Chinese tax evaders arrested in Malawi: MRA says conducting further probe

Barely a week after the Minister of Finance and Economic Planning, Joseph Mwanamvekha, committed of more tax enforcements to safeguard government revenues, two Chinese traders have been arrested in Blantyre for tax evasion offences.

The two Chinese traders who were arrested being processed by MRA

According to the Malawi Revenue Authority (MRA) the two are Jiang Peng of United Manufacturing Company Limited and Yuan Chenggang of Herocean Enterprises.

“They have been arrested for violations of the Value Added Tax (VAT) Act which led to tax revenue losses of over half a billion Kwacha between April to September this year,” said MRA’s Head of Corporate Affairs Steven Kapoloma.

In his inaugural national budget statement presented to Parliament last week, Mwanamvekha said the Ministry of Finance in collaboration with MRA will continue to monitor taxpayer compliance through risk based audits and enforcements.

Kapoloma said some documents seized from the two companies indicate that Herocean Enterprises did not charge VAT on certain sales resulting in the evasion of K580.9 million.

“United Manufacturing Company Limited in Blantyre sold motor vehicle batteries without charging VAT, evading K45 million in the process. The operation followed a tip from well-wishers,” said Kapoloma.

The suspects are currently at Blantyre Police Station as the Authority conducts further investigations.

Government is expecting K1.3 trillion tax revenues to be collected by MRA to finance the recently presented K1.7 trillion national budget for the 2019/2020 financial year.

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National CEO
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National CEO

These Chinese traders love Malawians, Our taxes are abused by other people. By not charging tax, it means people were buying at a less price. (Enjoying our tax).

tiko
Guest
tiko

Its a sindicate.

Teacher Mpamila
Guest
Teacher Mpamila

Lots of shops in BT, MZ, ZA and LLz are doing this,,,They don’t give MRA receipts and where is MRA? No routine checkups on compliance but always working on tips as if they share their salaries with us,,,,

mpilu
Guest
mpilu

ndi amodzi anthuwa. mwananveka amadyaso momwemo ndi geni yake ya nkhuku ikuenda bho ija. ndani sakuidziwa.
total shit

Justice Usiwa
Guest
Justice Usiwa

There is someone who is shielding these people in the Government. In construction ,!they people pay labourers and subcontractors as they want.When they take them to court they always connive with court personnel and block citizens. Locals are treated like tamed animals.

Jill Greene
Guest
Jill Greene

Very unfair and untrue statements, with no proof. Better to avoid posting such untruths, it can be construed as slander.