Hope Travels, a prominent ferry service provider in Shaviyani and Noonu atolls, has denied allegations of tax evasion leveled by the Maldives Inland Revenue Authority (MIRA).
The company's management suggests the accusations are unfounded and potentially motivated by internal MIRA dynamics and a lack of political connections.
In a statement released on Sunday, MIRA claimed that GST returns for July 1, 2020, to May 31, 2023, submitted by Hope Holdings (the operator of Hope Travels), along with income tax returns for 2020 and 2021, were allegedly false. MIRA stated its investigation was initiated after discovering reported attempts by the company to evade taxes.
Subsequently, MIRA filed with the Prosecutor General's (PG) Office to seek the prosecution of Shahid Ibrahim Manik, a partner in Hope Holdings, and Mohamed Ali, an active participant in the business.
Hope Travels' management, in a Monday statement, countered MIRA's narrative, asserting that despite MIRA's claim of the case originating five years ago, the authority only decided to investigate three years later.
'Huvan' speedboat, part of the Hope Travels fleet. (Photo/Social Media)
"The management believes that the company's CEO and GM are being accused of tax fraud based on unfounded and false allegations. We find these claims to be an irreparable embarrassment to the approximately 300 employees of our entire group and their families," the statement indicated.
Hope Travels affirmed its cooperation with MIRA on tax audits but contended that the current case violates the authority's general rules. The company also raised concerns about a "sudden" MIRA raid on its office in August 2023, conducted without stated basis and under the pretext of a "high threat level."
Furthermore, Hope Travels alleged that certain MIRA employees target businesses without political influence for promotion and due to internal competition. The company also claimed that cases are investigated based on "information received via a message to a MIRA officer or from a conversation at a coffee table."
Compounding their grievances, Hope Travels stated that the case was filed on the last possible day. "As August 17, 2025, is the final day for filing a case in court, the statements were submitted hastily without allowing enough time for the signing of the statement," the company asserted.
Hope Travels also expressed concern that during the investigation, it was invited to several informal "meetings" through various intermediaries, and MIRA allegedly leaked information related to the case before its completion, further discrediting the company.
The statement concluded with a broader critique, noting that "Many people believe that public trust in large state institutions like MIRA is lost because of selfishness and incompetent people are at the forefront. They believe that people without quality will turn the institution into a haven of corruption."
Under Article 64 of the Administrative Taxation Act, knowingly or intentionally evading tax payments, or assisting in such an offense, is a prosecutable crime. The act stipulates penalties for convicted individuals, including a fine not exceeding MVR 250,000, imprisonment ranging from three months to three years, house arrest, or a combination of imprisonment and a fine or house arrest.
With taxes constituting the majority of state revenue, tax evasion has become a growing concern. Amendments to the Administrative Taxation Act have introduced a maximum penalty of three years imprisonment for failing to comply with tax notices and information requirements with the intent to knowingly evade tax payments.