The Maldives Inland Revenue Authority (MIRA) has mounted a firm defence of its enforcement and audit procedures following critical remarks by Maldives Monetary Authority (MMA) Governor Ahmed Munawwar. In an official statement issued today, the tax authority rejected insinuations that it disproportionately targets smaller enterprises while overlooking the lucrative hospitality sector, emphasising that its legal mandates are executed uniformly regardless of the scale or nature of a business.
The development follows Governor Munawwar's appearance before the Parliamentary Public Accounts Committee (Budget Committee), where he remarked that resolving foreign currency shortages requires MIRA to audit tourist resorts rather than focusing solely on local corner shops. The Governor highlighted that while the tourism industry generates an estimated $5.9 billion annually, only approximately $3.8 billion enters the domestic banking system, noting further that numerous resorts continue to default on Business Profit Tax (BPT) liabilities.
Responding directly to these concerns, MIRA clarified that its statutory obligations involve enforcing tax legislation, managing national revenue policies, and ensuring taxpayers fulfil their financial obligations strictly within the bounds of the law. The authority stated that selection for audit is governed by a transparent, internationally aligned Compliance Risk Management framework rather than arbitrary enforcement. Under this risk-based approach, MIRA conducts ongoing audits across both tourism and non-tourism sectors, noting that the largest percentage of state tax revenue continues to be collected directly from the tourism industry.
Emphasising equal treatment across the commercial landscape, MIRA underscored that established procedures are designed to facilitate compliance while systematically addressing deliberate non-compliance. "In fulfilling this responsibility, enforcing the law equally among all entities rather than taking into account the type and size of the business has been MIRA's standard practice since inception," the authority stated. MIRA added that while smaller enterprises receive simplified arrangements for bookkeeping and tax filings, wilful tax evasion by any operator is met with strict enforcement measures under existing regulations.
The tax authority concluded that its strategic operations remain cantered on fostering mutual cooperation with businesses to elevate voluntary compliance and enhance state revenue collection. As authorities work to address national foreign exchange liquidity challenges, MIRA maintains that its adherence to the published Compliance Improvement Plan ensures that both large resort conglomerates and local retail entities remain equally accountable under Maldivian tax law.