President Ibrahim Mohamed Solih on Wednesday ratified the third amendment to the Tax Administration Act, which allows Maldives Inland Revenue Authority (MIRA) to raise civil cases at court in order to collect tax-related fines.

Passed by the parliament on November 29, the new amendment introduces reforms and guidelines on:

- Avoiding double taxation

- Submission of country-by-country reports

- Court process of recovering taxes

- Collection and storage of taxpayers' information

- Grounds upon which taxation authorities can seek, use and share information on the beneficiaries of a business entity

- Tax appeal process

With this reform, the provision enables MIRA to collect payments on behalf of the government in addition to tax from individuals or legal entities as per regulations or agreements.

According to the amendment, signed documents from the Commissioner General of Taxation which include a taxpayer's name, address and the details of the outstanding tax amount would be considered legal proof.

Furthermore, it details guidelines under which sensitive information can be exchanged with foreign countries or regional tax regulatory bodies as per international conventions and agreements signed by Maldives.

The President's Office noted that the newly ratified Act is now published in the Government Gazette.