The Maldives Inland Revenue Authority (MIRA) has filed a case with the Prosecutor General’s Office against a pharmaceutical business owner accused of intentional tax fraud.
In a public statement, MIRA announced that it has requested an investigation and prosecution of Hussain Irfan, a well-known pharmaceutical business owner, for allegedly evading taxes. The authority began its investigation after discovering that Irfan's wholesale business, My Chemist Godown, had included false information in its profit tax returns for 2018 and 2019, as well as in his income tax return for the 2020 tax year, all with the intent of avoiding tax payments.
The investigation further revealed that My Chemist Godown failed to report its business income for three consecutive years in its tax statements. Although the business reported an average annual income of USD 3.4 million for 2018, 2019, and 2020, no details of this income were included in the tax returns.
MIRA's additional audits, conducted as part of the investigation, assessed that more than USD 778,788 is owed in taxes. Hussain Irfan has been ordered to pay this amount. According to the Income Tax Act, companies earning more than USD 155,757 per month are required to pay 15% of their income as tax. Under the Maldives Constitution, knowingly evading tax payment is a criminal offense.