High Court stays MVR 100M tax case on Dharumavantha Hospital project

The High Court has issued a stay on the case filed by the Maldives Inland Revenue Authority (MIRA) to recover over MVR 100 million in taxes from the company responsible for developing the 25-storey Dharumavantha Hospital project.

MIRA is pursuing legal action against Chang Hua Construction, a Singaporean firm that undertook the Dharumavantha Hospital project, seeking more than MVR 100 million in outstanding taxes. This case is currently awaiting resolution in the High Court. Previously, in 2023, the Civil Court had ruled that the government was liable to pay taxes on the project.

The Civil Court had initially dismissed a procedural objection raised by the Singaporean company, prompting the company to file an appeal with the High Court. The High Court's decision to stay the lower court proceedings stems from this appeal concerning the company's objection.

On Thursday, the High Court granted the stay, citing the potential for irreparable damage if the Civil Court were to proceed with the case before the High Court rendered a decision on the Singaporean company's appeal.

Chang Hua Construction, the Singaporean company awarded the contract for the construction of the 25-storey Dharumavantha Hospital building, had paid MVR 227,560 in Goods and Services Tax (GST) to the state. MIRA subsequently initiated a civil suit in 2022, seeking additional tax payments.