MIRA Freezes Accounts of 200 Tax Defaulters, Recovers MVR 90.3 Million

The Maldives Inland Revenue Authority (MIRA) has taken action against tax defaulters by freezing the bank accounts of more than 200 individuals who failed to pay taxes last year, as outlined in its 2023 annual report, released on Thursday.

According to the report, MIRA’s measures recovered MVR 90.3 million by freezing the bank accounts of 285 individuals. The crackdown on tax evasion also resulted in the arrest of 17,054 tax evaders in the same period.

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MIRA’s report highlighted various enforcement measures, with warning notices proving the most effective strategy. Warning notices were sent to 10,013 individuals, leading to the recovery of MVR 2.2 billion. Additionally, 6,234 individuals voluntarily paid their taxes, contributing MVR 1.4 billion to the tax recovery efforts.

The report also underscored the success of MIRA’s name and shame policy, which publicly identified tax defaulters. This policy prompted 473 individuals to settle their outstanding taxes, amounting to MVR 259.5 million. Moreover, 32 individuals responded to calls and emails, resulting in the recovery of MVR 3.4 million.

Legal actions and instalment plans also played a crucial role in tax recovery. Twenty tax evaders who pursued legal action eventually paid their dues, contributing MVR 335,429, while 795 tax defaulters were offered the option to pay their taxes in instalments. With outstanding dues of MVR 1.9 billion, 3,123 individuals chose this option, recovering MVR 1.2 billion.