Malawi court convicts Chinese business woman over tax fraud: Fined K1 million

Blantyre Magistrates Court  has convicted Feng Shaohong, a Chinese national, co-owner of ABC Shop in Blantyre for failing to issue and retain an Electronic Fiscal Devices (EFDs) receipt.

According to a Steve Kapoloma, Malawi Revenue Authority (MRA) Deputy Director of Corporate Affairs,  Shaohong in February this year failed to issue and retain a fiscal receipt after selling assorted items worth MK 60, 590 to a customer at her shop’s premises in Blantyre.

The intention of not using the EFD was to evade payment of Value Added Tax (VAT) to the Malawi Government which is contrary to Regulation 28 (2) of the Value Added Tax (Electronic Fiscal Devices) Regulations and Section 63(1) of the Value Added Tax Act (Cap. 42:02)

On 23 June, 2015, the Court convicted the trader and sentenced her to a fine of MK1,000,000 or 18 months imprisonment in default.

Shaohong has since paid the fine  and a court order to redirect the paid funds to MRA has been issued.

“MRA is reminding all VAT registered businesses to always comply with EFD regulations by using the EFD machines honestly and issue fiscal receipts to their customers,” Kapoloma said.

“MRA  is appealing to the public to help in the implementation of the use of the EFDs by demanding receipts and report any suspected malpractice relating to the EFDs.”

MRA is also encouraging all businesses who want to register for VAT to inquire the tax regulatory body.

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Tamanda Banda
Guest

Kuba kwayambira ku MRA komko

Rich nduna
Guest

Imadya pomwe aimangilira.olo abusa akumalalikira chopereka..wat more boma or okhometsa tsonkho!! Musova

yosefe gambatula
Guest

Simungamukwanitse.mu Chinese.Malawians are too sleepy for the Chinese.Amaliza Maiko eni eni otukuka with tight controls.Paja aliyense wofiira khungu Ku Malawi ndi foreign investor.Muli madzi.

Zexe
Guest

MRA should have overseers in town to monitor shop transactions in every TCs or towns/cities. It’s easier n cheaper that way.

Charter
Guest

1M yachepa! Mukanamlanga ndi K60M fine ameneyo. Ndiponso, she derves to have her visa and work permit revoked azipita kwawo.

Peter wa muthaliza jobe moya
Guest
Peter wa muthaliza jobe moya

Anyani inu ndalamazo mukatelo muzinenepetsela mimba zanu stupid

BEST ADVICE
Guest

The chinese was simply trying to make her goods cheaper so that rh poor malawian customers should not fail to buy becoz if she adds tax to 60,000 itl b around 85,000 ..MRA is also a thief

Zakeyo
Guest

The truth is: the Chinese lady did not ‘discuss’ with MRA officers. She refused to pay them and they fed her to the dogs!!

Phwado
Guest

K1 million is just too much.APM stealing too much.

Masoambeta
Guest

Who stole the 9.2bilion and why is he or she not getting arrested??

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