Tribunal Declares MIRAs Decision Invalid, Orders Re-audit

On 15 May 2019, the Tax Appeal Tribunal decided, by way of majority decision, in favor of the Appellant, Maldives Passions Private Limited and ordered the MIRA to re-audit the taxable periods under dispute in the appeal case.

The Tribunal, with a majority of two to one, deciding on two issues determined, firstly that, output tax must be declared at the rate GST was charged, and the MIRA has the power to order the payment of that tax pursuant to Section 13(d) of the GST Regulation, and secondly, that there are major discrepancies in the MIRAs tax computation for the audited taxable periods. The tribunal hence annulled the decision of the MIRA ordering a re-audit of the taxable periods under dispute.

The Tribunal in its decision, ordered the MIRA to refund the assessed amount to Maldives Passions in accordance with the law, and conduct a re-audit for the disputed taxable periods.

Maldives Passions was represented by Lawyers and Tax Advisors of CTL Strategies.

(Photo credits: Tax Appeal Tribunal Website)