Tag: MIRA

High Court rules MIRA has authority to confiscate documents

The High Court has ruled that the Maldives Inland Revenue Authority (MIRA) has the authority to seize documents during investigations of tax evasion or fraud carried out under an order by the tax appeal tribunal.

The High Court on Thursday (August 21) overturned a Civil Court ruling to the contrary in a case lodged by a company called Treasure Biz International Pvt Ltd after MIRA sent in auditors and confiscated documents from the company’s offices in December 2012.

The Civil Court in May 2013 ordered MIRA to hand over the documents and electronic equipment to the company within seven days.

A three-judge High Court panel, however, ruled (Dhivehi) that taxation laws empower MIRA officers enforcing a search order by the tax appeal tribunal to confiscate relevant documents or financial records. A specific order would not be required for seizing documents, the judges noted.

In May this year, Fuad Zahir, managing director of Treasure Biz, set up a trade union to advocate for the rights of small and medium-sized enterprises (SMEs).

MIRA has meanwhile filed tax evasion charges against Treasure Biz.

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Civil Court banishes lease holder of uninhabited island over non-payment of rent

The Civil Court yesterday banished the lease holder of Gaaf Alif Funadhoo for two months and 15 days for non-payment of rent for the island leased for agriculture.

The Maldives Inland Revenue Authority (MIRA) had sought execution of a previous Civil Court judgment ordering Ahmed Abdul Azeez, of Galolhu Aima, to pay outstanding rent and fines worth MVR1.7 million (US$110,246). The court had also ordered that Azeez be placed under house arrest for a month.

As MIRA had sought execution of the judgment for a second time due to non-payment, the court noted in the verdict (Dhivehi) that banishment was stipulated by the regulations for such cases of decreed debt.

However, according to local media, banishment sentences are no longer enforced.

MIRA has reportedly filed cases seeking MVR41.7 million (US$2.7 million) in unpaid taxes.

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President presents MIRA’s “Ran Laari” awards

President Abdulla Yameen presented the Maldives Inland Revenue Authority’s (MIRA) “Ran Laari” (golden laari) awards at a ceremony last night to 11 taxpayers that paid the highest amount of tax last year.

According to MIRA, taxes paid by the 11 recipients accounted for 17 percent of the MVR9.8 billion (US$636 million) collected as tax revenue in 2013.

The five private companies that paid the highest amount in taxes were Villa Shipping and Trading Company, Trans-Maldivian Airways, Crown Company, Kurehdhoo Holding, and Sunland Hotels.

Among government-owned companies, the award was presented to the Maldives Airports Company while the daughter of former Vice President Mohamed Waheed Deen, Aminath Sheznee, the late Hussain Shakir, BHM owner Hussain Moosa, and Helegili resort operator Annie Mary Emmy were given the award in the individual category.

Speaking at the ceremony in Dharubaaruge, President Yameen said MIRA’s efforts were “credit worthy” and praised the authority’s employees.

The “litmus test” for MIRA’s success and efficiency should be how much the cost of administration declines every year, he added.

Yameen suggested that the authority’s target should be spending 10 laari for every MVR199 (US$13) collected as tax revenue.

MIRA’s work would have to be “amplified” in the future in conjunction with the government’s efforts to diversify the economy and broaden the tax base, he said.

The tax base, structure, terminology, and methodology would be very different from the current “simplistic corporate taxation” once new industries are introduced, Yameen explained, referring to a possible petroleum tax as an example.

A custom duty levied at the border for imported goods for the easiest tax to collect as opposed to value added taxes such as sales taxes, he noted, which involves a much higher cost of administration.

In the future, he added, all sales transactions should “ultimately” be viewable on a MIRA main frame as it would significantly lower administrative costs.

Taxation in any country inevitably involves “tax fraud,” Yameen continued, which involves tax evasion and deliberate fraud.

While the current administration did not wish to criminalise and prosecute businesses, Yameen said cases of tax evasion could not be disregarded.

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MIRA collected MVR11.4 million in illegal parking fines in 2013

The Maldives Inland Revenue Authority (MIRA) collected MVR 11.4 million (US$0.7 million) in illegal parking fines in 2013.

