Bill Submitted to Parliament to Amend Tax Law, Introducing Imprisonment for Tax Delinquents

A bill proposing amendments to the Tax Administration Act has been submitted to the People’s Majlis by Member of Parliament Mohamed Ismail representing the Vilimale’ constituency. The bill aims to strengthen the Maldives tax system by clarifying legal authority and introducing stricter penalties, including imprisonment for those who delay or fail to pay taxes.

Key provisions in the bill include granting the Maldives Inland Revenue Authority (MIRA) independent legal authority to determine tax debts, revising tax principles, and enhancing penalties for non-compliance.

MP Ismail explained that the current law lacks clarity on MIRA’s power to assess taxes declared in tax returns. The proposed amendment empowers MIRA to verify payable taxes using official evaluations, business transaction records, and other relevant information, ensuring more accurate tax collection.

The bill also introduces audit procedures, investigation protocols, and operational guidelines to strengthen enforcement mechanisms and taxpayer accountability.

This is the fourth amendment to the Tax Administration Act since its inception in 2010, following previous revisions in 2019 and 2020. MP Ismail emphasized that the new amendments will enhance taxpayer responsibility and improve overall tax system efficiency.