MRA In K38 Million Tip-Offs Informants Scandal

Fraud has hit the Malawi Revenue Authority’s Tip-Offs Anonymous Scheme with million of Kwacha reported to have been paid out to informants suspected to be MRA employees. In the financial year ending, MRA paid out about K38 millon to informants, half of which inside sources claim can not be accounted for.

The scheme which MRA runs in collaboration with an international audit firm Deloitte, is open to the general public to inform the tax collector of corporate tax evasion, fraud and corruption among other corporate ill-practices.

MRA publicist, Wilma Chalulu has confirmed they are investigating the scam, but could not commit to the actual figures under probe. However, the Authority has reported to be making progress in the implementation of the tax Block Management System (BMS) which was introduced about two years ago.

Speaking during lauch of the system in Mzuzu on Saturday, MRA Commissioner General, John Biziwiki said the system has been influential through which MRA has managed to collect K1.3 billion since it’s inception. “The Block Management System (BMS) is a taxpayer outreach scheme that physically identifies and maps taxpayers and breaks them down into manageable blocks to allow MRA to visit them in person, educate and encourage tax compliance”.

The Commissioner General added saying the implementation of BMS in Malawi’s tax administration is aimed at increasing taxpayers’ understanding of their tax rights and obligations while bringing other services like tax registration, payment of taxes and tax education closer. Meanwhile, Deputy Mayor for Mzuzu, Tony Mwenitete has urged the business community in the northern commercial capital centre to comply with tax payments.