(JollofNews) – The Gambia’s Ministry of Information and Communication Infrastructure has expressed regrets at the closure of the country’s first daily newspaper, the Daily Observer.
It said it will work towards an amicable resolution of the impasse to enable the Daily Observer to resume operations as soon as possible.
The newspaper was Wednesday afternoon ordered to temporarily cease operation by officers of the Gambia Revenue Authority (GRA) due to its non-compliance with its tax obligations.
The Ministry of Information reiterated that the closure has nothing to do with the paper’s editorial policy, but it is as a result of the its failure to pay over D17 million tax arrears that it is owing to the GRA despite several reminders.
“The Ministry has been reliably informed that in the past, the GRA had reached an agreement for a payment plan but the Observer Company had failed to honour its own part of the agreement,” said Aisha Davies Ann, director of Information Services.
“Therefore, the GRA was relying on the powers conferred on it by Section 215 of the Income and Value-Added Tax Act 2012 which gives it the authority to temporarily close down any persist defaulter.”
The ministry said GRA has expressed hope that the temporary closure would open a window of opportunity to renegotiate a way forward with the Observer Company with a view to settling the outstanding arrears.
On the face of it>> to say the least. The nonpayment of tax would appear to be from 2004 onwards. That is 17 years ago, suggesting a tax deficit of around 1 million dalasis per annum. One also must highlight the difference between a business having a “proprietor” and a business having Board of Directors with a Chairman or a CEO and shareholders. The two are not compatible.” The Observer Company” suggests the latter.
Ownership of The Company can be established via the Business Registration Authority which must list its shareholders and the allocation of shares. I think to confirm ownership would allow a solution to be found. It would also be useful to see the repayment schedules offered by the GRA and to whom they were addressed or to whom they were negotiated with.
Opinion.
The Observer Company is a limited liability company. It can sue and be sued. It can enter into a contract on its own without the shareholders. Therefore, it is less important to establish who the shareholders are. Being a legal entity, even if the shareholders are known to everybody, GRA have no claim on them. The tax liabilities are incurred by the Observer Company. The company cannot be more important than all the other taxpayers in the country who are subjected to the same tax laws. We have heard of other businesses, such as tailors, complaining of being closed down for non payment of taxes and yet the media doesn’t give a dime. Does this mean that some taxpayers are more important, or are more ‘taxpayers’ than others. Why should the smallest, voiceless and poorest taxpayers be made to pay for their taxes and yet the biggest, noiciest and richest are let go free? Will the justice be? Where will the patriotism be? Where will the moral high ground to preach and inform the public about what is right and wrong be?
A bearer of a burden shall not bear the burden of the other. However, the Yerro Jallows, the Madi Jobartehs, the GPUs and all those truth-blind ‘freedom of the press’ noisy makers can come up with a handsome D17 million to the GRA gate at 78/79 Liberation Avenue. Before they reaches the CG’s office, i can guarantee that the Observer Company does will be liberated.
Should read; On the face of it, this is reassuring from the Office of Information to say the least. Typo error :
The person appointing and firing MDs of the paper must be the owner. Let us also look at the appointment letters of all those MDs and see who signed them.
Mr Bojang; If it were that simple, we would know who owned the Company; Going by the informed commentaries online, I would suggest appointment letters may have been signed something like >> on behalf of the Management>> and signed or PP’ d
By the Company Secretary or office secretary. There would appear to be a pattern developing as you so rightly pointed out earlier. The GRA should be able to shed some light on ownership of all these companies. But I think we also need to know why tax arrears were allowed to accrue>over such a long period of time. My only experience of the GRA was back in 2002>> whereby I can only say they were entirely correct and above board. This was in connection to paying the expatriation quota Tax of 3 000 dalasis and business registration fees.
I am not aware of any tailors who were firebombed, tortured, murdered or disappeared. But yes; all should be availed of a hearing or a tribunal to plead their case. President Barrow has assured Justice for all>> One Standard.
The law has not given GRA the mandate to firebomb. So Mike, Yerro, Tailor etc can be rest assured that if the taxes over due are not settled or committed to be settled, they can be garnished, closed, taken to court etc, but never firebombed or physically attacked.
Quite /isn’t that refreshing my friend .
Closing Medias ?? There is no mistake but the pure threat to the critical voices trying to silence them, if someone one does not pay his taxes what to do is denounce and block his current account, but never act as has acted the government, is another dictatorship ? May Fati
Peace, There are more than one way to enforce compliance. The Information Minister and GPU president can read out Section 215 of the Income and Value Added Tax Act 2012 for free.
I, Justice, am always needed before you, Peace. If i am absent, you cannot last for a minute.
