Maldives Inland Revenue Authority (MIRA) has said it enforces tax laws equally across businesses, regardless of their type or size, following remarks by Maldives Monetary Authority (MMA) Governor Ahmed Munawar that the tax authority should audit resorts as well as corner shops.
In a statement today, MIRA said its primary responsibilities under the Tax Administration Act include implementing tax laws and policies and collecting taxes owed to the state.
The authority said it was legally required to ensure taxpayers calculate and pay their taxes in accordance with the law.
“MIRA has always been committed to enforcing the law equally among all parties, regardless of the type and size of the business,” the statement said.
MIRA said it selects businesses for audits through a risk based compliance management framework and conducts audits across both tourism and non tourism sectors.
The authority added that a significant proportion of its revenue comes from the tourism industry.
The statement followed comments by Governor Munawar yesterday that MIRA should audit resorts as well as small shops as part of efforts to address the country’s dollar shortage.
Speaking before Parliament’s Budget Review Committee, Governor Munawar said the tourism industry generates USD 5.9 billion annually, of which USD 3.8 billion enters the country’s banking system. He said all foreign currency earned in Maldives should enter the domestic banking system and that the matter was being closely monitored.
Responding to a question from Hulhumale' South MP Dr Ahmed Shamheed about difficulties in obtaining US dollars, the governor said that although collecting taxes on business profits was MIRA’s responsibility, some resorts were not paying the taxes they owed.
MIRA said it was also working under a compliance improvement plan and provided support to businesses to encourage tax compliance.
The authority said small businesses receive concessions under the tax system, including simplified requirements for accounting, auditing and filing tax returns.
It added that while its approach focuses on helping businesses meet their tax obligations, enforcement action is taken against those who deliberately fail to pay taxes in accordance with the law.
