The Malawi Revenue Authority (MRA) has given out over K24 million to informants who reported suspected cases of tax evasion and tax fraud in the first six months of the 2017/18 financial year.
Between July and December, 2017, 115 patriotic citizens reported suspected cases of tax fraud and tax evasion, and one successful informant received a reward of over MK3 million.
Cases of tax fraud and tax evasion include suppression of VAT, non-remittance of PAYE, smuggling, conveyance, bribery and corruption, failure to register for tax, failure to remit tax, under-valuation of goods, under-declaration of goods and misclassification of goods.
MRA introduced Deloitte Tip-Offs Anonymous Service in 2010 and MRA Informant Scheme to enable members of the general public to report suspected cases of tax fraud, evasion, bribery, smuggling and dishonesty. The rewards range from a minimum of 10% of the taxes recovered to a maximum of K500, 000.
In the 2016/17 financial year, MRA gave out rewards amounting to over K45 million which was higher compared to 2015/16 financial year where MRA paid MK38 million. It is expected that the rewards for the 2017/18 financial year will surpass the K45 million given out in the last financial year.
The MRA informant Scheme is an in-house informant scheme where members of the public can report tax evasion cases to MRA or their nearest police station and the Authority will conduct confidential investigations.
With Deloitte Tip-Offs Anonymous Service, members of the general public are required to dial a toll free number 847 for Airtel, Access and TNM subscribers or 80000847 for MTL subscribers.
Informants can also send their tips to the Centre through email address: email@example.com or fax to 0182 229. They can also send their tips through the following postal address for free (no stamp required): The Call Centre, P.O Box 1726, Blantyre.
Informants should provide the date, time, location, the people involved or the amount of revenue involved to ensure that thorough follow-ups are made.
No personal details are required but a four or five digit code number of any choice like 2145 or 52212, for proper identification. Code numbers of successful tips are published on monthly basis in high circulation newspapers and the reward is given confidentially without the receiver and giver seeing one another.
By Wadza Otomani