The Maldives Inland Revenue Authority (MIRA) has frozen the bank accounts of more than 200 individuals who failed to pay taxes last year. This action was outlined in MIRA’s 2023 annual report, released on Thursday.
Major Recoveries Noted
MIRA’s report revealed that 285 individuals had their bank accounts frozen last year, recovering MVR 90.3 million. This measure was part of a broader crackdown on tax evasion that led to the arrest of 17,054 tax evaders in the same period.
Enforcement Measures
Among the various enforcement measures, MIRA found that sending warning notices was the most effective strategy. Key details from the report include:
- Warning Notices: Sent to 10,013 individuals, leading to the recovery of MVR 2.2 billion.
- Voluntary Payments: 6,234 individuals paid their taxes voluntarily, contributing MVR 1.4 billion.
Name and Shame Policy
The report also highlighted the success of MIRA’s name and shame policy, which publicly identified tax defaulters. This policy prompted 473 individuals to settle their outstanding taxes, amounting to MVR 259.5 million. Additionally, 32 individuals responded to calls and emails, resulting in the recovery of MVR 3.4 million.
Legal Actions and Instalment Plans
Legal actions and installment plans also played a crucial role in tax recovery:
- Legal Actions: Twenty tax evaders who pursued legal action eventually paid their dues, contributing MVR 335,429.
- Instalment Plans: MIRA offered 795 tax defaulters the option to pay their taxes in installments. With outstanding dues of MVR 1.9 billion, 3,123 individuals chose this option, recovering MVR 1.2 billion.
