Maldives Inland Revenue Authority (MIRA) has ordered GMR Group Company to pay USD 20.5 million as income tax and fines.
Indian media reports that GMR owes MIRA, USD 14.4 million as business profit tax, USD 2.8 million as additional withholding tax and a further USD 3.3 million as fines totalling USD 20.5 million. It is reported the Maldives tax administration body issued the order citing the tax audit reports and notice of tax assessments.
GMR entered into an agreement on 2010 with Maldives Airports Company Limited (MACL) and Ministry of Finance and Treasury for the rehabilitation, expansion, modernisation, operation and maintenance of Ibrahim Nasir International Airport for a period of 25 years.
However, in 2012, the government of Maldives issued a notice to GMR stating that the concession agreement was void ab initio and MACL and Finance Ministry had no authority under the laws of Maldives to enter into an agreement with GMR.
The action resulted in MACL taking over possession and control of the airport.