MP Ziyad seeks leniency on tax delays tied to gov arrears

Individuals who can't pay taxes due to government arrears need a solution as well, stated Vaikaradhoo constituency MP Hussain Ziyad (Fittey) today.

MP ZIyad has voiced today during the Parliament debate concerning greater powers to be given to Maldives Inland Revenue Authority (MIRA) when enforcing tax payments, that these instances must be dealt with equality in mind.

The most important thing he highlighted on the topic and which is not in the bill is the relief available to those did not receive the money due from the state and subsequently those who are guilty of not paying the taxes that is owed to the state.

Ziyad went on to say that the bill did not cover what should happen if an individual did not receive funds from the government.

"My hope is that some sort of solution is to come out of this, even in the committee discussion stages. Not everyone are thieves. Some people do nefarious plotting as well. These are human beings. And there will be people who have ill intentions. In all honesty, there will be people who wouldn't be able to pay taxes if they don't get the funds owed from the government," Ziyad said.

"I wholeheartedly believe there must be a solution for them."

Ziyad's other concern is the distinction between small businesses and large businesses. He stated that if a problem arises, and if it's a sizeable issue with a sizeable amount of money, there will be delays in bringing a close to the issue.

"Justice is not delivered in courts fairly. There are different scales being used to weigh different problems. If there is a big case in the courts, it takes so much time. If a resort doesn't pay taxes, so much time passes. If it's a corner shop, action is taken swiftly to close it down," Ziyad says when referencing the distinctions between big businesses and small businesses.

But he said the issue does not lie with the tax authority, MIRA. There is a problem with the whole system.

"I believe the entire system should be addressed," he went on to say.

- If any offence with intention to evade tax is committed, the sentence for such an act is to be increased from a house arrest term of three months to a year, to jail time spanning three months to two years.

- If a party fails to pay their tax within the specified timeframe, a six month prison sentence is set, along with a MVR 250,000 fine.

- A two-fold increase in the 0.05 percent penalty that begins upon the crossing of the deadline of tax payment is also listed in the bill, with the percentage penalty being incurred daily.

- The bill also lists changes to the chapter of filing an appeal when approaching the Tax Appeal Tribunal, concerning payable tax to MIRA. Thus, the bill states that an appeal can be filed with the tribunal only after payment to MIRA of at least 25 percent of the amount that has been objected to.

- Amendments to the law have also been outlined to give MIRA more control over steps that would be taken when it comes acquiring tax payments from tax evaders, such as seizure of services provided by public companies and checking bank account details.