Hope Travels Faces Prosecution for Alleged Tax Fraud

Hope Travels, a company providing launch ferry services across Shaviyani and Noonu atolls, has been referred to the Prosecutor General’s Office over allegations of deliberate tax fraud. The Maldives Inland Revenue Authority (MIRA) confirmed that the case will now undergo criminal investigation and prosecution.

According to MIRA, the company is accused of submitting false information in its GST returns from July 1, 2020, to May 31, 2023, and in its income tax filings for the 2020 and 2021 tax years. The investigation suggests that the alleged tax evasion was intentional rather than accidental.

Authorities found that Hope Travels had failed to declare MVR 29 million in income over two years. The company, operating under Hope Holdings Partnership, had also remained unregistered for GST for a significant period despite conducting business activities.

The investigation revealed that nearly 89 percent of the company’s total income was not reflected in GST returns. Hope Travels reportedly failed to declare MVR 54 million in revenue and more than MVR 3 million in GST.

MIRA carried out searches at the company’s offices and collected statements from relevant staff as part of the ongoing investigation.

Following the investigation, MIRA filed charges against two individuals associated with the company:

  1. Shahud Ibrahim Manik, a partner in Hope Holdings Partnership

  2. Mohamed Ali, a senior employee of Hope Travels

MIRA highlighted that under Article 64 of the Tax Administration Act, intentionally evading taxes or assisting in tax evasion constitutes a criminal offense. The authority stressed that it will take strict legal action against anyone found involved in such activities.

This case underscores the importance of transparency and compliance with Maldives tax laws. Businesses operating in the country are reminded of their legal responsibilities to register for GST, accurately report income, and maintain proper tax documentation. Authorities continue to monitor and investigate cases of tax evasion to ensure accountability across the private sector.