Crossroads Hotel probed over ‘tax evasion’

Crossroads Hotel is under investigation for alleged tax evasion through abuse of a duty waiver, Nyasa Times understands.

Crossroads Hotel reception

Crossroads Hotel reception

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.

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10 thoughts on “Crossroads Hotel probed over ‘tax evasion’”

  1. Hebdo says:

    Unfair world. I lose 30% of my MK50,000 a month salary to tax, I pay 16.5% tax when I go to buy a packet of sugar and a bar of soap. Others make millions of kwacha a month, not even a tambala being lost on tax.

  2. Pepa says:

    Forget everything read this
    Hanif chome hanif OG and modhin daid wholesalers are in partnership buying millions of Dollars of properties in Malawi meaning billions of kwachas can MRA and ACB kindly check where this money has come from and are taxes paid for theese all the OG money comes from pakistans
    Al kaida and taliban the whole family comes from pakistan can the government involve FBI as the profits are sent back to fight the americans in yemen syria etc. and all the properties nd industries which make profits in malawi partially the funds to sponsor terrorism take action now

  3. Thera says:

    Chibalo iwe wa sanje….your brain box is empty so you should hate yourself MWENYES have brain to make money you are a failer ok!!!!

  4. Thera says:

    Benjones you are and sound wopusatu

  5. Mabvuto says:

    Property grabbing , the government is scaring away investors and well established Malawian business people.

  6. Chibalo says:

    MRA you have been sleeping all along.You have lost billions of kwachas for your people.Your people if i may say it matter of fact,are poor because of Indians.Government always develop cold rings when dealing with Amwenye because Politicians have benefitted alot from them than Malawians in general.
    Is it not a surprise why we dont hear of an Indian questioned in Cashgate scandal?Are we not surprised that in our Prisons,we cannot find Indians who by the way are Malawians of Asian origin?Do you mean these dont commit any crime in our Society?Have you observed my fellow Malawians that while we are seriously complaining that our forex reserves are not adding up, these Indians at the same period can afford to buy very classic cars worth millions of dollars and that the same government gives them forex?This is nonsense.
    Have you observed that Amwenye can build substandard structures anywhere in town even closer to the roads in the full view of government and city Assemblies and nothing and Nothing i repeat happens to them?But when a Malawian just tries to apply bwaa zipsinjo zache? This is stupidity indeed.
    You go to his house and Indian will boast of having thousands of dollars in his house and yet nothing really happens to monitor their transactions.You cannot even report to anyone because nothing will happen.

    We all know this even our government with all the machinery knows this.Our Mps know this and even the whole parliament knows this.I thought these are the things you horable members you ought to discuss?

    Ndiye inu a MRA you should have waken up kalekale in MCP we say kwachaaa! because basically this country is still sleeping alot..


  7. jojo says:

    Can MRA even probe them on the hiring out of the conference facilities thy are not declaring the full amount thy are charging there clients especially Indians a suppressed amount in order to evade tax thy are even under declaring wen it comes to wedding functions which indians usually hold in the evenings a few examples are
    Thy should be probed on the functions that were held in December 2015
    Wedding for the daughter of OG ISSA
    wedding for the daughter of the owner of WORLDWIDE INVESTMENT
    JANUARY 2016
    Wedding for the son of EM RANDERA AND CO


  8. jojo says:

    More to here this is not the only allegations

  9. informant says:

    Nice story lot more to be written

  10. Benjones says:

    Mwenye awa they are all with deals with MRA. Why do you think they drive posh cars and build mansions. They have for generation been stealing from is. One mwenye is worth half of our country’s wealth and we just look at then like anthu wo pusa.

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