Semlex, a
Belgian company that was closed down by The Gambia Revenue Authority (GRA) on
Monday reopened yesterday as the
company paid a staggering amount of D390, 000, The Point has been reliably
informed.
Semlex is the
company contracted by The Gambia government to issue national identity cards.
GRA on Monday closed down the company over tax evasion despite its claim of
“government’s tax exemption.” They cited that it contravenes section 215 of the
Income and Value Added Tax Act.
Our reporter
yesterday visited the company after it was reopened by GRA officials. A source
who is familiar with the matter and spoke to The Point on the condition of
anonymity says it is so ‘disheartening’ to know that the company was closed
“just for D390, 000 over tax issue.”
The Special
Investment Certificate (SIC), our source added, was supposed to be given to
Semlex Company by The Gambia Investment and Export Promotion Agency (GIEPA).
“The company
has paid D390, 000 and is following the SIC from GIEPA. In fact, part of the
contract is that the government supposed to provide everything including the
office complex. But I can tell you that even the Kanifing office complex which
is rented by the Ministry of Interior, Semlex has to pay D3, 000, 000 just to
start production.”
The
operational cost, our source further added, is supposed to be paid by
government. However, our source claimed that Semlex is paying at the moment.
On Monday, a
person familiar with the matter at Semlex, who wished to remain anonymous, told
The Point that part of its contract with government spells out that the company
is exempted from paying tax.
“Part of our
contract is that the government shall issue Semlex with a Special Investment
Certificate (SIC). The government shall not deduct any withholding tax at
source on the transfer out of the Republic of The Gambia of any income deriving
from the execution of the project,” the company claimed.
Our source
further added that the contract clause 7.4. indicates that “Semlex shall be
exempted from paying any custom duties for taxes on equipment, machinery
accessories, materials or supplies (including motor vehicles) imported
temporarily or permanently into the Republic of The Gambia for purposes related
to the design, building, maintenance and operation of the infrastructure and
the project.”
Meanwhile,
GRA Commissioner General Yankuba Darboe told journalists on Monday that that
they have consulted and engaged Semlex management many times to pay their taxes
but to no avail. “In fact they don’t even attempt to suggest for payment plan,”
he claimed, insisting that since GRA is mandated by government to collect
taxes, Semlex must pay their tax.
The GRA boss
dismissed claims that Semlex has a Special Investment Certificate (SIC) – a
certificate that exempts a company from paying tax.
