Mike Appel and Gatto accuses MRA of doctoring tax figures
Mike Appel and Gatto Limited has accused the Malawi Revenue Authority (MRA) of doctoring the amount of taxes the company is being accused of not remitting to government.
On Monday MRA sealed the company’s offices in Blantyre and Lilongwe and seized a number of cars in its showroom for failing to remit taxes amounting to K1,236,036,927.20.
However, the company through its tax-consultant, is disputing the published figures, and has since described the move by MRA to seal off its offices as unprofessional and a breach of its code of conduct.
Mike Appel and Gatto Limited’s hired tax-consultant, Emmanuel Kaluluma told the local media the figures which the tax-collector has been publishing were not true reflection of how much the company owes government.
He did not disclose how much the company owes government in unpaid taxes.
“An agreed position is that we all have to pay taxes because they help develop our nation. But the law is very categorically correct that the tax-payer has to pay right amount. K1.2 billion is a lot of money,” argued Kaluluma who is managing director for EK Tax Consultant.
Kaluluma said his client won’t be pressured to pay ‘wrong amount of taxes’, arguing they decided to seek court redress on the issue after MRA failed to correct the disputed figures.
He accused MRA of disobeying court order after it managed to evade a High Court order Mike Appel and Gatto Limited through lawyer Frank Mbeta had obtained, stopping the tax-collector from effecting its Distrait Order.
The court order was obtained soon after MRA had already closed down the company’s offices and seized several vehicles from its showroom in Blantyre.
MRA Deputy Director for Corporate Affairs, Steven Kapoloma said if the company was free to take up its grievances with the court of law.
Kapoloma said MRA’s actions were 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 endeavor to bring to book all non- compliant taxpayers.”
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).
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 :
Are these dues indirect way of financing business houses? If dues are relating to 2011 when exchange rate was 150, assuming 1 million payable. then equivalent usd amount due was $6,666.00. When you pay this today MRA is getting equivalent to $1,333. at 750 exchange rate. Forex gain for payer is $5,333 per million. Multiply by how many millions indirect gain to a defaulted payer.
Kapoloma mukadali mu MRA? mukuwoneka ngati MRA ndi ya Family.Yesani kukambirana business yavutandani angagule mgalimoto awo.Makapani akuthawani.
Kkkkkkkll miyikolo apello & gattooo, muyisovenge mwaba mokwana agalu inuuuuu, la fourty lakwana.
See who always publish lies here Malawi Government! And some jealous Malawians!! U ppl can’t fucking take it whn u see a rich indian, Arab or Pakistani. U want to arrest someone arrest ur previous presidents and government. If today some Indians or Chinese are not paying taxes and not being legal. Blame ur government and presidents because of ur unequality laws Asians are compelled to not paying taxes etc. when an indian try’s to do something legal this government does not respond and use other means to take money. Same for police officers. When the indian gets caught in… Read more »
You don’t like it? leave. Malawi is not India, Arabia or Pakistan.
Ask yourself, “Why are you here?”
The answer is to make a living, so you are going to be honest? Who are you kidding?
You are boasting on being rich, where did you get that wealth?
You start being rude to the indigenous, they will one day get fed up of you.
S786 get one thing crystal clear, you are not indigenous to this country. It is not yours!! You relocated here from your country because of goodness knows what reasons to come and try your luck at making a fortune. Fine, that is your human right. Do not then start insulting, cheating and abusing your hosts as if this is now your land because you have resided here for a long period of time.Dont get too comfortable and start taking Malawians for fools because we tolerate your presence among us. WE MIGHT GET FED UP WITH YOU AND CHASE YOU OUT!!… Read more »
Pay tax first and dispute later.
Even if you can hire a lawyer,there is nothing he can do to spare you from paying. He might negotiate payment terms or a small reduction but you will still pay.
Pay what you owe and you will be off the hook.
Alipire basi asalire lero ayi. Ifenso amatipana choncho bolanso inu zachita kuswana koma ife amafuna pompo pompo kulipira iyaaa. Lirani koma mulipila basi.
So there’s. Some truth behind this. Kuchikhokhora amati matuvi ndi anga koma mikodzo iyayi. Achewa amati mbwelera. Angoni amati uchidzete.v atumbuka amati chindere chakufikapo. Za asena ndisakambe. Munaba misonkho koma pastime yochuluka choncho? Palinso chifukwa chopangira mulandu a pa. Avomera kale. While the responsible people are serving determine the actual figures. Pali nkhani a pa? Tichite kudikira ngati cashgate? Oweruza inu timakuonani pa. Fb nd I nyasa.
Thats what a failed state does always. MRA is doing gud so that someone could have mapwevupwevu at the State House on the other hand killing the workers of the mentioned parastor. These taxes are punitive especially this fringment benefit tax. I dont see companies surving in Malawi, with this try and error economy
Fakeni! We need to arrest these fucken injuns!