Malawi Revenue Authority seals Mike Appeal and Gatto offices: Updated
The Malawi Revenue Authority (MRA) has sealed the offices of Mike Appel and Gatto Limited in Blantyre and Lilongwe. The car dealer owes government over K1.2 billion in unpaid taxes.
MRA has also seized a number of cars in the showroom.
“We have sealed the offices of Mike Appel and Gatto Limited in Blantyre and Lilongwe. The car dealer owes Malawians over K1.2 billion in unpaid taxes. We have also seized a number of cars in the showroom” announced MRA on its Facebook page.
A summary that MRA issued, shows that Mike Appeal and Gatto had evaded paying K495 million which made the company to accumulate over K741 million in penalty and interests. 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 captured in the table below.
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, all totalling to K1,236,036,927.20.
MRA Deputy Director for Corporate Affairs, Steven Kapoloma said distrait order is in line with Section 107 (3) of the Taxation Act and Section 40 (2) of the Value Added Tax (VAT) Act.
“The outstanding taxes comprise VAT at K232.6 million, Corporate Tax at K231.5 million, Customs Duty K5.6 million, Pay As You Earn (PAYE) at K3.8 million and other business taxes. This action comes about after all other efforts to have the outstanding taxes paid were duly exhausted.
“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,” said Kapoloma.
Meanwhile, the Authority has said the Relationship Management (CRM) programme they rolled off in the Large Taxpayers Office (LTO) has proved to be effective as far as improving service delivery is concerned.
CRM seeks to increase voluntary compliance by making it easier for large taxpayers to comply by providing them with information and assistance.
The CRM programme in LTO involves assigning specific desk officers to a particular taxpayer to provide advisory services to enhance tax compliance and ensure that all services required by the taxpayer are speedily attended to.
These services include processing Tax Clearance Certificates (TCCs), Withholding Tax Exemption Certificates (WTECs) and attending to all enquiries by the taxpayer. Desk officers also periodically remind taxpayers on tax due dates and return submissions.
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.Follow and Subscribe Nyasa TV :
Ine ndiye zisandikhudze.
Za Kaesara kwa Kaesara basi. Ife tikuvutika kupereka PAYE ndi VAT koma ena ndukumathawa? Bolani akanati azipereka PAYE yokha zikanakhalako bwino pang’ono.
hahahaha L.L.O (LAUGHING LOUDER OUT) to our country nw our rate is too low. Think Malawian frm R1 to K40 nw is R47 at bank what about black market so,,,,,, are u making good Malawi?
Ma comments ali apa ambiri akufuna amvetse kut hw that amount could be accumulated? I think ndikusadziwa to ask that question. Mutati muone pa ma calculations a MRA pali Principal amt komanso penalty/interest. This means that the company has been paying taxes koma yochepa. They were suppressing sales all along. apa agwidwa and MRA has calculted the exact amount of msonkho including penalities chifukwa amapanaga zolakwika. Its not only for a year akhala akupanga zimenezi ndi kwa nthawi ndinthu. Nde paja amat za kaesara perekani kwa kaesara zonsezo zambuyo akhala akuba akuyenera kupereka. Munthu opereka nsonkho amapanga ma calculations ekha… Read more »
This is just a tip of the iceberg.MRA and other departments are not doing their job properly.The economy is not growing bcoz we are too relaxed and certain pockets of society are taking full advantage.Dont just point fingers at government all the time when some of these problems are clearly our own fault. How can a company be allowed to accumulate K1.2b in taxes?How many more people are doing this and getting away with it?Where is our forex?Why are companies this big and this rich not exposed to mandatory listing on the Malawi Stock Exchange when they are clearly in… Read more »
This is the same guy who presented a hummer to the late president. He will soon get away as miscalculation. All this Asians are criminals who have looted our mother Malawi. Check on this guy who owns apex next to unilever he calls us black people monkeys and is involved in heavy money laundering.
MRA is sleeping. There is an Indian who can run and feed Malawi for even one year. Hos name is Mayul and his number is 0995 967 150 he bought 75,000 tons of maize at K70,000 per ton and he is selling at K280,000. Someone donsome sums and calculate tax at 30%. Just do K280,000 minus K70,000 x 75,000 tons x 30%. Am geting Error my calculator is too small to contain the taxable amount. There is another one uyo ndiye has 50% of the forex that MALAWI as a government has. He runs Chambo Fisheries pongobisalila. MRA tulo kulimbana… Read more »
What about Lido he has to pay
Mk 450 billion he is the biggest crook he has properties worth more then the amount owed arrest him Malawians are suffering and he is enjoying with TWO wives
You need to investigate within MRA. Pali wina amene amawalimbitsa mtima…those guys must have paid a love of money over the past years. Somebody who told them not worry because he was in control. Somebody must have cashed in a lot of money there! Please chonde fufuzani bwino bwino ma bukhuwo!