Pioneer Maldives Pvt Ltd and Island Health Solutions Pvt Ltd have been charged with tax fraud in connection with the alleged evasion of more than MVR 20 million in taxes.

The Prosecutor General’s Office said the companies deliberately evaded tax payments and now face criminal charges. If found guilty, the companies could be fined MVR 40.4 million, double the amount allegedly evaded.

Directors Dr Ikleel Shareef and Ali Abdulla Latheef have also been charged. Island Health Solutions has been charged with three counts, including intentional tax evasion and obstruction of law enforcement and state functions. Latheef, a director of Island Health Solutions who also had an interest in Pioneer Maldives, faces three counts of tax evasion.

Pioneer Maldives has been charged with two counts of intentional tax evasion, while Dr Ikleel Shareef, a director and majority shareholder of both companies, faces three counts of tax evasion. Ali Fayaz, who prepared the financial and tax statements for the companies, has been charged with five counts of intentional tax evasion for failing to comply with reporting obligations.

The Maldives Inland Revenue Authority (MIRA) said the companies were major providers of PCR testing services during the COVID-19 pandemic. Investigations found that significant income from PCR testing and other medical services between 2020 and 2022 was not reported, and that incorrect costs and expenses were declared to reduce tax liabilities.

MIRA said Island Health Solutions reported MVR 31.9 million in taxable income, while large amounts of income were omitted from tax filings. Both companies were ordered to pay an additional MVR 23.7 million in tax as a result of the investigation.