New policies for non-payment of taxes have been published by the Maldives Inland Revenue Authority (MIRA).
These policies consist of the actions MIRA would take to reduce the fine for parties that fail to pay taxes on the given deadline. In the policy, it is stated that upon request, individuals can make an agreement with MIRA to pay tax in installments.
MIRA holds the authoritative power to freeze bank accounts over non-payment, as per the new policies. This agenda is taken into action in collaboration with the Maldivian Monetary Authority (MMA), if the pending tax payments were to exceed a certain amount and after this the individual fails to pay the amount, MIRA will freeze the account in 60 days’ notice.
These policies also highlight that if the individual is unable to pay the taxes within MIRA’s conditions, MIRA has the right to publicize the names of these individuals. These conditions include the individual’s inability to pay after two consecutive notices or if the party had not submitted the income statement for six months.
MIRA previously provided a leeway for individuals who are unable to pay taxes due to covid-19 pandemic strains. The authority stated that these new policies will replace the enforcement policy, which had been put on hold for the past two years due to the pandemic.