The Maldives Inland Revenue Authority (MIRA) has launched a major investigation and filed charges against Hope Travels, a company operating ferry services in Shaviyani and Noonu atolls, on suspicion of large-scale tax evasion.
According to MIRA, the case centres on tax filings covering July 1, 2020, to May 31, 2023. The authority alleges that GST returns submitted by Hope Holdings, which operates the ferry service, as well as the company’s 2020 and 2021 income tax returns, were falsified.
While Hope Holdings Partnership is registered with MIRA for GST, the specific Hope Travels activity under the business had not been registered. Investigators said 89 percent of the company’s total income during the review period was excluded from the GST returns filed.
MIRA’s findings suggest Hope Travels failed to report an income of MVR 54 million and over MVR 3 million in GST. In addition, around MVR 29 million was allegedly omitted from the income tax returns submitted for 2020 and 2021.
As part of the probe, MIRA searched the Hope Travels office, collected business documents, and took statements from individuals connected to the operation. The authority has referred the case to the Prosecutor General’s Office for criminal prosecution against two partners of Hope Holdings: Shahud Ibrahim Manik and Mohammed Ali.
Under Article 64 of the Administrative Taxation Act, deliberately evading taxes, or assisting in such activity, is a criminal offence. Recent amendments to the Act introduced a maximum penalty of three years’ imprisonment for failing to comply with tax notices or requirements with the intent to evade taxes.
MIRA stated that it remains committed to pursuing action against those engaged in tax fraud or deception, highlighting the importance of its Tax Crime Mitigation Strategy at a time when taxes form the backbone of state revenue.
