Malawi Revenue Authority cracks tax evasion scam in commercial property market

Well-knitted and massive tax evasion acts involving almost all players in the commercial property market have been discovered and rooting out is now ongoing by the Malawi Revenue Authority (MRA).

MRA Commissioner General Tom Malata: Tax evasion is a crime and it does not matter who you are

At a news conference at Msonkho House in Blantyre, MRA Commissioner General Tom Malata says the development has come to light after enforcement operations conducted by the tax-bull indicated under-declaration and in some cases non-declaration of income by estate agents, managers and commercial property owners.

“Malawi Revenue Authority recently conducted enforcement operations in Blantyre and Lilongwe. These activities have led to seizures of many documents from commercial property owners, estate agents and managers on suspected tax evasion crimes. The seized documents are both in hard and soft copies. Taxes that are deemed to have been evaded are Income tax, Value Added Tax (VAT) and Withholding Tax (WHT),” Malata says.

He says it is required by law that everyone in the country should declare all their income earnings to MRA for taxation purposes.

The tax revenues that Malawi Revenue Authority collects enables the Government to implement various development projects such as construction of schools, health facilities, roads and bridges and others.

Malata says taxes empower the Government to provide social services like medicine in public hospitals and clinics, learning and teaching materials in schools, subsidised farm inputs to farmers or salaries for civil servants such as teachers, doctors, nurses, the army, the police and the judiciary.

Each act of tax evasion deprives Malawians of these development programmes and social services.

“Tax evasion is a crime. It does not matter who you are or wherever you are, the long arm of the law will get anyone involved in tax evasion. Our appeal as MRA is that all commercial property owners and estate agents should voluntarily come to the Authority, declare their income and pay the correct amounts of their due taxes,” he said.

The commissioner general said MRA has since formed teams that are analysing the seized data and the public will be accordingly updated regarding the magnitude in terms of amounts suspected to have been evaded.

Malata has since encouraged members of the general public not to hesitate but swiftly give MRA details on tax evasion activities.

“Anyone who has such information should use MRA’s Informant Scheme, available in all stations across the country and the Tip-offs Anonymous Service through toll free line number 847. I can assure you, tips that lead to recovery of taxes are handsomely rewarded,” he said.

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1 year ago

To tell you the truth Bwana Commissioner General I try as much as possible to honour my tax ligations timely but I am always put off when I see your efforts being targeted at small fish, leaving the culprits sckot free. When I visited QECH recently, I was saddened to learn that we are going to waste taxpayers money building private stadia when BT does not have a District Hospital to ease the congestion at the hospital. Malawians are more than willing to pay taxes if only for the benefit of citizenry. Definitely not for long queues of presidential convoys… Read more »

1 year ago

It’s commendable Mr. Malata to collect more taxes for the ever increasing demand and for the sake of developing our poor nation! But most of this taxes got not paid and /or get wastet exactly from the same people , you should target your effort to! It is the ruleing elite and their allies, the super rich Asien community! Unfortunately appart from big corruption in your institutions you will have not the guts to go for the big fish! Somehow understandable, nobody chops the hands he receives his food! Mr Malata be honest, this why you go for the smaller… Read more »

1 year ago

The law stands so strong on collection of revenue but when it comes to utilisation of the revenue it becomes biteless….

1 year ago

The problem is that in Malawi the tax collected is used for personal benefit and extravagantly by DPP for its survival. Make good use of taxes so that we become tax compliant citizens

1 year ago

tax invasion people stopped reporting these because the have prove to be useless -Abdul Karim batatawala is the example of the tax invasion where it was proved beyond doubt that indded Abdul Batatawawa has to pay Malawi Govern 17 Billion kwacha but where is the case 7 years down the line nothing has happened but he is busy building around in town shop complexes and today you are saying WE SHOULD BE REPORTING tax invasion unsless this Batatawala issue is solve we will be reporting many of them. If Junior manager @ MRA wants to help the are being moved… Read more »

Charlie Hebdo
Charlie Hebdo
1 year ago
Reply to  bingu

I believe you mean tax evasion. You have a point though.

1 year ago
Reply to  Charlie Hebdo


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