Malawi Revenue Authority seals Mike Appeal and Gatto offices: Updated

The Malawi Revenue Authority (MRA) has sealed the offices of Mike Appel and Gatto Limited in Blantyre and Lilongwe. The car dealer owes government over K1.2 billion in unpaid taxes.

MRA sealing Mike Appell

MRA sealing Mike Appell


MRA has also seized a number of cars in the showroom.

“We have sealed the offices of Mike Appel and Gatto Limited in Blantyre and Lilongwe. The car dealer owes Malawians over K1.2 billion in unpaid taxes. We have also seized a number of cars in the showroom” announced MRA on its Facebook page.

A summary that MRA issued, shows that Mike Appeal and Gatto had evaded paying K495 million which made the company to accumulate over K741 million in penalty and interests. The larger accumulation is on VAT and Corporate tax as the company failed to pay over K232.7 million and K231.6 million in the two categories captured in the table below.

The taxes, according to MRA, are Non-Residence Tax K6,630,193.62–[penalty interest K1,326,038.72]; Withholding Tax K5,909,269.76 [penalty interest K1,181,853.95]); Fringe Benefit Tax K8,848,386.87 [penalty interest K1,769,677.37]; Pay As You Earn (PAYE) K3,890,586.13 [penalty interest K9,986,576.57]; DUTY K5,651,030.01 [interest penalty K1,693,809.00]; VAT K232,671,020.96 [interest penalty K417,840,114.39]; and Corporate tax K231,565,880.22 [penalty interest K307,072,489.62, all totalling to K1,236,036,927.20.

MRA Deputy Director for Corporate Affairs, Steven Kapoloma said distrait order is in line with Section 107 (3) of the Taxation Act and Section 40 (2) of the Value Added Tax (VAT) Act.

“The outstanding taxes comprise VAT at K232.6 million, Corporate Tax at K231.5 million, Customs Duty K5.6 million, Pay As You Earn (PAYE) at K3.8 million and other business taxes. This action comes about after all other efforts to have the outstanding taxes paid were duly exhausted.

“Tax evasion is a serious offence under tax laws and the Malawi Revenue Authority will always endeavour to bring to book all non-compliant taxpayers,” said Kapoloma.

Meanwhile, the Authority has said the Relationship Management (CRM) programme they rolled off in the Large Taxpayers Office (LTO) has proved to be effective as far as improving service delivery is concerned.

CRM seeks to increase voluntary compliance by making it easier for large taxpayers to comply by providing them with information and assistance.

The CRM programme in LTO involves assigning specific desk officers to a particular taxpayer to provide advisory services to enhance tax compliance and ensure that all services required by the taxpayer are speedily attended to.

These services include processing Tax Clearance Certificates (TCCs), Withholding Tax Exemption Certificates (WTECs) and attending to all enquiries by the taxpayer. Desk officers also periodically remind taxpayers on tax due dates and return submissions.

Mike Appeal and Gatto are official dealers and distributors of  General Motors car brands which include Chevrolet, GMC,  Hummer, Opel and Vauxhall. The company is also a distributor of Isuzu motor vehicles and trucks.

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26 thoughts on “Malawi Revenue Authority seals Mike Appeal and Gatto offices: Updated”

  1. dazongo says:

    Ine ndiye zisandikhudze.

  2. Non Investing Investor says:

    Shame! Kaya………

  3. Kanyimbi says:

    Za Kaesara kwa Kaesara basi. Ife tikuvutika kupereka PAYE ndi VAT koma ena ndukumathawa? Bolani akanati azipereka PAYE yokha zikanakhalako bwino pang’ono.

  4. owenzox says:

    hahahaha L.L.O (LAUGHING LOUDER OUT) to our country nw our rate is too low. Think Malawian frm R1 to K40 nw is R47 at bank what about black market so,,,,,, are u making good Malawi?

  5. gotohell says:

    Ma comments ali apa ambiri akufuna amvetse kut hw that amount could be accumulated? I think ndikusadziwa to ask that question. Mutati muone pa ma calculations a MRA pali Principal amt komanso penalty/interest. This means that the company has been paying taxes koma yochepa. They were suppressing sales all along. apa agwidwa and MRA has calculted the exact amount of msonkho including penalities chifukwa amapanaga zolakwika. Its not only for a year akhala akupanga zimenezi ndi kwa nthawi ndinthu. Nde paja amat za kaesara perekani kwa kaesara zonsezo zambuyo akhala akuba akuyenera kupereka. Munthu opereka nsonkho amapanga ma calculations ekha kut wapanga ma profit okwana mwakuti ndiye akupereka nsinkho mwakuti mwaiye yenkha. Nde MRA imapeza njira zina ndikupeza kuti company kapena munthu amanama kuti amapanga ma profit ochepa. Instead of congratulating MRA for a job well done, muli busy kumakamba nkhani zosathandiza. Asiyeni omwe amadziwa zinthu kuti zimayenda bwanji apange comment coz ambirinu simudziwa kuti zamisonkho zimayenda bwanji. Kut MRA ifike pokutsekera company jux know kuti the company has been playing hide and seek not to settle its liabities.

  6. Concerned says:

    This is just a tip of the iceberg.MRA and other departments are not doing their job properly.The economy is not growing bcoz we are too relaxed and certain pockets of society are taking full advantage.Dont just point fingers at government all the time when some of these problems are clearly our own fault.

