MIRA Says It Is Enforcing Tax Laws Equally, Auditing Tourism and Other Sectors

The Maldives Inland Revenue Authority (MIRA) has said it is taking action under its established regulations against parties that do not pay tax, stating that the tax system is being run in accordance with those regulations. In a statement, MIRA said that under the Tax Administration Act its main responsibility is to enforce tax laws, run tax-related policies, and conduct and oversee the collection of all taxes legally due to the state. Accordingly, MIRA said it verifies whether taxpayers are calculating tax in line with tax laws and ensures that compliant parties fulfil their tax obligations, describing this as a legal responsibility it carries out. MIRA said that in carrying out this responsibility it enforces the law equally among all parties rather than considering the type and size of the business, a principle it said it has practised since its inception. MIRA also noted that its work follows an established strategic plan, in accordance with a published Compliance Improvement Plan. According to MIRA, parties selected for audit are chosen by equal principles within a "risk based" compliance risk management framework. It said businesses in the tourism sector and in other sectors are also being audited, and noted that a large percentage of the income it receives comes from the tourism sector. MIRA said easy arrangements have been established for small businesses within the tax system, with easements given to small businesses in accounting, auditing and submitting tax statements. It said its work has been structured around businesses by providing the assistance needed to increase tax compliance, and that it is taking action under established regulations against parties that deliberately do not pay tax.