MIRA Tightens Regulations on Bank Account Seizures for Unpaid Debts

The Maldives Inland Revenue Authority (MIRA) has revised its regulations regarding the seizure of bank accounts belonging to individuals and entities with significant unpaid debts to the State.

Previously, accounts could only be frozen if payment was not received within a 60-day notice period. However, a recent amendment implemented on Sunday allows MIRA to freeze accounts even after this period has lapsed.

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Accounts will be subject to freezing if the outstanding debt surpasses a threshold established by MIRA, excluding any penalties and interest. Notably, accounts will not be frozen if the entity in question has entered into a payment plan or if it pertains to a government agency or a company in which the government holds a majority stake.

This move comes as MIRA intensifies its crackdown on tax evasion, having issued over 67,000 reminders and notices to non-compliant taxpayers in the last three months.