Audit reveals severe backlog at Tax Appeal Tribunal; government moves to hike appeal deposit to 50%

An audit report has revealed a severe backlog at the Tax Appeal Tribunal (TAT) in the Maldives, with only 21.9% of cases resolved during the year. The compliance audit for 2025 showed that out of 73 cases handled, including carryovers, just 16 were decided, leaving 57 cases pending. The tribunal, which hears appeals against decisions of the Maldives Inland Revenue Authority (MIRA), processed only about one case per month. The audit also found that the tribunal spent 12.4 million rufiyaa in the year, including 6.6 million on salaries for its five members and 23 administrative staff. Meanwhile, the government has proposed an amendment to the Tax Administration Act to increase the deposit required to file an appeal from 25% to 50% of the disputed tax amount, and up to 100% in cases of tax evasion. The move aims to address delays, but critics warn it could deter legitimate appeals.