TAA TO IMPROVE TAX ADMINISTRATION IN MALAWI

The Malawi Revenue Authority (MRA) says the introduction of the Tax Administration Act (TAA) and the Revenue Appeals Tribunal will play a key role in improving tax administration in Malawi. 

Lydia Sauti-Phiri, Deputy Director (Technical and Drafting), Legal Division, said this during regional sensitization meetings with tax consultants and clearing agents in Blantyre, Lilongwe and Mzuzu.

Speaking during the sensitization meetings, she emphasized that TAA and the complementary Revenue Appeals Tribunal Act represent a bold legal framework to reform tax administration in Malawi.

“The TAA seeks to harmonize the administration of various tax laws, ensure consistency in penalties and procedures, and streamline dispute resolution mechanisms. For example, it introduces advance rulings and clear timelines for administrative actions, which provide certainty and predictability in tax matters,” said Sauti-Phiri.

Sauti-Phiri further noted that the new legal framework addresses long-standing challenges, such as lack of uniformity in tax treatment and prolonged delays in resolving tax disputes.

“By establishing the Revenue Appeals Tribunal, we now have a specialized platform dedicated solely to tax matters, replacing the fragmented processes under the previous system,” she added.

Taking their turn, Samuel Mwale, Manager for Domestic Taxes, and Victor Msesa, Manager for Customs & Excise Division, outlined the strict regulatory expectations under the new regime.  

"Any individual wishing to operate as a tax practitioner must now be licensed by MRA. This includes those preparing tax returns, offering tax advice, or representing clients in tax matters. The aim is to professionalize tax practice and ensure accountability," said Mwale.

Msesa explained that the licensing process includes submission of academic credentials, tax clearance certificates and proof of experience.

“Practitioners are also expected to adhere to a strict code of conduct. Practitioners must exercise due diligence, maintain accurate records for at least six years and act with integrity in all their dealings with clients and the Authority," he said.

He said failure to comply with these requirements could result in suspension or cancellation of the practitioner’s license.

‘‘Additionally, offences such as assisting in tax evasion, submitting false declarations, or unauthorized use of a license carry heavy penalties, including fines and imprisonment,’’ Msesa warned.

BY WADZA OTOMANI