Those who fail to pay GST will be taken to court: MIRA

Maldives Inland Revenue Authority (MIRA) has said that cases will be filed against those who fail to pay Goods and Services Tax (GST) after having imposed this tax on their customers.

Director General Revenue Service of MIRA Fathulla Jameel said that MIRA has the authority to file cases to court upon failure to receive tax money. Thus far all cases filed by MIRA have been regarding tourist resorts; however cases against those who fail to pay GST will also be filed to court.

“MIRA has the authority to take to court any case of non-payment of tax,” Fathulla said.

He said that several steps will be taken against these groups before cases are filed to court, such as imposing fines, publicizing names of those who have failed to make the payment, and freezing their accounts.

“If the money is still not received after all these actions, the cases will be filed to court,” Fathulla said.

Most cases filed to court by MIRA concern the payment of bed tax by tourist resorts and lease payment of uninhabited islands. Several of these cases are ongoing, while court rulings on all completed cases have been in favor of MIRA.

The Tax Administration Act gives MIRA the authority to take severe steps against those who fail to submit tax statements and make tax payment.

The list of those who have failed to pay GST announced by MIRA includes over 125 companies. They are 20 from the tourism sector, and 105 other businesses. The list also includes 38 companies from atolls other than Male’.