High Court Grants Stay on MIRA’s Tax Recovery Case Over Dharumavantha Hospital Project

The High Court has issued a stay on legal proceedings initiated by the Maldives Inland Revenue Authority (MIRA) to recover over MVR 100 million in taxes from the company behind the 25-storey Dharumavantha Hospital project.

MIRA is pursuing the Singaporean firm Chang Hua Construction, which undertook the hospital development, seeking the unpaid taxes. The case had previously been heard in the Civil Court, which ruled in 2023 that the government was liable to pay taxes on the project.

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Chang Hua Construction had initially raised a procedural objection, which was dismissed by the Civil Court. The company subsequently filed an appeal with the High Court. The High Court granted the stay on Thursday, citing the risk of irreparable damage if the Civil Court were to continue with the case before the appeal is resolved.

The company had already paid MVR 227,560 in Goods and Services Tax (GST) to the state. MIRA filed a civil suit in 2022 seeking further tax payments related to the project.