Tax Commission enquiry into capital gains tax

The Tax Commission yesterday resumed sitting at the High Court premises in Banjul, and started looking into the issue of capital gains tax on land sales.

Abdou Wahaab Njie, a resident of Bakau New Town, South Atlantic and the husband of Mariama Njie, told the commission that he had two plots of land, one situated in Bakau New Town and the other at Kanifing.

He told the commission that he sold the land situated at Bakau New Town for D100,000 on 29 June 2007 to his wife, Mariama Nije, but did not know the dimensions of the plot of land.

He said he had paid capital gains tax of D7,500 and that the plot of land at Kanifing was sold for D50,000, and he had also paid capital gains tax for that.

Mr. Njie said he is still residing in the compound he sold to his wife.

At that juncture, state counsel applied for the witness to provide the commission with his documents, with the sketched plan of the property sold to his wife.

Muhammed Hydara of Kombo Poultry Farm also appeared, and told the commission that he lives in Kololi, and Kombo Poultry Farm belongs to his company.

He told the commission that the land was allocated to his company by the Gambia government in 1986, and it was leased.

The lease document for the land, and the company’s memorandum of association were tendered.

Mr. Hydara said he owns 95% of the shares in the company, and later bought the two plots of land, each for D100,000 and divided it into two for mortgage purposes.

“I paid capital gains tax after I sold it to one Mr. Dorbanka for D500, 000. We made an agreement that he will build 12 apartments for me, each costing D45, 000, but I provided the building materials,” Mr. Hydara further explained.

Payment receipts of the capital gains tax were tendered.

Jainaba Ndong also told the commission that she bought a property from one Babucarr Mbenga, which was situated in Banjul in

She added that she did not know the dimensions of the property, and did not know the year she bought the property.

The seller Babucarr Mbenga also explained that he lives at LatriKunda German, and the property sold to Jainaba Ndong was sold to him by one Mr. Manneh, a deceased.

He said he sold the land because people are migrating out of Banjul, as a result of the fear that the sea was encroaching into the city, that was why he sold the land for D120, 000.

Baba Cham, a resident of Kololi and a civil servant, told the commission that, in 2007, he sold a plot of land at Tanji layout, which was allocated to him by the Gambia government.

He tendered the lease document for the property, and recalled that he later sold the land for D100, 000, and had paid capital gains tax.

The assessments for his capital gains tax with a receipt were tendered. The dimensions of the land was 20 X 27, he said.

Sait Mboob, a resident of Brusubi Town and a businessman, said that in 2000 or 2001, he got land at Sukuta from one Buba Cham for D10, 000.

He got an alkalo’s transfer document, and later sold it to one Saikou Jammeh in 2007.

It was an empty plot of land, for D50, 000, and he told Saikou Jammeh to pay the capital gains tax and any other transactions which required money.

He tendered the evidence of payment of capital gains tax.

Sitting of the commission continues on Wednesday 21 March 2012.