Maldives Inland Revenue Authority (MIRA) revealed that the government has yet to receive MVR 197.9 million from various companies in annual taxes and fines.
The tax regulation body stated that 7,089 firms failed to pay annual fee and fines in 2018, including 5,772 companies that the Registrar of Companies had decided to dissolve. MIRA stated that they collective owed MVR 189.6 million to the state.
The 1,317 companies that have not been dissolved owe MVR 8.2 million as taxes.
Under to the Goods and Services Tax Act, companies are mandated to submit annual tax reports even if they did not conduct any business during the year. The Act also states that firms which fail to submit the reports will be fined.
Additionally, MIRA urged companies that are no longer in business to follow the steps in the Companies Act to proceed with dissolution.
Ministry of Economic Development has established a committee with members of the government, lawyers, auditors and citizens to strengthen the tax regime.
Economic Minister Fayyaz Ismail tweeted about the formation of the committee on January 17.
It is among the pledges of the current government to improve taxation, especially to show leniency in taxing small and medium enterprises.