Aishath Asima v MIRA

The Tax Appeal Tribunal (TAT) has held that a payment may be subject to Withholding Tax even if it is made by a person other than the taxpayer and are not recorded in the taxpayer’s books. In reaching its decision, the TAT noted that expenses paid for by another person are also expenses incurred as stated in the Section 10(a) of the Business Profit Tax Act if the payment is made for the benefit of the taxpayer.

The first issue of “Insight” is focused on this decision of the TAT in the case of Aishath Asima v Maldives Inland Revenue Authority.