The Maldives Inland Revenue Authority (MIRA) has issued a circular advising all taxpayers to ensure their accounting software and Point of Sale (POS) systems are fully compliant with tax laws and regulations.
The warning comes amid concerns that many businesses are failing to maintain the complete documentation required for tax purposes.
The circular stresses that it is the legal responsibility of every taxpayer to maintain accurate records in line with Section 27 of the Tax Administration Act and Section 14 of the Tax Administration Regulation. These regulations mandate that comprehensive documentation must be kept for all business activities.
While MIRA supports the use of electronic and digital formats for record-keeping, it warns that the software and systems used must be configured to capture all necessary information. This includes being able to generate specific reports for particular information upon request.
The authority emphasised that adequate documentation is crucial for verifying the accuracy of figures submitted in tax returns. If taxpayers fail to maintain or provide sufficient records, MIRA may not accept the declared amounts during an audit.
Taxpayers who manage their business records electronically or digitally are therefore urged to re-evaluate their accounting systems and POS machines. By doing so, they can ensure full compliance with the law and avoid potential issues during tax assessments, MIRA said.
The move reinforces MIRA's ongoing efforts to enhance compliance and address risks such as improper record keeping and under-reporting of revenue.