authority (MIRA) has been granted the authority to assess taxes on parties who fail to submit tax returns, with the relevant procedures now codified in law. The power to pursue outstanding government revenue through legal proceedings has also been transferred from the Attorney General to MIRA. Furthermore, the procedures governing tax audits and investigations have been revised, tax offences have been defined in greater detail, and penalties for such offences have been increased.
As stipulated in the amendments, obstructing, intimidating, bribing, or otherwise influencing the Commissioner General of Taxation constitutes a criminal offence, carrying a fine of MVR 200,000. The law further clarifies that the disclosure of information pertaining to parties who fail to submit tax returns or who default on tax payments does not constitute a breach of confidentiality obligations.
