President Muizzu Ratifies Tax Law Amendment to Bolster MIRA Enforcement Powers

President Dr. Mohamed Muizzu has ratified the fourth amendment to the Tax Administration Act, significantly expanding the Maldives Inland Revenue Authority's (MIRA) powers to enforce tax laws and recover outstanding revenue. The legislation, which was passed by the Parliament on August 26, was signed during a special ceremony at the President's Office. The amended law officially took effect this Monday following its publication in the Government Gazette. Central to the new law is the empowerment of the Commissioner General of Taxation, who can now compel any party holding relevant information to provide it to MIRA. These broader powers are designed to streamline tax audits and investigations, ensuring a more rigorous approach to tax enforcement across the archipelago. To ensure higher compliance, the amendment introduces additional tax offenses and penalties. It also clarifies the specific factors and information MIRA must analyze when determining a taxpayer's liability, providing a more standardized framework for assessments. Taxpayers will see new requirements and deadlines for filing returns. However, the law provides some flexibility by allowing individuals to settle certain penalties through installment arrangements, provided they follow prescribed rules. On the international stage, the Maldives is strengthening its transparency efforts. The amendment enhances provisions for joint tax examinations with foreign authorities and reinforces adherence to the Common Reporting Standard (CRS) and Country-by-Country Reporting. Non-compliance with CRS obligations can now result in substantial fines of up to USD 16,200. Furthering the goal of institutional accountability, the legislation establishes a formal code of conduct for members of the Tax Appeal Tribunal. To ensure transparency, their financial statements must now be published according to guidelines set by the Auditor General. Additionally, the law defines specific limitation periods for initiating civil and criminal proceedings under the Tax Administration Act, providing a clearer legal timeline for the judiciary and taxpayers alike.