Maldives Parliament Begins Debate on Bill Requiring Full Payment of Disputed Tax Before Appeal

The Maldivian Parliament (Majlis) on Tuesday began debate on a government-introduced bill to amend the Tax Administration Act. The proposed amendment aims to specify circumstances under which taxpayers must pay 100% of the disputed tax amount before appealing to the Tax Appeal Tribunal. The bill was presented by Mohamed Mamdhooh, the Progressive National Congress (PNC) member for Funadhoo constituency, on behalf of the government. According to the bill, under the current law (Article 39 of the Tax Administration Act), taxpayers challenging a tax assessment determined by the Maldives Inland Revenue Authority (MIRA) are required to pay 50% of the amount in dispute before the appeal can proceed. The amendment would require payment of the full disputed amount in certain defined cases. The bill also includes provisions for a transition period: once enacted, all necessary regulations and amendments must be completed and published in the government gazette within 90 days. The new rules will take effect upon gazette publication. The parliamentary committee is expected to review the bill further.