Mike Appel and Gatto accuses MRA of doctoring tax figures

Mike Appel and Gatto Limited has accused the Malawi Revenue Authority (MRA) of doctoring the amount of taxes the company is being accused of not remitting to government.

MRA sealing Mike Appell

MRA sealing Mike Appell

On Monday MRA sealed the company’s offices in Blantyre and Lilongwe and seized a number of cars in its showroom for failing to remit taxes amounting to K1,236,036,927.20.

However, the company through its tax-consultant, is disputing the published figures, and has since described the move by MRA to seal off its offices as unprofessional and a breach of its code of conduct.

Mike Appel and Gatto Limited’s hired tax-consultant, Emmanuel Kaluluma told the local media the figures which the tax-collector has been publishing were not true reflection of how much the company owes government.

He did not disclose how much the company owes government in unpaid taxes.

“An agreed position is that we all have to pay taxes because they help develop our nation. But the law is very categorically correct that the tax-payer has to pay right amount. K1.2 billion is a lot of money,” argued Kaluluma who is managing director for EK Tax Consultant.

Kaluluma said his client won’t be pressured to pay ‘wrong amount of taxes’, arguing they decided to seek court redress on the issue after MRA failed to correct the disputed figures.

He accused MRA of disobeying court order after it managed to evade a High Court order Mike Appel and Gatto Limited through lawyer Frank Mbeta had obtained, stopping the tax-collector from effecting its Distrait Order.

The court order was obtained soon after MRA had already closed down the company’s offices and seized several vehicles from its showroom in Blantyre.

MRA Deputy Director for Corporate Affairs, Steven Kapoloma said if the company was free to take up its grievances with the court of law.

Kapoloma said MRA’s actions were in line with Section 107 (3) of the Taxation Act and Section 40 (2) of the Value Added Tax (VAT) Act.

“This action comes about after all other efforts to have the outstanding taxes paid were duly  exhausted,” explained Kapoloma. “Tax evasion is a serious offence under tax laws and the Malawi Revenue Authority will always endeavor to bring to book all non- compliant taxpayers.”

A summary that MRA issued, shows that Mike Appeal and Gatto had evaded paying K495 million which has attracted penalty and interests of about K741 million.

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.

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).

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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15 thoughts on “Mike Appel and Gatto accuses MRA of doctoring tax figures”

  1. Mkandawire says:

    Are these dues indirect way of financing business houses? If dues are relating to 2011 when exchange rate was 150, assuming 1 million payable. then equivalent usd amount due was $6,666.00. When you pay this today MRA is getting equivalent to $1,333. at 750 exchange rate. Forex gain for payer is $5,333 per million. Multiply by how many millions indirect gain to a defaulted payer.

  2. yakumbuyo says:

    Kapoloma mukadali mu MRA? mukuwoneka ngati MRA ndi ya Family.Yesani kukambirana business yavutandani angagule mgalimoto awo.Makapani akuthawani.

  3. ISUZU 15 Tonnes says:

    Kkkkkkkll miyikolo apello & gattooo, muyisovenge mwaba mokwana agalu inuuuuu, la fourty lakwana.

  4. achimwene says:

    pepani zimachitika

  5. S786 says:

    See who always publish lies here Malawi Government! And some jealous Malawians!! U ppl can’t fucking take it whn u see a rich indian, Arab or Pakistani. U want to arrest someone arrest ur previous presidents and government. If today some Indians or Chinese are not paying taxes and not being legal. Blame ur government and presidents because of ur unequality laws Asians are compelled to not paying taxes etc. when an indian try’s to do something legal this government does not respond and use other means to take money. Same for police officers. When the indian gets caught in something illegal the news spreads like fire. I ask all of u is this the way to stop tax evasion? Is this the way to rule a country? True Government supports its citizens whether their are Indians or Africans. Today u made this news about this Indian business man nationwide, u want everyone to be legal. Why don’t u help ur citizens whether they Indian or black to make things legal and make laws equal for everyone instead of asking for 200000 kwacha for a drink of fanta and instead of shunning the indian businessmen. It wud be better u put equal laws for everyone. Not when the Indian does something u send him to jail. When a Malawian does something his forgiven cuz his my brother this is the main reason tax evasion does not stop and many don’t comply with the law. Blameurselves before blaming others

    1. Kumavalo Amwenye Nsamaonetsa says:

      You don’t like it? leave. Malawi is not India, Arabia or Pakistan.

