President Dr Mohamed Muizzu has ratified amendments to the Tax Administration Act, introducing changes to the powers of the Maldives Inland Revenue Authority (MIRA) and strengthening penalties for a range of tax-related offences.
The amendments, passed by Parliament last week, were signed into law by the President during a special ceremony held at the President’s Office.
Among the key changes is an expanded role for MIRA in recovering money owed to the state. The authority to pursue the legal recovery of overdue non-tax revenue has now been transferred from the Attorney General to MIRA.
The legislation also establishes clearer procedures allowing MIRA to estimate a taxpayer’s tax liability when required tax returns have not been submitted.
According to the government, the changes are intended to provide a clearer legal framework for such assessments while also revising procedures governing tax audits and investigations.
MIRA’s powers relating to the recovery of unpaid taxes have also been reviewed under the amendments, alongside broader changes to tax offences and their corresponding penalties.
The legislation introduces or clarifies several offences involving interference with tax officials.
Under the revised law, obstructing or using force against the Commissioner General of Taxation or officials acting under the commissioner’s authority can constitute a criminal offence. Offering bribes or attempting to exert influence through written or verbal threats is also criminalised, as is assisting or participating in such conduct.
Those convicted of the offence can be fined MVR 200,000.
The amendments also introduce changes concerning confidential information held or shared under the tax administration framework.
Individuals who receive confidential tax information are required to protect its confidentiality unless the information has already been made public or its disclosure is specifically permitted by law.
However, the confidentiality requirements will not prevent information from being disclosed when it is required as part of proceedings before a court or tribunal.
The revised legislation further clarifies circumstances in which MIRA may disclose information about taxpayers and other parties that have failed to meet their obligations.
Publishing details of individuals or entities that fail to submit mandatory tax returns will not be considered a breach of confidentiality under the amended law.
The same applies to the disclosure of information concerning parties that have failed to pay taxes, fines or non-tax fees collected by MIRA after those payments become due.
The Tax Administration Act provides the principal legal framework governing the administration of taxes in the Maldives, including MIRA’s responsibilities and powers, taxpayer obligations, assessments, audits, investigations and enforcement procedures.
The latest amendments come as the government moves to strengthen tax collection and close gaps in the country’s revenue framework.
President Muizzu has also ratified separate amendments to the Goods and Services Tax Act, expanding GST obligations to qualifying foreign tour operators, travel agents and offshore booking platforms selling Maldives tourism products. The government estimates those changes could generate an additional MVR 1.6 billion annually.
The Tax Administration Act amendments are intended to complement such changes by strengthening the mechanisms available to MIRA to assess liabilities, investigate non-compliance and recover revenue owed to the state.
