High Court has decreed that the role of Civil Court is tax related cases was limited to implementing the tax ruling issued by Maldives Inland Revenue Authority (MIRA).
Civil Court had found in favor of MediaNet, when the company refused to pay withholding tax to MIRA. MIRA filed the appeal in High Court, which had decreed that if a party has an issue with the decision issued by MIRA, they have to inform MIRA of their grievance. The party has all legal rights to file the case in Tax Appeal Tribunal within 30 days of MIRA's response.
The ruling added that MediaNet failed to meet any of the procedures set and that it was well within MIRA rights to file the case in Civil Court. The ruling further added that when Civil Court deliberates and debates on the validity of the case, it was a direct flout of the tax administration system, responsibilities of MIRA, and mandate of Tax Appeal Tribunal.
"Therefore, it is not legally substantial for Civil Court to engage in any other matter instead of implementing the ruling,"
MediaNet had refused to pay the withholding taxes and asserted in Civil Court as such. However, the company as per the procedures had failed to appeal the issue in the Tax Appeal Tribunal. MIRA had filed the appeal in High Court after Civil Court had decreed that MediaNet can refuse to pay the tax.
