PGO Files Charges Against Two Doctors and PCR Testing Firms Over Alleged Tax Evasion

The Prosecutor General’s Office (PGO) has filed a chargesheet against two medical companies that provided extensive PCR testing services during the COVID-19 pandemic, along with their directors and an accountant, over alleged tax fraud.

In a statement issued yesterday, the PGO said Pioneer Maldives and Island Health Solutions, and their directors Dr Ikleel Shareef and Dr Ali Abdulla Latheef, have been charged in relation to the alleged intentional evasion of tax. Dr Ali Latheef faces three counts under Article 64 of the Administrative Law on Taxation, while Dr Ikleel has been charged with five counts under the same provision.

The PGO has also sent charges to the Criminal Court against Ali Fayaz, who prepared the financial statements and tax returns for both companies during the period under review. He is accused of knowingly preparing incorrect financial statements and tax returns.

Separately, Pioneer Maldives has been charged with two counts of intentional evasion of tax. Island Health Solutions faces three counts of intentional evasion of tax and one count of obstruction of law enforcement and other activities of the State under Article 533 of the Penal Code.

According to the PGO, discrepancies between the figures declared in the companies’ tax returns and the figures calculated by the Maldives Inland Revenue Authority (MIRA) based on actual income show that the two firms deliberately evaded tax amounting to MVR 20.2 million. If the charges under the Administrative Taxation Act are proven, the companies could be ordered to pay a fine of MVR 40.4 million — twice the amount allegedly evaded — under Article 93 of the Penal Code.

The PGO said the individual defendants were charged based on their roles in the companies. Dr Ikleel is the majority shareholder of both Island Health Solutions and Pioneer Maldives. Dr Latheef holds a 50 per cent stake in Island Health Solutions and has been involved in the management of both firms. The PGO added that Dr Latheef had roles in managing the companies during the COVID-19 pandemic.

The charges relate to the alleged filing of false and misleading tax returns from 2020 to 2021.

In a separate statement, MIRA said it launched an investigation after discovering that the two companies, which were at the forefront of PCR testing services during peak pandemic demand, had “grossly underreported” their taxable income.

Audits conducted as part of the investigation found that Island Health Solutions is liable to pay an additional MVR 4.3 million, while Pioneer Maldives must pay MVR 23.7 million, MIRA said.