Attorney General's Office has stated if tax must be paid from the payments made to GMR Group, it must be paid by the state and Maldives Airports Company Limited (MACL).
In 2010, GMR entered into an agreement with MACL and Ministry of Finance and Treasury for the rehabilitation, expansion, modernisation, operation and maintenance of Ibrahim Nasir International Airport for a period of 25 years. However, in 2012, the Government of Maldives issued a notice stating the concession agreement was void ab initio and MACL and finance ministry had no authority under the laws of Maldives to enter into an agreement with GMR. The action resulted in MACL taking over possession and control of the main airport of Maldives.
In October 2016, the tribunal, in the arbitration proceedings commenced by the government and MACL against GMR, issued its final award in relation to the compensation the government and MACL would have to pay GMR for the termination of the Concession Agreement. The tribunal awarded GMR a sum of approximately USD 250 million as compensation with interests which arose from the four years since cancellation. Accepting the final award of arbitration, in November 2016, MACL settled the total amount to GMR.
In the letter sent following the settlement, MACL gave assurance that no tax is to be paid as the state detailed of no tax payment in relation to award money paid to GMR.
However, in a statement issued by Attorney General's Office, it is stated at the event of Maldives Inland Revenue Authority (MIRA) declaring tax must be paid from award money, it must be borne by the state and MACL.