GSM companies at Tax Commission again

Yesterday was again the turn of the directors of the various telecommunications companies in the country to appear before the Tax Commission sitting at the high court premises in Banjul.

They came in response to summons served on them to furnish the commission with some details patterning to their companies.

Established in November 2011 by President Yahya Jammeh, the commission of inquiry looks into tax evasion and other corrupt practices of accountants, legal practitioners, companies, and private persons, medical practitioners and institutions required to pay tax to the Gambia Revenue Authority.

The commission was also mandated, among other things, to ascertain the extent of loss of public revenue resulting from non-payment of capital gains tax, personal income tax and sales tax; and to determine the role of individuals, groups and professional bodies in the evasion and avoidance of tax.

It will also enquire into professional malpractice by members of the public as it relates to obtaining goods through widespread issuance of false and dud cheques and other malpractices by members of professional bodies as these have affected foreign direct investment in The Gambia.

Gamcel

Abdoulie Bah, head of the finance department at Gamcel, tendered the company’s annual accounts from 2006 to 2011.

Africel

The Managing Director of Africel, Badara Mbye, was also at the commission, where he tendered the company’s annual reports from 2006 to 2011.

Mr. Mbye explained that from 2006 to 2011, they were paying to the ministry of Information and Communication Infrastructure, before tendering evidence of payment of the license fee.

“In 2005, the license fee was 1 million dollars, but it was changed to dalasi at the Central Bank,” he said, adding that they do have a delay in their payments.

Comium

The Managing Director of Comium, Amer Hewei, who tendered the financial statement of the company, explained that according to their accounts they are up to date with the GRA.

GRA Officials

Essa Jallow, director of Technical Services at GRA, who was also summoned to provide the commission with the loss of revenue on the duty waivers from 2008 to 2011, stated that in 2009, the total loss on duty waivers was D614.5 million,in 2010 was D482.3 million and in 2011 it was D742.9 million.

The witness told the commission that his terms of reference include to supervise the work done by the three units under him, and they are policy planning, the legal unit and tax payers’ service unit.

He added that these units are also to provide technical support to the management, and to prepare the annual activity reports.

Mr. Jallow adduced that they also do revenue estimation and revenue forecasts for the authority, adding that every month he prepares a report if there are reasons to believe that the revenue was declining.

He said the authority surpasses its target by 3%, and that in 2010, the authority collected 91% of its revenue and, in 2011, it collected 94% of its revenue.

However, he added that the report submitted to the commission did not capture the arrears.

Demba Bah from the audit department of GRA, who tendered copies of the audited returned cheques from 2010 to 2011, also told the commission that he was employed at GRA in 2009, as an internal auditor.

The deputy commissioner of tax operations at GRA, Mamour Joof, also appeared and provided the commission with the list of tax payers, list of audited reports for 2010 and 2011, the list of all post-dated cheques received in 2010 and 2011, and those who made payments in arrears and their liabilities, which were all tendered.

He added that the head of the unit assessed the capital gains tax, and that no specific training was conducted on the capital gains tax.

Louis Gillen, deputy commissioner of large tax unit at the GRA, also provided the commission with the copies of the annual report on Comium, all audited reports of the large tax unit for 2011 and the list of approved payment plans on tax of more than 1 million dalasi.

He revealed to the commission that the audits on Gambega and Comium were not completed, adding that going by the approved plan for the domestic tax of the large tax payers unit, the audited draft showed that Comium owes more than D7 million.

He also told the commission that they are guided by a document prepared by the lands office.