      Ask yourself, “Why are you here?”

      The answer is to make a living, so you are going to be honest? Who are you kidding?

      You are boasting on being rich, where did you get that wealth?

      You start being rude to the indigenous, they will one day get fed up of you.

    2. Oracle says:

      S786 get one thing crystal clear, you are not indigenous to this country. It is not yours!!

      You relocated here from your country because of goodness knows what reasons to come and try your luck at making a fortune. Fine, that is your human right. Do not then start insulting, cheating and abusing your hosts as if this is now your land because you have resided here for a long period of time.Dont get too comfortable and start taking Malawians for fools because we tolerate your presence among us.
      WE MIGHT GET FED UP WITH YOU AND CHASE YOU OUT!!

      It would be difficult, many would suffer. But its not impossible, it can be done. Suffering is nothing new to us.That wealth which you are boasting about came from Malawians. The least you can do is give back to the indigenous people, whether its through paying bribes or taxes thats up to you and whatever moral principles you may have — just do it and shut up! As you’ve pointed out yourself paying bribes is risky, so it might be smarter to pay taxes instead.

      One last thing,dont call yourself a citizen when all you are doing is enriching yourself whilst contributing very little to this nation.That is insulting to true sons and daughters of this soil. You probably dont even hold a Malawian passport.You are a visitor here and like any other visitor, eventually YOU WILL just get out ………………………………………………………….

  6. Chambe says:

    Pay tax first and dispute later.
    Even if you can hire a lawyer,there is nothing he can do to spare you from paying. He might negotiate payment terms or a small reduction but you will still pay.
    Pay what you owe and you will be off the hook.

  7. ellias says:

    Alipire basi asalire lero ayi. Ifenso amatipana choncho bolanso inu zachita kuswana koma ife amafuna pompo pompo kulipira iyaaa. Lirani koma mulipila basi.

  8. Angoni apaphata says:

    So there’s. Some truth behind this. Kuchikhokhora amati matuvi ndi anga koma mikodzo iyayi. Achewa amati mbwelera. Angoni amati uchidzete.v atumbuka amati chindere chakufikapo. Za asena ndisakambe. Munaba misonkho koma pastime yochuluka choncho? Palinso chifukwa chopangira mulandu a pa. Avomera kale. While the responsible people are serving determine the actual figures. Pali nkhani a pa? Tichite kudikira ngati cashgate? Oweruza inu timakuonani pa. Fb nd I nyasa.

  9. Nyama says:

    Thats what a failed state does always. MRA is doing gud so that someone could have mapwevupwevu at the State House on the other hand killing the workers of the mentioned parastor. These taxes are punitive especially this fringment benefit tax. I dont see companies surving in Malawi, with this try and error economy

  10. Mapwevupwevu says:

    Fakeni! We need to arrest these fucken injuns!

  11. kanchenga says:

    This is a commendable job by MRA. But wait a minute. If MAG does not comply it means it will remain sealed and the innocent employ will go in the street jobless. All because of the punitive penalties that MRA employ will do in order to push you into paying a bribe. When you refuse to pay a bribe. They will use every act in the book to inflict maximum pain on you even to the point of killing an employing company sending innocent citizen on the street. But when govt fails to re-emburse you on overpayment no penalties are charged. That is if you are paid. This is really a failed state. The police are useless that’s why villagers are taking the law in their hands. Imagine burning 7 people as punishment. People dying of hunger and a leader of those people says he has no problem. In Malawi now it is survival of the fittest. Everyone for himself and God for us all.

    1. JJB says:

      What an idiot!!

      Kissing ass.

      PAYE gets deducted from employees, so why were they not paying? and why did the employees not report after filling their tax returns? They do file tax returns?

  12. Abiti mosiwa says:

    Ndiye mukutiuza ife kuti titani? Ife tili ku Admarc tikudikila chimanga.

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