The Prosecutor General’s Office (PGO) has filed charges against Island Health Solutions Pvt Ltd, Pioneer Maldives Pvt Ltd, and two doctors over alleged large-scale tax evasion linked to PCR testing services during the COVID-19 pandemic. 

The chargesheets were submitted to the Criminal Court following an investigation that found discrepancies between the companies declared income and figures calculated by the Maldives Inland Revenue Authority (MIRA).

Island Health Solutions faces three counts of intentional tax evasion under the Administrative Taxation Act and one count of obstruction of state functions under the Penal Code, while Pioneer Maldives has been charged with two counts of intentional tax evasion. 

Among the individuals charged are Dr Ikleel Shareef, majority shareholder of both companies, and Dr Ali Abdulla Latheef, a 50 percent shareholder of Island Health Solutions and linked to Pioneer Maldives, each facing three counts of intentional tax evasion. Ali Fayaz, who was responsible for filing the companies’ tax returns, faces five counts of intentional tax evasion.

Prosecutors say the companies deliberately evaded MVR 20.2 million in taxes between 2020 and 2022 by submitting false information in their income tax returns. If proven guilty, the PGO will seek fines totaling MVR 40.4 million, twice the alleged evaded amount.

Investigations revealed that both companies were major providers of PCR testing during the peak of the pandemic, but significantly underreported taxable income. Island Health Solutions also operated the Pearl Medical Center, yet income from services beyond PCR testing was not fully declared to MIRA. The PGO confirmed it will seek the maximum penalties prescribed by law for the individuals involved, citing their roles in managing the companies during this period.