This year, MIRA had collected MVR6.3 million (US$0.4 million) in illegal parking fines at the end of May.

MIRA collected MVR 6.9 million and MVR 6.2 million in 2012 and 2011 respectively.

Illegal parking carries an MVR250 for the first offense, MVR500 for the second offense and MVR750 for the third offense.

Drivers frequently complain of lack of parking space on Malé.

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MIRA announces 10 work-study scholarships

The Maldives Inland Revenue Authority (MIRA) has announced ten work-study openings on Tuesday.

MIRA will award employees selected under “learn while you earn” scholarships to study accounting at Maldivian colleges.

Employees are expected to work full time while studying, and will be paid for their work. The basic salary for the jobs are MVR 4000, but will receive an additional MVR 2000 in benefits. A further MVR 150 will be given per day as a service allowance and an MVR 75 per day for non practicing allowance.

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Immigration department to suspend services for tax evaders

The Department of Immigration and Emigration will suspend services for companies who fail to pay taxes starting on June 1.

The office will suspend issuing quotas to bring in expatriate workers, employment approvals for expatriate workers, business visas, and refund of security deposits for expatriate workers if a company or individual has pending payments, said a press release by the Maldives Inland Revenue Authority (MIRA) on Thursday.

These measures will only be taken if the company or individuals fail to pay MIRA on repeated warnings, or if the party refuses to make payments or if the party is wanted for tax evasion.

The measures will be dropped as soon as the required payments are made, MIRA said.

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Maldives Trade Union set up to advocate for SME rights

A trade union to protect the rights of small and medium businesses has been established in the Maldives.

The Maldives Trade Union (MTU) held a meeting on May 5 to select members to its governing board. Founder Fuad Zahir was automatically appointed as MTU’s president. An estimated 180 businesses have joined the union, local media reports.

Zahir, who heads Treasure Biz International, called the Maldives’ nascent tax system “failed” and said there was a culture of increasing taxes in the country.

Zahir and the Maldives Inland Revenue Authority (MIRA) had previously clashed over his company’s refusal to register for the Goods and Services Tax (GST).

On receiving an audit notice in 2012, Zahir told the MIRA over the phone that it could not conduct an audit of the company and claimed the law authorizing MIRA to conduct audits were against the constitution, a 2013 statement from MIRA said.

MIRA then sent in auditors to seize documents from Treasure Biz in December, 2012. Zahir filed a case to retrieve the documents at the Civil Court, but MIRA returned the documents in January 2013 before a ruling was issued.

An official from the authority told Minivan News today said they had asked the Prosecutor General to file tax evasion charges against Treasure Biz.

The two Vice Presidents of MTU are Shamha Trader’s owner Abdul Rasheed, and Venus pvt ltd’s owner Ali Hussein.

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GST from telecommunication services comes into effect

A six percent Goods and Services Tax (GST) on telecommunication services come into effect as of 12:00 a.m. today, May 1, 2014.

The eleventh amendment bill to the Goods and Services Tax Act, allowing the collection of a 6 percent taxation on telecommunication services, was published in the Government Gazette on March 25.

The tax applies to all communication services except for postal services provided by a postal service provider registered with the relevant Government authority or State institution, according to the Maldives Inland Revenue Authority (MIRA) website.

The tax for telephones will be included in the telephone bills, or added to the top-up vouchers.

The introduction of telecom GST was an initiative taken by the new government to increase revenue.

The State’s principal tax collector, MIRA estimates to gain MVR 110 million through Goods and Services Tax this year, reported local media Sun Online.

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Individual suspected of stealing from MIRA arrested

The individual sought by police on suspicion of stealing a large sum of money from Maldives Inland Revenue Authority (MIRA) has been arrested, reports local news outlet Sun Online.

Police stated that the individual was arrested at around 9:30pm last night (April 23).

“He was arrested with assistance from members of the public. He is of Bangladeshi nationality. More information will be revealed after investigation,” a police media official told Sun.

Police said earlier that the individual has been suspected of stealing MVR26,000 that had been placed on the service counter at MIRA on Sunday.

According to police, the individual stole the money from a service counter at the office on 20 April 2013. The stolen MVR26,000 was kept on the counter by another person who was at the office to pay taxes.

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