MIRA – Page 2 – Minivan News

Tax authority collects MVR1.2bn in March

The country’s tax authority collected MVR1.27 billion (US$82 million) in March, up 29 percent from the same period last year.

The Maldives Inland Revenue Authority noted that revenue was 18.8 percent above forecasts thanks to higher tourism goods and services tax (T-GST) receipts following a hike from eight to 12 percent in November.

Revenue also rose from tourist lease rent and the general GST.

A portion of GST payments from February was also collected in March as February 28 fell on a weekend and the deadline was moved to March 1.

Fines collected last month were also nine times higher than March 2014, while payments for resort lease period extension fees also contributed to the revenue growth.

The extension fees were not collected in the corresponding period last year.

GST payments accounted for 58 percent of total revenue collected in March 2015, followed by tourism land rent (22.3 percent), airport service charge (4.2 percent), business profit tax (3.9 percent), and lease period extension fees (3.6 percent).

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Government targeting Gasim unfairly, says MDP Vice President

The Maldivian Democratic Party (MDP) Vice President Mohamed Shifaz told VTV last night that Maldivians should not wait and watch while the government targeted the Jumhooree Party (JP) leader Gasim Ibrahim’s businesses.

Shifaz said that Gasim had contributed greatly to the nation and that he was diligent when it came to paying required taxes to the state.

“If we ignore these things today, there would not be a country tomorrow and the citizens would have nowhere to go and no one to turn to for help,” he told the station, owned by Gasim’s Villa Group.

The Maldives Inland Revenue Authority (MIRA) on March 1 ordered Gasim’s Villa Group to pay pay the state US$100 million within 30 days.

Gasim is currently contesting MIRA’s order. The government said Villa owed the state money in rent and fines for several islands and lagoons leased to the company.

Also speaking on VTV yesterday, the JP’s legal secretary, Imad Solih, said that Gasim had received the ‘Ran Laari’ award in 2014, given in recognition of those who pay the highest amount in taxes to the state.

“A single opinion causes the entire degradation of an airport and a simple political stand results in the seizing of assets. Is this justice and equality?” asked Imad.

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Villa Group contests US$100 million rent claim

Opposition leader Gasim Ibrahim’s Villa Group has contested a US$100million claim issued by the Tourism Ministry at the Civil Court.

The 30-day notice, issued on March 1, came after the ministry annulled agreements for seven islands leased to Villa Group. At the time, the ministry claimed Villa had failed to begin developing the islands as resorts.

The company last week requested the Civil Court to annul the US$100million claim as well as the Tourism Ministry’s decision to cancel the seven lease agreements.

Meanwhile, the opposition has alleged the government was targeting Gasim’s businesses following his split with the ruling Progressive Party of the Maldives and subsequent alliance with the Maldivian Democratic Party.

The Tourism Ministry in early February also moved to seize several lagoons granted to Villa Group, but was stalled following a Civil Court injunction. The High Court on February 24 overturned the stay order, paving the way for state appropriation.

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Revenue collection in February 17 percent below forecast, reveals MIRA

The Maldives Inland Revenue Authority (MIRA) collected MVR905.7 million in February, 84.7 percent more than previous month but 17.6 percent below income forecasts.

MIRA explained in a press statement last week that income from Tourism Goods and Service Tax (T-GST) increased by 32.7 % following a T-GST hike from eight to 12 percent in November whist GST revenue also increased by 18.9 percent.

Revenue from Business Profit Tax (BPT) meanwhile rose 232 percent from January as the deadline for the second interim payment was moved to February 1 as January 31 fell on a weekend.

“The collection for February 2015 is 17.6 percent less than the forecasted amount for this month,” MIRA noted.

“The reasons for this includes the decrease in tourism related revenues by 17 percent as tourist arrivals did not meet expectations, and the collection of GST in March as the deadline was moved to 1 March because 28 February fell on a weekend.”

A total of MVR190.17 million was also collected as lease period extension fees from resorts whilst tourism lease rent amounted to MVR34.42 million.

The total revenue collected in the first two months of January amounted to MVR2.45 billion, 36.2 percent higher than the same period last year.

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Villa Group ordered to pay US$100million in 30 days

Opposition Jumhooree Party (JP) Leader Gasim Ibrahim’s Villa Group has been ordered to pay the state US$100million within 30 days.

The Maldives Inland Revenue Authority (MIRA) today said Villa Group owed the state US$100million in rent and fines for several islands and lagoons leased to the company.

However, upon his return to Malé this afternoon Gasim brushed off the claim stating: “I don’t owe MIRA anything.”

The opposition has claimed the government is targeting Gasim’s businesses following his split with the ruling Progressive Party of the Maldives (PPM) and subsequent alliance with the Maldivian Democratic Party (MDP).

State prosecutors last week claimed former Defense Minister Mohamed Nazim had conspired with the Villa Group to harm senior state officials, according to documents in a pen drive confiscated from the retired Colonel’s home during a midnight raid on January 18.

Nazim is currently in police custody until a trial on illegal weapons possession concludes at the Criminal Court. The police found a pistol and three live bullets along with the pen drive during the controversial raid.

Meanwhile, former President Mohamed Nasheed is also in police custody amidst a surprise terrorism trial over the military detention of Criminal Court Chief Judge Abdulla Mohamed in January 2012.

