Mike Appel sues MRA for contempt

Motor vehicle franchise dealer Mike Appel & Gatto Limited, embroiled in a tax dispute with Malawi Revenue Authority (MRA), has filed a contempt of court charge against the public tax collector.

Mike Appel & Gatto, whose premises in Blantyre and Lilongwe remain sealed for eight days now, is accusing MRA and its officer, Stanford Khundi, of disobeying a court order not to execute the order that necessitated closure of the company’s showrooms in the two cities.

MRA on February 29 invaded Mike Appel & Gatto premises, took away some motor vehicles from the showroom before sealing the premises after the company allegedly failed to settle a K1.2 billion tax.

In an application filed at the Blantyre Magistrate’s Court and to be heard on March 14, the company is asking the court why Khundi should not be committed to prison or fined for disobeying the court order.

During the execution of the order by MRA, the company claims in an affidavit sworn by its managing director Nazeer Osman that Khundi, who was leading the MRA team, was shown the stay order not to proceed with their action.

Osman, whose company is being represented by private practice lawyer Frank Mbeta, stated in the affidavit that he informed the MRA team that there was a valid amended order of stay issued by the High Court, which he said was shown to them, but was ignored.

MRA sealed the premises and drove away the vehicles that were removed from the showroom.

Meanwhile, MRA filed an application asking the court to vacate the stay order Mike Appel & Gatto obtained to stop the execution of its action, but the court declined, ordering MRA to make an interpartes application.

The company is also accusing MRA of violating Section 6 (2) of the Taxation Act which calls upon all MRA officials to observe the oath of secrecy which prohibits disclosure of taxpayers’ affairs to third parties. n