Justice in the context it is being discussed here, is relative not absolute. Though your summation sounds clever, the premise is far less so. My “Thoughts” tell me that Justice and Peace are Twins and Offspring of the same Parent with many other Siblings. The two are the First born and raised to Protect the rest of the Siblings. Without one, the other Suffers. No Justice, No Peace. No Peace, No Justice. Peace to Justice and the Siblings. Wait a minute, is it the reverse. I hope the Point is made.
Tax Justice Network makes the valid point that the law is there to be applied evenly to all irrespective of status. Accordingly, if the law could be enforced in relation to the “small man”, it must equally be applied to the “big man”. The hullabaloo surrounding the closure of the Observer Newspaper appears to be misdirected. The Paper has not been closed down for any political reason or because it trampled on somebody’s toes or because somebody dislikes the Paper; it has been closed down for a perfectly legal reason: non-compliance with its legal obligation to settle its tax liabilities. Why then, Tax Justice Network rightly queries, do we have all and sundry batting for the Daily Observer as if the Paper has been wronged by the State. We must be careful that, in trying to demonstrate the value and importance of media houses in our country, we do not create the impression that they can act against the law with impunity and get away with it. The statement by the Ministry of Information is unfortunate and it simply needs to get out of the fray if it is unable to speak truth of the law, otherwise the impression being created is that it is brining undue influence on the GRA to reverse its decision. We need strong institutions to build a viable democracy. When Parliament enacts laws and places the responsibility of the enforcement of those laws on a public functionary, we should allow the public functionary to function effectively without interfering in their enforcement of the law. When we give important powers with one hand and take them away with another we will be perpetuating a stagnant society where development is spoken about but not executed. We need to do better without fear or favour!!!
Totally agree with you Mr Ceesay. Some of the journalist are getting too emotional maybe because many learned their trade at the observer and got friends still working there, that does not give them the right to distort the story. The whole issue has been blown out of proportion.This is all about Tax evasion which is a serious crime, the GRA has done all they can to recover what is owed but to no avail. If petty traders such as our hardworking women who grow and sell their vegetables are made to cough up, how can anyone justify a multi million Dalasi newspaper geting
away with not paying the tax man? I think the statement by the information minister is unfortunate because no individual or organisation should be above the law and if we want to move forward as a nation we must all respect and uphold the rule of law. Some of the commentators were blaming the government as if it was the government who sent the police to close it down, unbelievable. SMH
Why are my “Thoughts” and I having the old Feeling like, a Middle of the Back Itch you want to Itch but can’t reach. Your Sensibilities take over and you decide to ask someone to scratch it for you. Sort of like employing the Mantra, “You Scratch my Back, I Scratch your Back”. Oops, the wrong connotation not intended seems to get in my Thought Process. I meant suggest or recommend Arbitration or Mediation by a Fourth Party not Close to the Matter who is Trusted by both GRA, The Observer News Paper or the Question Mark Owner (s). Good faith Negotiations and a Commitment to Scratch…. I mean reach a Negotiated Agreement or Solution to the Matter. Remember, “the more things change, the more they remain the same”. Other Media then, The Observer News Now. Did we dance to this Song before? No answer Solicited. The “National Back” Needs Scratching. Can Some of the Interlocutors Temper their Passions to get the Job or Task done without Bleeding the “National Back”? My itching Thought, Stop itching especially, Not at the “Back” I Can’t See. You get the message?
Impoverished women paying tax ??? surely not; If so The Gambia needs a fairer tax system. Increase the tax threshold for the lower earners and increase tax from those who can afford it. I am sure Mr Sallah could devise a fairer tax system.
Sorry Mike, that is happening every where in this world. You can call it heartlessness. But the fact of the matter is income tax is based on income earned, property tax is based on the value of the property, capital gains tax is based on the gains etc. Depending on the laws, there could be thresholds and the rate applicable could be progressive or regressive. in any case, don’t ever forget that the word “impoverished” is a relative term An impoverished woman in one corner of the world (or even within the same country) could be the richest in an other.
Think of the Billions we could save if we didn#t have to carry that “Other Burden” called Government >
Then again, think who who will provide the public good/service. The businessman would have charged more for security, education, health etc and they would have been less sympathetic to those who would not pay. I will therefor go with this corporate body called govt, where all citizens have equal number shares and the same voting rights……..and obligation proportionate to their incomes/wealth.
That must be new for African’s Tell me more>> I don’t see any social pyramids,, only The Arch 22 and the burden of Debt accompanied by who owns what ? Read Madi for the cost of Presidential Office>>>The Private sector would only pay dividends on results not status.. Hon Halifa would bring that level playing field and end that priviledge>> am sure.
The bondage of the taxpayer to open ended loans, debts and international begging;
Lets all be President=== lol>>> Now that would be total democracy. >>>
I’m Sparticus>>>>No I’m Sparticus. I think your transitional period will last forever.
So sorry about that.
Jammeh government pointed Jolla’s or mixed up? What about Barrow’s government pointing mandikas ? Cleaning up all Jollas like CDs igp etc etc