MRA evades court order on Mike Appel K1.2bn tax evasion

The Malawi Revenue Authority (MRA) on Monday managed to evade a High Court order Mike Appel and Gatto Limited had obtained, stopping the tax-collector from sealing its offices over K1.2 billion unpaid taxes.

MRA sealing Mike Appell

MRA sealing Mike Appell

MIKE APPEALMRA sealed the offices of Mike Appel and Gatto Limited in Blantyre and Lilongwe and seized a number of cars in the company’s showroom for failing to remit taxes.

But the company through a hired private practicing lawyer, Frank Mbeta obtained a court order stopping the tax-collector from effecting its Distrait Order.

However, the court order came in too late as MRA had already closed down the company’s offices and seized several vehicles from its showroom in Blantyre.

It is yet to be seen what next step the car dealer who owes government K1, 236,036,927.20, is going to take.

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).

MRA Deputy Director for Corporate Affairs, Steven Kapoloma said the Distrait Order was 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 Endeavour to bring to book all non- compliant taxpayers”

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.

The hiring of lawyer Mbeta will somehow raise eyebrows considering that he was once accused of bribing MRA officer to delete information relating to a businessman charged of tax evasion.

According to the Anti-Corruption Bureau (ACB) deputy Director, Reyneck Matemba,  Mbeta last year offered MRA information and communications technology (ICT) security manager Wilson Upindi K2 million to delete information from three computers seized from businessperson Shiraz Ferreira on his arrest in October 2014 on tax evasion charges.

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9 thoughts on “MRA evades court order on Mike Appel K1.2bn tax evasion”

  1. ochimwe says:

    Ife nde kutipana kuti tilipire ka toyota, koma amwenye nde akunjoya zizatha one day.

  2. Keegan Richie Pagone says:

    Bunch of crooks

  3. Dikisan says:

    Kugwira ntchito ku MRA chimodzimodzi kugwira ntchito mmboma. Anthu amakhalira kudzilemeretsa. Uwu ndi mgodi wa gold wawo. Unu vuto lanu ndichani?

  4. Guantanamo says:

    Owner of Mike Apell and Gatto is very boastful, pompous and rude. Has several times over the yrs boasted that he can’t pay tax to govt. He has said that most senior managers at MRA are his ‘boys’. And I think he was right. This particular case will or will not vindicate him. Malawians will closely watch the progression of this case. M’mwenye uyu ndi wolemera Kwambiri simply coz of non remittance of tax. But soon he will donate a few vehicles to DPP and the case will be closed. That’s what HTD does.

  5. Kaziulika Chimugonda says:

    MRA, that is commendable. However, we wonder why MRA has not done the to Gani for his mercedes Benz and other vehicles. This is selective justice. Do the same to all Indians evading duty and taxes including Mapeto. Do so now!

  6. Still positive about Malawi says:

    The sad part about Malawi is that this story like any other Indian connected story will die a natural death after people in high places get some gifts.
    Where is Siku case, Ferreira case, Lido Electricals…all of them evaded tax and were in this same situation but they walked. We never heard of even them paying anything to MRA

    Malawi tikuononga tokha. Azathawa day 1 cause their money they take out. You and me will have no backup Wina atalipikula dziko la Malawi

  7. Mwenyeheri says:

    People like Mike Appel and gatto are the ones that rae making this country poor MRA continue with the good work,please seal more of these people.

  8. smart says:

    This govt,is full of thieves from the president ,ministers,all staff at MRA.Mike Appel may reveal several MRA STAFF involved in this deal.there is no way MRA could wait this long for taxes to accumulate this much,someone big At mra is involved.stupid current gvt

  9. ellias says:

    Achita bwino, ife eni nthaka tikuvutika kulipira ndi ma Vits osatipatsa ntaji. Ku MRA kuunikidwe, ambiri alemera chifukwa chopanga ma deal ndi amwenye.

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