Convicted trader fined K1m for flouting Malawi tax regulations
The Lilongwe Magistrates Court has convicted Silvia Ng’ombe of Trinity Auto Parts for failing to issue and retain a fiscal receipt after selling goods worth K63,000.
the Malawi Revenue Authority (MRA) Deputy Director Corporate Affairs, Steven Kapoloma, said Ng’ombe was arrested on February 12, 2015 during a compliance monitoring exercise conducted by the tax collecting body.
“Ng’ombe is a shop attendant at Trinity Auto Parts and on the day of her arrest she failed to issue a fiscal receipt with intent not to use Electronic Fiscal Device (EFD) thereby evading Value Added Tax (VAT). The conduct is contrary to Regulation 28(2) of EFDs under VAT Act,” Kapoloma said.
Ng’ombe was sentenced to pay a fine of K1 million or 2 years imprisonment in default by the court and she has since paid the fine.
Kapoloma has further called on all consumers in the country to demand a fiscal receipt every time they make a purchase from VAT registered businesses.
“The Authority would like to emphasise that it is the duty of businesses to always comply with EFD regulations by using the EFD machines honestly and issue fiscal receipts to their customers,” said Kapoloma.
Failure to comply with EFD regulations attracts penalties and fines detailed below:
| Offence | Penalties and fines |
| Failure to use EFDs | A user of an EFD or any person required to use EFD, who fails to do so without approval, commits an offence and is liable to pay K500,000 or upon conviction a fine of K1 million or imprisonment for two years. |
| Fraudulent use of EFDs | Any person who, with intent to defraud, uses EFDs to mislead, deceive or manipulate information sent through a system or the Commissioner General, commits an offence and shall, in addition to payment of tax which is payable, be liable to pay twice the amount involved or K500,000, whichever amount is greater, or upon conviction to imprisonment of two years. |
| Tampering with EFDs and their software | Any person who, without authorization, tampers with or causes an EFD to perform improperly, commits an offence and shall be liable to pay K500,000 or upon conviction a fine of K1 million or imprisonment for two years. |
| Failure to comply with any obligation as a user or supplier | Any person who violates any obligation as a user or local supplier under these regulations shall be liable to a penalty imposed by the Commissioner General of K500,000 |
| Failure to demand a fiscal receipt | Any person who, after purchasing goods or services, fails to demand and retain a fiscal receipt or fails to report a refusal by a user to issue a fiscal receipt as required by these regulations, shall be liable to pay three times the tax payable. |
| Failure to keep a fiscal receipt |
A person who, after purchasing goods or services, fails to issue and retain a duplicate fiscal receipt or fiscal invoice or refuses to issue a fiscal receipt or invoice upon demand as required by these regulations, commits an offence and shall be liable to pay K500,000 or upon conviction a fine of K1 million or imprisonment for two years. |
| General offence | Any person who commits an offence under these regulations for which no specific penalty is provided, shall be liable to a minimum of K500,000 or upon conviction a fine of K1 million or imprisonment for two years. |
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