The Maldives Inland Revenue Authority (MIRA) recovered approximately USD 225.7 million in outstanding revenue during the first six months of the year, with its statistics showing that most of the amount was collected in the first quarter.
MIRA continues to intensify efforts to recover outstanding tax and non-tax revenue owed to the State. As part of these efforts, the authority has expanded recovery measures by issuing notices required under the regulations.
Statistics published for the first two quarters show that MIRA recovered approximately USD 225.7 million in outstanding revenue over the six-month period. The figures state that the authority recovered approximately USD 135,538 in the first quarter and USD 90.1 million in the second quarter.
Dunning and notices accounted for the largest amount recovered, at approximately USD 155 million. MIRA also recovered approximately USD 55.8 million through dues clearance, USD 12.5 million through telephone and email reminders, USD 942,931 through bank account freezes, and USD 1.4 million through name disclosure.
MIRA also sent final notices to a large number of parties that failed to file returns or make required payments during the two quarters. The authority sent final notices to 10,701 parties that had not filed tax returns in the first quarter and 9,798 in the second quarter.
MIRA also sent notices to 5,776 parties that had not paid tax in the first quarter and 6,586 in the second quarter.
The authority can conduct investigative audits to determine the amount of tax payable by parties that fail to file tax returns and those that fail to pay taxes owed to the State as required.
MIRA conducted 23 audits in the first quarter and instructed taxpayers to pay approximately USD 4 million in additional tax. It expanded these efforts in the second quarter, completing 50 audits and instructing taxpayers to pay approximately USD 2 million in additional tax.
This brought the total number of audits completed during the first six months to 73, with approximately USD 6 million in additional tax assessed for payment.
MIRA also conducts compliance visits to assess whether taxpayers comply with relevant laws and regulations. The authority carried out 2,612 such visits during the first six months of the year.
Amendments to the Tax Administration Act have granted MIRA additional powers to recover money owed to the State and strengthen the enforcement of tax laws. The law sets out measures MIRA can take against parties that fail to file tax returns, as well as provisions governing how the authority determines the amount of tax they must pay.