Maldivian government reports bank account of 17 companies - including Villa - have been frozen over tax violations, refuting allegations it was an attempt to exert political influence.
Speaking during a press conference held by the government at President’s Office this Wednesday, Minister of Tourism, Moosa Zameer said tax on tourist resorts was taken regularly by Maldives Inland Revenue Authority and that it was not a targeted act.
He said that any action taken by MIRA was not dictated by the government, but was action sanctioned through law.
Moosa Zameer said all 17 companies which had their bank accounts frozen had a history of tax violations. And that any action taken by MIRA was taken in adherence to law and procedure.
Minister of Finance and Treasury, Ahmed Munawwar added that MIRA was the institution which played the biggest role in collecting State income. And said MIRA took a step-by-step approach in fulfilling its duties.
MIRA reported in a statement it released this Wednesday that 1,824 parties have been penalized for tax violations this year, which includes 270 tourism businesses. It also reported that bank accounts of 17 businesses have been frozen for failure to pay lease, fines and other payments.
Minister Munawwar detailed the statement by MIRA and said that 11 percent of the total income in 2016 had come from tax enforcement.
He said that MVR 4.9 billion had come from tax enforcement from 2011 to 2016.
“This is very important. Expenditure alone isn’t enough when enforcing the budget. Income needs to be obtained. The work of MIRA is very important. MVR 2 billion in enforcement has come in so far this year,” said Munawwar.
MIRA reported the 17 businesses which had its bank accounts frozen included eight tourist resorts in operation and nine businesses with which contract to develop resorts have been severed.