The Maldives Inland Revenue Authority (MIRA) has introduced amendments to its enforcement policies, enabling the agency to freeze the bank accounts of individuals and entities who fail to pay taxes. The changes, which took effect immediately upon publication in the Government Gazette on Sunday, are part of MIRA’s efforts to strengthen tax compliance and collection.
The revised policies include updates to the general enforcement policy, the policy on accessing bank account information and freezing accounts, and the name and shame policy. Under these new measures, MIRA now has the authority to freeze the bank accounts of non-payers who have been issued notices but have not yet filed their taxes. However, this only applies if the amount in the account exceeds a threshold set by MIRA, excluding fines and interest, and if MIRA’s records do not show any other funds against which the outstanding taxes can be set off.
Certain exemptions apply under the new rules. Accounts belonging to state-owned enterprises, companies where the state holds a majority share, or individuals who have signed agreements under MIRA’s instalment policy will not be subject to freezing.
The enhanced enforcement policies are expected to bring several benefits to the Maldives’ tax system. By allowing MIRA to freeze bank accounts of persistent non-payers, the agency will be able to improve tax collection rates, thereby increasing government revenue. The measure will also act as a deterrent for tax defaulters, encouraging individuals and businesses to stay compliant with their tax obligations.
In addition, the stricter policies could reduce the administrative burden on MIRA, as fewer resources may be needed to pursue long-term defaulters. This, in turn, will allow the agency to focus on other areas of tax administration and support overall financial stability in the country.
MIRA’s commitment to maintaining fairness in its enforcement process is also reflected in the policy’s exemptions, ensuring that companies with significant state ownership or those adhering to payment instalments are not unfairly penalised.
