Maldives Inland Revenue Authority (MIRA) has filed a case against the owners of Kaani Hotels, the largest guesthouse operator in the Maldives, for alleged tax evasion.
The charges have been submitted to the Prosecutor General’s Office, implicating the operators in intentional tax fraud between January 2019 and September 2022. The allegations involve four guesthouses managed by the company in Maafushi including Kaani Palm Beach, Kaani Grand Seaview, Kaani Village, and Kaani Beach.
MIRA’s investigations revealed that Kaani Hotels owed USD 800,000 (MVR 13.3 million) in unpaid taxes.
The audit found that the company had excluded guest details and income from international tour operators and Free Independent Travelers (FITs) in its tax filings for Green Tax, GST, BPT, and Income Tax. These omissions were deemed intentional, with fraudulent information added to tax returns to evade paying tax.
The allegations of tax fraud involve two companies of Kaani Hotels; Kaani Hotels and Tours Pvt Ltd and Asna Investments Pvt Ltd as well as three individuals including two directors of the companies, Abdulla Nasheed and Aminath Asima Saleem, and Aishath Razuna, head of the accounts department.
Kaani Hotels is a major player in the Maldives’ tourism sector. The company operates four guesthouses with a total of 490 beds and is developing a 350-bed hotel in Ukulhas. Kaani Hotels recently expanded into the resort business, acquiring Bodu Finolhu, the largest sandbank in Vaavu atoll for resort development from the Ministry of Tourism.
The company reported USD 4.1 million (MVR 64 million) in revenue in the first four months of this year, making it the highest taxpayer among guesthouse businesses.
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