MIRA Says Tax Enforcement Applied Equally to All Businesses, Regardless of Size

The Maldives Inland Revenue Authority (MIRA) has said that enforcing the law equally among all parties, without regard to the type or size of business, has been a policy it has acted upon since the beginning in discharging the main responsibility assigned to it under the Tax Administration Act. MIRA issued the statement after Maldives Monetary Authority (MMA) Governor Ahmed Munawar, speaking at the fifth meeting of the People's Majlis committee scrutinising the budget yesterday, said that collecting business profit tax is a major responsibility and noted that MIRA is doing a great deal of work for that collection. The Governor also said that MIRA likewise needs to audit resorts. "From the figures MIRA has shared with us, what we have been given is that out of 185 resorts, roughly 50 resorts are known to pay income tax. Only about 50 resorts pay income tax. What does that mean? Either it is of no benefit, or there is some kind of problem," Munawar said. He therefore said that MIRA also needs to audit the resorts. In a statement issued yesterday regarding its responsibilities, MIRA said the main responsibility assigned to it under the Tax Administration Act is enforcing tax laws, running tax-related policies, and conducting and maintaining the work of collecting all taxes legally levied by the state. Under this work, the statement said, it is a legal responsibility being discharged by MIRA to check whether the tax computation work carried out by taxpayers is proceeding in accordance with the laws, and to ensure that taxpayers fulfil their tax obligations in accordance with the tax law. MIRA's statement said that in discharging this responsibility, the authority will not at any time look at the type or size of businesses, and that the responsibility assigned to it by law is being discharged on the basis of an equal principle. It added that the work being carried out by the authority is done in accordance with a plan formulated under a set strategic plan and in accordance with a published compliance improvement plan. The statement further said that the parties MIRA selects for audit are selected on equal principles from within a compliance risk management framework arranged on a "risk based" principle. MIRA noted that through this framework, businesses in tourism and in other sectors can be audited in an equal manner. According to the statement, MIRA's work is structured around businesses and around increasing tax compliance by providing the assistance businesses need. However, it said MIRA is taking action under established principles against parties who intentionally fail to pay tax.