Ali Latheef and Ikuleel charged with tax fraud, PG seeks maximum penalties

Dr Ali Abdulla Latheef and Dr Ikuleel Shareef have been charged and taken to court for allegedly intentionally evading income tax earned from large-scale PCR testing services provided during the Covid-19 pandemic.

The cases were forwarded to the Prosecutor General’s Office by the Maldives Inland Revenue Authority (MIRA), which accused the two doctors of deliberately under-reporting taxable income in tax returns filed on behalf of Pioneer Maldives and Island Health Solutions.

The Prosecutor General’s Office said three counts of intentional tax evasion have been filed against Dr Ali Latheef, while five counts have been filed against Dr Ikuleel.

In addition, Pioneer Maldives has been charged with two counts of intentional tax evasion, and Island Health Solutions with three counts of intentional tax evasion and one count of obstruction of law enforcement and other government activities.

Ali Fayaz, who prepared the financial statements and tax returns for the two companies, has also been charged with five counts of intentional tax evasion.

The PG’s Office said charges were filed based on each individual’s role within the companies. Dr Ikuleel is the majority shareholder of both Island Health Solutions and Pioneer Maldives, while Dr Ali Latheef holds a 50 percent stake in Island Health Solutions and played a key role in managing its operations. The PG’s Office said Dr Ali Latheef also holds shares in Pioneer Maldives and was involved in the companies’ operations during the pandemic.

The Prosecutor General’s Office said it intends to seek the maximum penalties prescribed by law if the defendants are convicted.

In a statement issued yesterday, MIRA said audits found that both companies had significantly under-reported income during the period of peak demand for PCR testing services. According to MIRA, the audits identified unpaid tax liabilities amounting to MVR 4.3 million for Island Health Solutions and MVR 23.7 million for Pioneer Maldives.