Hope Travels referred for prosecution over tax fraud

Hope Travels, a company providing launch ferry services in Shaviyani and Noonu atolls, has been accused of deliberate tax fraud. The Maldives Inland Revenue Authority (MIRA) has referred the case to the Prosecutor General’s Office for criminal investigation and prosecution.

The company is alleged to have submitted false information in its GST returns from July 1, 2020 to May 31, 2023, and in its income tax returns for the 2020 and 2021 tax years. MIRA stated that the investigation was based on suspicions that the tax evasion was intentional.

The investigation found that MVR 29 million in income had not been declared in income tax filings over the two years. Moreover, Hope Travels, which operates under Hope Holdings Partnership, was not registered with MIRA for GST for a long time, despite being operational.

MIRA discovered that 89% of the total income generated by the business was not reported in the GST returns. Specifically, the business failed to declare MVR 54 million in revenue and over MVR 3 million in GST.

As part of the investigation, MIRA searched the taxpayer’s office and obtained statements related to the alleged offenses.

Following the probe, MIRA filed charges against:

1. Shahud Ibrahim Manik, a partner in the Hope Holdings business

2. Mohamed Ali, a senior staff member of the company.

MIRA emphasized that under Article 64 of the Tax Administration Act, it is a criminal offense to intentionally evade taxes or assist another person in doing so. The authority affirmed that it would take strict action against anyone involved in such offenses.