The State v Malawi Revenue Authority ex-parte Mike Appel and Gatto Limited

Abstract

The case concerns an application for judicial review arising from a tax dispute between the applicants, Mike Appel and Gatto Limited, and the Malawi Revenue Authority (MRA). Following tax investigations, the MRA assessed the applicants for substantial tax liabilities and issued a Notice of Intent to Distrain for immediate recovery. The applicants challenged the decision, arguing that the assessments were excessive, based on estimates, ignored applicable tax credits, and were enforced before objections and appeals were determined, thereby acting unreasonably and unfairly. The MRA applied to have leave to commence judicial review vacated on the ground that the applicants had failed to exhaust the statutory tax appeal remedies provided under the Taxation Act and the Value Added Tax Act. The High Court examined the scope of judicial review in tax matters, the availability and adequacy of alternative statutory remedies, and whether the applicants had an arguable case. The Court held that the tax legislation provides clear appeal mechanisms, including appeals to the Commissioner General and further to the Resident Magistrate Court, with provisions for waiver of payment. Consequently, the matter was primarily a tax dispute for which statutory remedies should be pursued rather than judicial review, and the Court emphasised that judicial review should not be used to circumvent established tax appeal procedures.