High Court throws out interim tax case
Interim tax conveys the performance of a company before end of year
High Court of Maldives
High Court has thrown out the case submitted over the nullification of interim tax. The case was filed in Court, stating that the tax was against Islamic principles.
The case was filed in Court on January 5th by businessman and MDP Policy Committee Member Hussain Amru. It was kicked out after the judge decreed that there were no solid legal grounds for the case. Amru was informed of the decision on February 27th, after Amru had sent a letter five days earlier requesting for status of case.
Interim tax is taken on business performance mid-year, based on performance of previous year. the figure is usually half the amount of the previous year’s tax figures.
Amru’s case stated that this essentially violates Islamic business practices, as it is banned to take money based on a projection. Additionally, interim tax violated clauses two, 10, 40, 63 and 65 of the Constitution. As such, the case stated that taking taxes from businesses, assuming that the business will make a profit, is illegally taking over the assets of the businesses.
Amru’s case appealed to protect the rights of the businesses and find a solution for businesses facing difficulties due to the interim taxes.
