Tax Reform Project, the Maldives

Client: 

ADB

Ecorys delivered a 2-year project to support the introduction of a Tourism Goods and Services Tax, and a Business Profits Tax in the Maldives. To support this process, Ecorys provided specialist advice to prepare the Maldives Inland Revenue Authority (MIRA) for the collection, audit and administration of these two new taxes. This included:

  • Advising on the preparation of legislation for business profits tax to be presented to parliament.
  • Providing recommendations for regulations to complement legislation on both taxes.
  • Advising on presentations to key private sector stakeholders and developing broader public awareness campaigns in preparation for introducing new taxes.
  • Working with MIRA staff to develop internal procedures for tax collection and administration.

The project also facilitated the procurement, development and implementation of a new IT system for MIRA, including: assessing existing automation levels and IT staff capacity; producing a roadmap for the automation of tax administration functions; advising on the procurement of a suitable IT system; and conducting on-the-job training and mentoring for MIRA IT staff.

Finally, Ecorys established a tax audit unit within MIRA. This included: developing an organisational structure for the unit, identifying information requirements and supporting staff to prepare a taxpayer database; developing specifications for risk based audit; and producing a road map for ongoing development of the unit.