MIRA seeks criminal charges against My Chemist for tax evasion

The Maldives Inland Revenue Authority (MIRA) has submitted the tax evasion case of My Chemist's owner Hussain Irufan for alleged tax evasion to Prosecutor General's Office to press charges.

My Chemist is among the most prominent pharmaceutical importers and providers in the Maldives.

MIRA in a statement said it had investigated Irfan for possible tax evasion, and found the businessman had provided falsified information in his tax statement. The taxation authority said this falsified information, which it believes was deliberate, was provided to evade paying taxation.

MIRA also said that the income statement of My Chemist’s wholesale outlet ‘My Chemist Godown’ has not been provided for the tax statements in 2018, 2019, and 2020. The taxation authority said that the business had not reported an average of MVR 53 million per annum to MIRA.

The audit into My Chemist revealed the company owed upwards of MVR 12 million in taxes, MIRA added, and ordered the business to pay the amount.

According to Article 64 of the Maldives Tax Administration Act, declaration of false or alteration of information that would affect a taxable amount in the tax return are constituted as tax evasion offenses. Aiding taxpayers to evade taxes or contravening MIRA’s investigation into potential tax evasion allegations are also criminal offenses prescribed in the same act.

MIRA said it has been conducting investigations to identify tax evaders and taking necessary action against offenders. The taxation authority has discretion of conducting investigations, issue audit notices, summon taxpayers for statements, and other powers allowing MIRA to fulfill its obligations under the Tax Administration Act.

The authority has requested to submit reports of potential tax evasion to MIRA’s website via the ‘MIRA 918 – Offense Reporting Form’.