Crossroads Hotel is under investigation for alleged tax evasion through abuse of a duty waiver, Nyasa Times understands.
According to information gathered by Nyasa Times, Crossroads Hotel was granted a waiver of duty by Malawi Revenue Authority (MRA) on a hotel project they are building in Blantyre.
However, the owners of the hotel are alleged to have abused the duty waiver by building personal houses in Area 9 in the city of Lilongwe amounting to US$5 million dollars.
An audit firm is under process scrutinising their cleared documents from MRA and looking at a bills of quantities to make sure the goods cleared were indeed used in the project.
Household furniture for their personal use was used to be cleared under the privilege and others they paid duty on were later claimed back on VAT.
The customs body is also probing allegations by whistle blower on irregular car sales by Crossroads Hotel and car hire namely Sameer Sacranie and Zahir Harun Sacranie
The cars were sold to individuals without proper MRA documents of clearance form c180.
Records at road traffic show that cars were indeed sold without proper papers and officials say it was duty of Crossroads Hotel to make sure vehicles are sold on a clean deal.
A vehicle Toyota fortunes registration number NS9900 belonging to Crossroads was sold dubiously to Apex car rentals in Lilongwe but was then snatched back as businessman Imran Malida was not making the payments.
Malida is said to have corporated with MRA and given a true account of the deals.
MRA investigators have confirmed they are aware of the matters to do with Crossroads Hotel “and investigations are ongoing.”
But they declined to give further details, saying that could jeopardise efforts to unravel details of the matter.
Crossroads Hotel did not respond to Nyasa Times questions and phone inquiries on Thursday and Friday. Despite sending reminders, the hotel management did not respond by the time of going online.Follow and Subscribe Nyasa TV :