Parliament accepts bill to double tax appeal deposit to 50%
The existing law requires a payment equivalent to 25 per cent of the disputed amount.
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Parliament on Tuesday accepted a government-sponsored bill seeking to increase the deposit taxpayers must pay before challenging tax assessments issued by the Maldives Inland Revenue Authority (MIRA) at the Tax Appeal Tribunal.
The proposed amendment to the Tax Administration Act would raise the minimum payment required before filing an appeal from 25 per cent to 50 per cent of the disputed tax amount. In certain cases, taxpayers would be required to pay the full disputed amount before proceeding with an appeal.
The bill was submitted on behalf of the government by Funadhoo MP Mohamed Mamdhooh of the ruling People's National Congress (PNC).
Parliament voted to accept the bill for consideration and referred it to the Economic Committee for further review.
The motion to accept the bill received 54 votes from PNC MPs, while 11 MPs from the opposition Maldivian Democratic Party (MDP) voted against it.
According to the proposed amendment, taxpayers who disagree with a tax assessment issued by MIRA would be required to settle at least 50 per cent of the disputed amount before submitting an appeal to the Tax Appeal Tribunal.
The existing law requires a payment equivalent to 25 per cent of the disputed amount.
The bill also introduces a requirement to pay 100 per cent of the disputed tax amount before appealing assessments involving certain transactions.
These include transactions specified under the Income Tax Act and the Goods and Services Tax (GST) Act, including arrangements involving the deduction of tax payments.
Under the proposed changes, taxpayers disputing assessments related to these transactions would have to settle the entire amount under appeal with MIRA before bringing their cases before the tribunal.
The government has stated that the amendment is intended to establish circumstances in which taxpayers must pay the full disputed amount before challenging a tax assessment.
The proposed requirements would take effect once Parliament passes the amendment and the legislation is ratified and published.
The bill will now be examined by Parliament's Economic Committee before being returned to the chamber for further consideration.
