The Maldives Inland Revenue Authority (MIRA) has taken legal action against a prominent pharmaceutical business owner, alleging intentional tax fraud. The case has been filed with the Prosecutor General’s Office, requesting an investigation and prosecution of Hussain Irfan, the owner of My Chemist Godown, for evading taxes.
MIRA’s investigation, which began after discrepancies were found in Irfan’s tax submissions, revealed that his wholesale business had reported false information in its profit tax returns for 2018 and 2019, as well as in his income tax return for 2020. The authority noted that these actions were taken with the intent of avoiding tax payments.
The investigation also uncovered that My Chemist Godown failed to accurately report its business income for three consecutive years. Despite recording an average annual income of USD 3.4 million for the years in question, this income was not fully disclosed in the tax filings.
Following an extensive audit, MIRA determined that Irfan’s business owes more than USD 778,788 in unpaid taxes. The Income Tax Act mandates that companies earning more than USD 155,757 per month are required to pay 15% of their income in taxes. The Maldives Constitution classifies intentional tax evasion as a criminal offense.
