The Maldives Inland Revenue Authority (MIRA) has submitted a request to the Prosecutor General's Office (PG) for a criminal investigation into alleged tax evasion by Kaani Hotels.
Kaani Hotels, one of the largest guesthouse operators in the country, runs four hotels in Maafushi. They are Kaani Palm Beach, Kaani Village and Spa, Kaani Beach Hotel and Kaani Grand Seaview.
A MIRA press release states that Kaani Hotels is under investigation for allegedly submitting false information in their green tax, GST, BPT, and income tax statements between 1 January 2019 and 30 September 2022.
The tax authority stated that this is believed to have been a deliberate attempt to evade taxes. Notable points in the MIRA investigation include:
- The tax statements submitted by Kaani Hotels to MIRA not including information about all the guests visiting their guesthouses and hotels
- Failure to report the information and income from tourists arriving via foreign tour operators and those arriving as free independent travellers
- The majority of income from airport transfers, restaurants, spas, and excursions not being included in the statements submitted to MIRA
The names of two directors from Kaani Hotels and Tours and Asna Investments, Abdulla Nasheed (Kaani Ablo) and Aminath Asima Saleem, along with Aishath Razna, who was responsible for business accounts, have been forwarded to the PG in connection with the alleged tax evasion.
MIRA stated that tax audits have shown an additional $800,000 (MVR 13.3 million) owed by Kaani Hotels. The company has been instructed to pay the outstanding amount, they said.
Kaani Ablo is also the President of the National Hotel and Guesthouse Association of the Maldives. The company has begun expanding its guesthouse business to other islands and is also in the process of developing a resort on Medhufinolhu in Vaavu Atoll.
