More enquiries into capital gains tax, as Tax Commission continues sitting

The Tax Commission yesterday continued sitting at the High Court premises in Banjul, with the continuation of enquiry into the capital gains tax.

Buchannan Joye told the commission that she bought two plots of land in 2007 at Tranquil village, for D1.8 million, and the dimensions of the plots were 40 X 20 and 35 X 20.

She then provided the commission with the transfer documents and copies of receipts for payment of capital gains tax, as well as a notice of assessment stating that at the time of buying the said lands there was no structural development.

The seller, Ebrima Kebbeh, a resident of Tranquil village, told the commission that he acquired the plots of land in question from the late Yunusa Sanno, former alkalo of Brufut village, in 1988.

He added that he had lease documents to that effect since 1990, further stating that he had other relevant documents concerning the said plots of land, but they were not with him at the commission.

“I have receipts of payment of tax with me here,” he told the commission, adding that he sold the said plots of land for D1.8 million, and paid D688,000 including the penalty as capital gains tax to the GRA.

Mr. Kebbeh added that when he was called by the GRA, he was informed that he should pay capital gains tax of D10, 000 every month.

The witness said the GRA gave him a receipt for the payment.

“I was later called by the GRA only to be informed that I had not paid the required fees for the lands that I sold in 2007,” adding that he paid the capital gains tax in 2007, but could not remember the actual amount he paid.

He said he earlier told the GRA that he had sold the land for D80, 000, but when he was later called, he confessed to them that he sold the land for D1.8 million.

He further revealed that he had a problem with his bank and, as a result, was called to the police fraud squad in Banjul, where the police asked him for the deed of assignment.

He added that since they did not know the actual amount that he should pay to GRA, they referred him to GRA where he paid the capital gains tax of 2007.

Still testifying, Mr. Kebbeh said at the time of selling the said plots of land, he had a liability with his bank and they were trying to trace him to settle the loan.

He informed the commission that he could not know the person who assessed him at GRA, but one Mr. Sarr would be in a position to know the person who assessed him in 2010.

“I went to GRA for re-assessment, where I agreed that I should pay the amount of D688, 000,” he said, adding that he did not pay the capital gains tax in full, as obligated.

He said he was asked by the GRA for the mode of payment of his capital gains tax, and he told them he could pay D10,000 every month.

He added that he did not know the outstanding balance of the liability, and he did not have any payment plan with the GRA.

“I cannot produce any document to show that I should pay D10, 000 every month to GRA,” he stated, adding that he paid what he had, but the amount due was D300, 000.

He said they told him the penalty was D10, 000, and he was asked to pay the capital gains tax in January 2012.

The witness further explained that on 2 March 2012, he went to GRA to pay D20, 000, but he could not pay because his file could not be traced after a thorough search.

“On 4th March 2012, I went to GRA again to pay D40, 000, but my file cannot still be traced. I then requested to make some payment so that I can be given a receipt, and they told me that I cannot since my file was not seen,” Mr. Kebbeh concluded.

The commission continues sitting on Friday.