An Overview of MIRA’s Compliance Improvement Plan for 2022

In January, MIRA published their Compliance Improvement Plan for 2022 under their Compliance Risk Management.

According to MIRA, the objective of this policy is to promote voluntary compliance by making it easy for taxpayers to fulfil their tax obligations and to deter non-compliance through regulated actions.

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This year’s MIRA’s Compliance Improvement Plan contains five key activities to improve tax compliance:

  1. Improving tax literacy of taxpayers and general public
  2. Widening tax population through focused registration programs
  3. Guiding micro and small businesses towards better tax compliance
  4. Securing tax compliance of medium and large taxpayers
  5. Prioritizing enforcement actions against high-risk non-compliers

The most importance is given to securing tax compliance of medium to large taxpayers and taking enforcement actions against high-risk non-compliers. 

Other compliance improvement activities by MIRA include proposing amendments to Tax Administrative Act and Regulation to align MIRA’s compliance program with international best practices, re-designing of M IRA website to facilitate easy access to tax information, issuing industry and issue specific tax guides, and digital mapping of taxpayers in Male’ region to monitor tax compliance.

In the future, MIRA will be adapting to a framework where taxpayers are assessed, differentiated and treated based on taxpayers’ segment and their attitude to compliance. Under the policy, MIRA has identified a compliance model which recognizes the differences in taxpayers’ attitude to compliance, and provides the corresponding strategy that best relates to each risk level.

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