The Maldives Inland Revenue Authority (MIRA) has requested the Prosecutor General’s Office (PGO) to pursue legal action against Kaani Hotels, a major operator of guesthouses in K. Maafushi, for alleged tax fraud. The charges pertain to false submissions of green tax, GST, Business Profit Tax (BPT), and income tax returns between January 1, 2019, and September 30, 2022.
An investigation by MIRA revealed that Kaani Hotels engaged in activities aimed at evading tax obligations, including non-disclosure of income from foreign tour operators and independent travellers. The company is also accused of omitting revenue generated from additional services such as airport transfers, restaurants, spas, and excursions from its tax returns. Audits conducted by MIRA determined that Kaani Hotels owes over USD 800,000 (approximately MVR 13.3 million) in unpaid taxes.
Legal cases have been filed against Kaani Hotels and Tours Pvt. Ltd., Asna Investments Pvt. Ltd., and key individuals associated with the companies, including Abdulla Nasheed, President of the National Hotels and Guesthouses Association (NHGA), his wife Aminath Asima Salim, and their accountant, Aishath Razuna.
As part of the investigation, MIRA executed searches at the company’s office, seized documents, and recorded statements from those involved.
Kaani Hotels currently operates four guesthouses in Maafushi, offering a combined capacity of 490 beds. The company is also constructing a 350-bed hotel in AA. Ukulhas and holds a lease for an island in Vaavu Atoll for resort development. Between January and April of this year, Kaani Hotels recorded a revenue of USD 4.1 million (approximately MVR 64 million).
The alleged irregularities first surfaced during a routine inspection by MIRA of guesthouses operating in Maafushi on November 13, 2022. MIRA’s actions highlight the ongoing efforts to ensure compliance with tax regulations within the Maldives’ tourism sector.
