The Maldives Inland Revenue Authority (MIRA) has requested the Prosecutor General’s Office to press charges against two doctors, Pioneer Maldives Private Limited and Island Health Solutions Pvt Ltd, over alleged tax fraud.

MIRA said the two doctors involved are directors of the companies. They include Dr Ikleel Shareef, Director of Island Health Solutions Pvt Ltd, and Ali Latheef. The authority also requested charges against Ali Fayaz, who prepared the financial and tax statements of both companies, for allegedly submitting false information.

In a statement, MIRA said the companies were among the main providers of PCR testing services during the peak of demand caused by the COVID-19 pandemic. However, investigations found that a significant portion of their income was not reported in their tax filings.

MIRA said Island Health Solutions Pvt Ltd, which operates the Pearl Medical Center, provided PCR testing and other medical services during the 2020, 2021 and 2022 tax years, but failed to report its full income. The company reported MVR 31.9 million, while a large portion of its revenue was not declared.

The investigation also found that Pioneer Maldives Private Limited, one of the earliest providers of PCR testing in 2020 and 2021, did not include revenue from the service in its financial statements or income tax returns. MIRA noted that incorrect cost of sales and administrative expenses were deducted to reduce the tax payable, particularly in 2021 when revenues were unusually high. Unreported income for Pioneer Maldives Pvt Ltd amounted to MVR 102.7 million for the 2020 and 2021 tax years.

MIRA ordered Island Health Solutions Pvt Ltd and Pioneer Maldives Pvt Ltd to pay MVR 23.7 million in taxes and has requested the Prosecutor General’s Office to pursue criminal charges in the case.