Maldives Insight Staff Writer
28 May 2024

The Prosecutor General’s (PG) Office has filed charges against two doctors and two companies involved in providing extensive PCR testing services during the COVID-19 pandemic, alleging intentional evasion of income tax. The charges, filed yesterday at the Criminal Court, follow an investigation by the Maldives Inland Revenue Authority (MIRA) which identified an estimated MVR 20.2 million in evaded tax payments.

The two companies, Pioneer Maldives and Island Health Insurance, were prominent providers of PCR testing services when demand was at its highest during the pandemic. MIRA initiated an investigation after observing that both companies had allegedly submitted understated income tax returns.

Details of Charges

MIRA referred the case to the PG Office, requesting charges against Dr. Ikleel Shareef, identified as a director of one of the companies, and Dr. Ali Abdulla Latheef, director of Island Health Solutions. Charges were also sought against Ali Fayaaz from Boaveli, Adh. Maamigili, who was responsible for submitting tax statements for the companies.

Dr. Latheef faces three counts of intentionally evading tax payment. Dr. Ikleel Shareef and Ali Fayaaz have each been charged with five counts of intentionally evading tax payment.

Regarding the corporate entities, Island Health Insurance has been charged with three counts of intentionally evading tax payment, while Pioneer Maldives faces two such counts. Additionally, Pioneer Maldives has been charged with obstruction of law enforcement and obstruction of other state functions.

Potential Penalties

The PG Office stated that if the charges against the companies are proven in court, they would seek a penalty of double the evaded amount, totalling MVR 40.4 million. For the two doctors, if convicted, the PG Office would request the maximum penalty stipulated by law.