MIRA Submits Tax Evasion Case to PG’s Office

The Maldives Inland Revenue Authority (MIRA) has forwarded the tax evasion case of Hussain Irufan, owner of My Chemist, to the Prosecutor General’s Office, recommending the pursuit of legal action.

My Chemist is recognised as one of the leading pharmaceutical importers and suppliers in the Maldives. In a recent statement, MIRA disclosed that an investigation into Irufan had revealed he allegedly provided falsified information in his tax submissions. The taxation authority believes this was a deliberate attempt to evade paying taxes.

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Further findings from the investigation indicated that My Chemist’s wholesale outlet, ‘My Chemist Godown,’ had failed to submit income statements for the years 2018, 2019, and 2020. MIRA reported that the company had not disclosed an average annual income of MVR 53 million over these three years. As a result, the audit revealed that My Chemist owed over MVR 12 million in unpaid taxes, which the authority has ordered the business to settle.

According to Article 64 of the Maldives Tax Administration Act, the declaration of false information or the alteration of details affecting taxable amounts in a tax return constitutes a tax evasion offence. The act also criminalises any assistance in evading taxes or hindering MIRA’s investigations into potential tax evasion.

MIRA emphasised its ongoing efforts to identify and take action against tax evaders. The authority retains the power to conduct investigations, issue audit notices, summon taxpayers for statements, and exercise other powers granted under the Tax Administration Act.

The public is encouraged to report suspected tax evasion to MIRA via the ‘MIRA 918 – Offence Reporting Form’ available on its website.