Malawi Revenue Authority arrests 8 businesspersons over VAT offences

The Malawi Revenue Authority (MRA) has arrested eight Value Added Tax (VAT) business operators for non-issuance of and failure to retain fiscal receipts.

Kapoloma:  Comply

Kapoloma: Comply

The offences are contrary to Section 46 of the VAT Act (Cap. 42:01) and regulation 28 (2) of the Value Added Tax Electronic Fiscal Devices Regulations, 2015, respectively.

The arrested eight Blantyre and Lilongwe based tax payers are Weionong Ji of Jifa Supermarket. Amini Karji of A H Karji ,  Hassan Usman of Sky Electronics shop, Ms. Cecilia Nkamana of P & B Wholesalers, Ms. Sarfaraz Ismael Patel of Zeenat Beauty, MHamid Kazi of Hadid Enterprises, Emerix Anorue of CEA Enterprises and Steve Prince Storey  of  Prince and PH Trading.

“They were arrested for failing to issue and retain fiscal receipts. Processes are underway for the eight to appear in Court and if convicted, they stand to pay EFD fines ranging from a minimum of MK500,000 for non – usage of the device to MK5,000,000 for fraudulent usage  or be sentenced to imprisonment,” said Steve Kapoloma, MRA Deputy Director of Corporate Affairs.

He also MRA appealed to all consumers to demand fiscal receipts and report any alleged malpractices involving the usage of the Electronic Fiscal Devices (EFDs).

By demanding fiscal receipts or invoice, VAT operators will be forced to use the mandatory Electronic Fiscal Devices (EFDs), which were introduced to curb tax evasion by non issuance of tax invoices.

According to the Authority, some VAT operators are not using the machines as consumers just walk out of shops without demanding receipts for the items bought or services rendered by the taxpayers.

EFDs were implemented to enhance revenue collections by ensuring tax compliance of VAT Registered taxpayers through the use of the Electronic Tax Registers (ETRs).

“It is criminal not to use the Electric Fiscal Devices. We will clamp down on those that are not using the machines and the law will take its course,” he said.

Kapoloma said to ensure compliance, buyers should be demanding a tax invoice or fiscal receipt generated by the EFD as this is the only way a taxable transaction will be captured.

EFDs provide evidence of sales transactions in a “technically easy and undisputed way” as the daily sales transactions are summarized before being transmitted to MRA’s main server.

Meanwhile, the Authority is reminding all taxpayers and the business community that it is their obligation and responsibilty to come to MRA offices to settle tax liabilities by themselves.

Any delay or failure to remit taxes would result in MRA asking for the taxes due plus penalties in accordance with law, according to MRA Acting Commissioner General Roza Mbilizi.

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john
Guest

Chiyambileni kutolera misonkhoyo why is it that the prices of the commodities still goes up.Life is still hard though w demand fiscal risit so what’s the purpose? Waste of time mungofuna polemelerapo.God will punish you its never 2late

Bristone Mabichi
Guest

When I ask to ask: who are these defaulters and fraudsters? You tell me they are Malawians of Asians origin. Why not Malawian of Dedza origin? Of the 8, how many originate from corners of Malawi? None of these fraudsters are appearing on CASHGATE. To reclaim this nation, someone will have to pay a heavy price.
Just wait, we are carefully watching. Idi Amin Dada of Uganda saw it and acted, sanaipe anakwaniritsa …

basa
Guest

palinso mwenye wina trading as AUTOWORLD selling motorvehicle spare parts opposite DEEKAY SUPPLIES naye akuziona ngati ochenjera , sakupeleka VAT RECEIPTS. MRA take note. i have warned you.

chizamsoka munthali
Guest

Tidzidimanda receipt??????” Tatiuzeni Kaye 500 chakuti billion anadya ndindani

Thokozani Semu
Guest

Okay Mr Vat

Thoccolino
Guest

Zipatala zaboma pano tikulipila tax imapita kut? Sukulu za Boma tikulipila, what is a risiti?

Tina
Guest

Okay

Phwado
Guest

My tax to be abused by this brainless president?And u cant force me to ask for a receipt.F*#@k ya!

Prodigalson
Guest

What kind of creater is vat?

Vincent
Guest

The payroll tax is enough for me to shit in my pant, so why should i demand a receipt of VAT if price of goods without VAT is cheaper? Mitu yanu ikugwira koma? I hate taxes period!!!!!!

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