Speaking to reporters at the Ibrahim Nasir International Airport, Gasim said the international community was closely monitoring the government’s “unjust prosecution of opposition leaders.”

“The international community takes the prosecution of former President Mohamed Nasheed, retired Colonel Mohamed Nazim and current Defense Minister Moosa Ali Jaleel and other politically motivated prosecutions as a joke. They believe that political prisoners are being framed,” Gasim said.

Gasim had departed to Colombo on Wednesday to meet with Sri Lankan President Maithripala Sirisena, Prime Minister Ranil Wickremesinghe and a European Union (EU) delegation, ahead of a mass opposition protest scheduled for February 27.

“The Sri Lankan President expressed concern over the situation in Maldives and has promised that he would speak with the Prime Minister and send a senior Sri Lankan delegation to Maldives,” Gasim told reporters.

“My main reason for this trip was to prevent any economic sanctions against Maldives, if political prisoners are sentenced. If that happens people of this country will starve, and no good would come out of it.”

Fearing international economic sanctions if the current political crisis deepens, Gasim urged President Abdulla Yameen to withdraw charges against all political prisoners.

The PPM maintains it has no influence over Nasheed and Nazim’s trials, claiming the charges were initiated by the independent Prosecutor General Muhthaz Muhsin and tried through independent courts.

However, pointing to a PPM majority in the People’s Majlis, Gasim implied the state’s independent institutions did as President Yameen instructed for fear of retaliation.

“The President might say that it’s not in his power to withdraw the charges against the political prisoners. It is true, but the fact is government has the majority of the Peoples Majlis therefore members of independent institutions will fear government retaliation if they do anything against them.”

The opposition leader’s absence at the mass February 27 rally left many supporters dissatisfied, but Gasim said he was “watching the protest from Sri Lanka.”

“The huge number of protesters shows that Maldivians despise a dictatorship. This shows that Maldivians want justice,” he said.

Asked if he fears arrest, Gasim said the police could only arrest him if he had committed any crime.

“I haven’t committed any crime. I have heard that government is framing people such as colonel Nazim. I have not committed any crime and won’t commit one even in the future.”

The Tourism Ministry in early February moved to seize several islands and lagoons granted to Villa Group in a settlement agreement, but was stalled following a Civil Court injunction. The High Court last week overturned the stay order, paving the way for state appropriation.

Related to this story

JP Leader Gasim meets Sri Lankan President Sirisena

10,000 protest in Malé, call for President Yameen’s resignation

Allegations of conspiracy with Nazim “deliberate fabrication,” says Gasim

High Court overturns stay order halting seizure of Villa properties

Gasim defiant as opposition sign agreement to defend Constitution

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MIRA publishes new tax ruling

The Maldives Inland Revenue Authority (MIRA) has published new regulations regarding the appointment of auditors assigned with the task of preparing financial statements submitted by taxpayers.

According to a tax ruling issued by MIRA on yesterday (January 12), when a taxpayer’s tax categorisation changes the same auditor can proceed with preparing financial statements after obtaining a special permission from the commissioner general of taxation.

The new ruling also states that audit firms can only be established after registering as a ‘partnership’ under the Company Act and obligates auditors to generate a report by March 31 of each year, according to a format provided by MIRA on the previous year’s audits.

This legally binding ruling signed by Commissioner General of Taxation Yazeed Mohamed will supersede all previous tax rulings.

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MIRA to impose fines for failure to maintain financial records

The Maldives Inland Revenue Authority (MIRA) has warned that legal action will be taken against businesses with incomplete financial records from April 2015 onward.

In a statement yesterday (December 22), MIRA announced that fines would be imposed on taxpayers who fail to maintain records in accordance with the Tax Administration Act of 2010.

MIRA noted that it has been providing instructions and information to businesses through the media as well as its compliance inspections.

Moreover, a guide on maintenance of financial records is available on the MIRA website and urged businesses to call 1415 for further information and assistance.

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MIRA collects MVR835.7 million in September

The Maldives Inland Revenue Authority (MIRA) collected MVR835.7 million (US$54 million) in taxes during September, 4.3 percent higher than the forecast income for the month.

MIRA explained in a press statement yesterday that the tax revenue was 24.4 percent higher than the same period in 2013.

While proceeds from tourism land rent accounted for MVR315.7 million (US$20 million), MIRA revealed that MVR302.7 million (US$19.6 million) was collected as GST (Goods and Services Tax).

As of the end of September, MIRA has collected a total of MVR9.01 billion (US$584 million), which represents a 26.3 percent increase from last year. A total of MVR8.9 billion (US$577 million) was collected by the end of 2013.

Despite record levels of government income, however, the Ministry of Finance and Treasury reduced recurrent expenditure by 20 percent this month in an effort to curb a growing budget deficit.

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Civil Court rules customs has authority to confiscate imported goods

The Civil Court has ruled that the Maldives Customs Service (MCS) has the legal authority to confiscate goods imported by companies or individuals with outstanding tax payments to the Maldives Inland Revenue Authority (MIRA).

In a judgment delivered on Thursday (September 11), the court ruled against a claimant, Fuad Zahir from Mariyammage in Gaaf Alif Kolamaafushi, who contested the custom’s seizure of a shipment imported under his name.

The customs had confiscated the shipment due to unpaid taxes.

The MCS was authorised to take the action under import and export laws as well as the Customs Act, the judge noted, and rejected the claim for compensation of losses incurred due to the confiscation of goods.

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