Maldives tightens rules for freezing accounts of tax defaulters
Maldives Inland Revenue Authority (MIRA) on Sunday tightened regulations concerning the freezing of bank accounts for those who fail to pay substantial tax amounts.
The amendments focus on revising the conditions for withholding and checking funds in bank accounts.
Under the updated rules, MIRA can freeze a bank account if specific criteria are met. Previously, accounts could be frozen if payments were not made within 60 days of receiving a notice.
The new conditions for freezing an account after notice include:
The unpaid amount exceeds the threshold set by MIRA, excluding penalties and interest.
No instalment payment agreement has been signed.
The non-payment is not due to pending payments from a government agency or a company where the government holds a 100% or majority stake.
No additional funds exist in MIRA's records that could be used to offset the unpaid amount.
The amended rule came into effect with its publication in the gazette on Sunday.
Source: Atoll Times
