Bill to Amend Tax Administration Act Submitted to Parliament

A bill to amend the Tax Administration Act has been submitted to the People's Majlis. The proposed legislation aims to establish specific circumstances under which taxpayers must pay 100% of the disputed amount before filing an appeal against a tax assessment by the Maldives Inland Revenue Authority (MIRA). The bill, submitted on behalf of the government by Funadhoo Constituency MP Mohamed Mamdhooh, received its first reading today. According to the bill, taxpayers currently appealing a tax assessment under Article 39 of the Tax Administration Act must pay 50% of the disputed amount before the appeal can proceed. The amendment seeks to clarify the conditions requiring the full payment of the disputed amount before an appeal is filed. Furthermore, the bill states that if MIRA determines that a reduction in a potential loss for a future accounting period, as allowed under the Income Tax Act, is a result of the disputed tax assessment, the taxpayer may not be required to make any payment to MIRA to resolve the case, based on the extent of the reduction. Upon enactment, the relevant regulations and necessary amendments must be established and published in the government gazette within 90 days. The law will come into effect upon its enactment and publication in the gazette.