High Court: Tax related decisions by MIRA can only be appealed if tax payment made

High Court, on Monday, ruled in favor of Maldives Inland Revenue Authority (MIRA) over their appeal of Tax Appeal Tribunal’s order to return USD 247,953.53 in unpaid tax and fines after freezing the bank account of Bunny Holding Private Limited.

High Court said that the right to appeal a decision by MIRA is born only after the party which disputes the decision has paid tax due to MIRA.

And that there will be no right to appeal if MIRA freezes their bank account and takes the money they are due.

Tax Act empowers MIRA to take tax money they are owed by freezing bank accounts through banks. And that it can be appealed with Tax Appeal Tribunal only after the aggrieved party pays the tax amount MIRA says they are due.

Bunny Holding Private Limited appeal the case with Tax Appeal Tribunal after MIRA froze their accounts and took money for TGST and fines due to the authority from the company’s Soneva Fushi by Six Senses.

Tax Appeal Tribunal ruled that MIRA’s decision was unlawful, and ordered them to return the money they took, back in 2013.

MIRA appealed the case with High Court saying that that Tax Appeal Tribunal made the decision unlawfully and unjustly.

High Court ruled that Bunny Holdings Private Limited appealed the case with Ta Appeal Tribunal after the 30-day window had passed; noting that according to law on taxation – the aggrieved party is assumed to have no objection regarding the decision if they don’t appeal the case within set 30 days.

The issue can no longer be pressed after that, said High Court.

The court therefore overruled the verdict issued by Tax Appeal Tribunal, making it void.

The case was presided over by Judge Abdulla Hameed, Judge Ali Sameer and Judge Shujau Usman.