Criminal Court to hear tax evasion charges against doctors accused of concealing pandemic era revenue

The Criminal Court is preparing to begin the trial of two companies, Island Health Solutions Pvt Ltd and Pioneer Maldives Pvt Ltd, along with two doctors, over allegations of large‑scale tax fraud.

The case against Pioneer Maldives Pvt Ltd, owned by Dr. Ikleel Shareef and Dr. Ali Abdulla Latheef, has been formally submitted to the court, with hearings scheduled to begin next week. Both doctors are also shareholders of Island Health Solutions Pvt Ltd.

Charges against Island Health Solutions Pvt Ltd

• Three counts of intentional tax evasion under Article 64 of the Administrative Taxation Act  

• One count of obstruction of state functions under Article 533 of the Penal Code  

Charges against Pioneer Maldives Pvt Ltd

• Two counts of intentional tax evasion under Article 64 of the Administrative Taxation Act  

Charges against individuals

Dr. Ali Abdulla Latheef:  

• Three counts of intentional tax evasion  

Dr. Ikleel Shareef and Ali Fayaz:  

• Five counts of intentional tax evasion  

According to prosecutors, the companies deliberately evaded MVR 20,200,401 in taxes between 2020 and 2022 by submitting false information in their income tax returns, compared to figures calculated by MIRA based on actual income.

The Prosecutor General’s Office said it will seek a fine of MVR 40,400,802, twice the amount of the alleged evasion, if the charges against the companies are proven.

Prosecutors said the individuals were charged based on their managerial roles. Dr. Ikleel is the majority shareholder of both Island Health Solutions and Pioneer Maldives, while Dr. Ali Abdulla Latheef holds a 50 percent stake in Island Health Solutions and played a leading role in managing the companies during the COVID‑19 pandemic. Pioneer Maldives is also a company in which Dr. Ali Abdulla Latheef has an interest.

Ali Fayaz was responsible for filing the companies’ tax returns. Prosecutors said they will seek the maximum penalties prescribed by law for the individual defendants.

The charges stem from allegations that the companies submitted false information and fraudulent declarations in their tax returns from 2020 to 2022.

Investigators found that Pioneer Maldives and Island Health Solutions were among the leading providers of PCR testing during peak pandemic demand, but had significantly underreported taxable income. Island Health Solutions also operated the Pearl Medical Center clinic during the same period, yet income from non‑PCR services was not fully declared to MIRA.