Malawi Revenue Authority (MRA) yesterday reopened premises of motor vehicle franchise dealer Mike Appel & Gatto Limited in Blantyre and Lilongwe, 18 days after sealing them over a tax dispute.
Private practice lawyer Frank Mbeta, who is representing Mike Appel & Gatto, confirmed in an interview that MRA reopened the company for business, but could not immediately detail what the two sides agreed.
In the dispute, MRA is claiming K1.2 billion from Mike Appel & Gatto and sealed their premises on February 29, forcing the company, which maintained it was not in the wrong, to sue the public tax collector for contempt of court.
The company claimed MRA did not respect two court orders that stopped it from proceeding with the action to shut down the company.
Mike Appel & Gatto said it paid K88 million to MRA, after consultations with a tax expert, Elias Kaluluma.
During the shut down, MRA officers, accompanied by armed police officers, drove away motor vehicles from showrooms before sealing the premises.
MRA did not respond to a questionnaire sent to them when The Nation wanted to know the agreements entered.
However, a source familiar with the transaction said MRA had asked Mike Appel & Gatto to withdraw its contempt of court case.