    How can a company be allowed to accumulate K1.2b in taxes?How many more people are doing this and getting away with it?Where is our forex?Why are companies this big and this rich not exposed to mandatory listing on the Malawi Stock Exchange when they are clearly in the public interest?MSE is a 14 company joke up to today,ordinary citizens dont benefit from it in any way.

    Fellow Malawians its time to wake up.Our children cannot be going to bed hungry whilst this goes on right under our noses.

  7. Benjones says:

    This is the same guy who presented a hummer to the late president. He will soon get away as miscalculation. All this Asians are criminals who have looted our mother Malawi. Check on this guy who owns apex next to unilever he calls us black people monkeys and is involved in heavy money laundering.

  8. Real man says:

    MRA is sleeping. There is an Indian who can run and feed Malawi for even one year. Hos name is Mayul and his number is 0995 967 150 he bought 75,000 tons of maize at K70,000 per ton and he is selling at K280,000. Someone donsome sums and calculate tax at 30%. Just do K280,000 minus K70,000 x 75,000 tons x 30%. Am geting Error my calculator is too small to contain the taxable amount. There is another one uyo ndiye has 50% of the forex that MALAWI as a government has. He runs Chambo Fisheries pongobisalila. MRA tulo kulimbana ndi amalawi olila osauka.

  9. Sunder says:

    What about Lido he has to pay
    Mk 450 billion he is the biggest crook he has properties worth more then the amount owed arrest him Malawians are suffering and he is enjoying with TWO wives

  10. Mr Blantyre says:

    You need to investigate within MRA. Pali wina amene amawalimbitsa mtima…those guys must have paid a love of money over the past years. Somebody who told them not worry because he was in control. Somebody must have cashed in a lot of money there! Please chonde fufuzani bwino bwino ma bukhuwo!

  11. The Truth says:

    You sensationalise about a business which has been operating in Malawi for over 50 years owing ‘Malawians’ MK1.2bn… How about MRA stop harassing citizens, and begin adding up and dealing with how much ‘Government’ owes Malawians… We are still the beggars of Africa, more than how many years after so called independence?? Failed State, Failed Government.

  12. wa ku Mitchesi kujaaaaa!!!! says:

    This is not the only one not paying taxes. Most thriving business are not paying taxes because MRA is fast asleep. Especially our Malawians of roots from the middle-east . Mike Appel may just not have offered a good sum this would not have been an issue. Can still try anyway its not too late pressure will run down on MRA and all will be quite soon. we are waiting probably before end of the week!

  13. amangwetu says:

    Tomorrow the mwenye will go to court, become a well wisher like Mapeto then the files will burn at msonkho house and then things will get back to normal.

  14. John MCHEKA says:

    Inunso a MRA vuto mulinalo bwanji munawasiya mpaka ngongole kufika pamenepo
    chonsecho mukuziwa kuti anthu masiku ano sakugula galimoto za brand new koma za Dubai
    Mavuto alipo

  15. The Partriot says:

    This is a very good development, hopefully these cases will be pursuid to the end and no corruption will be involved. We dont want to hear the case has been dropped and Mike Appel directors have suddenly become well wishers of the ruling elite!!! Tikazangoona zimenezo tidzdziwa amene akupangitsa kuti dziko lathu likhalebe losauka!

  16. With that huge amount,komadi mma office ku Mw anthu akugonadi kwabasi,inu,2billion???mmmm something fishy is going on ku MRA.

  17. poor malawian says:

    Next should be Lattiff of mapeto. All his goods come in duty free and he does not pay any tax.MRA Fears him becoz he boasts of being backed by president and mwanamvekha. Poor Malawian are suffering!!

  18. What about Hard to Defeat…aka HTD of Majid Aboobakar?

  19. Nyabanda says:

    How can MRA allow to be owe such huge amount? 1.2 billon? Why did you allow such huge amount to accumulate in arrears in the first place? You make as suffer @ board posts with our few items. Kulanda ufa wa K200,000.00 business kuthere pompo.

  20. Mapwevupwevu says:

    Its good that Malata was brought to MRA he is no nonsense manager. Achina John Biziweki ankangolandira ziphuphu!

  21. John says:

    Holly shit… i vote these guys make a business at the end of the day. Three story should have included of how long they haven’t paid the taxes because that amount is huge, it shoukd have been accumulating over a certain long period of time. No wonder the country is in shambles. The country survives on tax payers. If no tax paid then economically, there is no country.

  22. Mswachi says:

    Mabwana aku Mike Apel and Gatto kuumira.anzanu amahonga. Mwavulala chifukwa cha kupusa.

  23. ULEMU says:

    MRA all this time where were you for that someone can have this huge amount mukungomuyang’ana?Vuto munyanya katangale moti alipo amene amadya.Ife timazunzika ndi business ya 50,000 koma mumabwerabe kuzatibers nanga awa nthawi yonseyi anali kuti osalipira msonkho. Alipire ndip amalawi adziwe kuti alipira

  24. Zapadziko says:

    Business is not going well for the motor dealers with the rising inflation but that should not be an excuse for not honouring their tax..

  25. Cheyo the real northerner says:

    somewhere somehow! some questions need to be thoroughly asked before coming to a conclusion. How come does such a huge accumulation arise without the tax collecting body detecting it. There a lot of questions than answers. MRA, mind you, we are not ignorant.

  26. MARIO BAMBHI says:


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