Major hoteliers in the country Thursday appeared before the Tax Commission chaired by Justice Mama Fatima Singhateh to give account of their financial obligation from 1999 to 2011.

African Village Hotel
Francis Njie, the general manager of African Village told the Commission that the said hotel was registered in 1997. He produced a copy of the certificate of incorporation bearing the name ‘European Properties Gambia Limited’. When asked by State Counsel Binga D why the said certificate is bearing the said name, Njie replied that African Village Hotel is trading under European Properties Gambia Limited, adding that African Village Hotel was the only entity trading under the said name. Meanwhile the said copy of certificate of incorporation, memorandum and article of association were tendered and admitted as AVH. Copies of evidence of payment of corporate tax from 1999 to 2007 were also tendered and admitted as AVH2.

When asked why the said hotel had failed to settle its corporate tax liabilities for the period 2010 and 2011, Njie explained that they were making arrangements to do so. When asked for copies of audited account of the company, Njie told the Commission that he does not  have them in his possession. He however produced some copies of sales tax receipts from 1999 to April 2009 and they were tendered and admitted as exhibits. Njie also explained that the hotel suffered financial recession as a result of the tour operators’ inconsistent and prompt payment of their dues. He revealed that negotiation is currently underway between the said hotel and GRA to settle the sales tax arrears by installment.

When asked by Justice Singhateh who he saw at the GRA, Njie revealed that he had spoken to one Mr Gillen who asked him to write to the Commission of Income Tax. He pointed out that the number of staff that have been working with the hotel has varied over the years, adding that at times the number of staff drops from 70 to 40, especially during the low season. Meanwhile, copies of African Village Hotel receipts of payment for payee tax from 1999 to 2010 was admitted as AVH4.

Commissioner Momodou Sabally put it to him that the hotel was under obligation to pay sales tax, and further asked whether the company was operating at a loss or not, since they were rendering services. Njie however blamed the poor financial performance of the hotel on tour operators, whom he said hardly settle their dues on time.

Badala Park Hotel
Lai Mboge, the proprietor and managing director of Badala Park  Hotel told the Commission that the said hotel was registered in 1994. He produced a certificate of incorporation and the memorandum and article of association, which was tendered and admitted as BPH1. Lai Mboge disclosed that Badala Park Hotel provides accommodation, food and beverages. He explained that he started the said hotel by building 20 rooms from his pocket and had some staff most of whom didn’t fall within the payroll bracket, except four.

Mboge further explained that he has been paying his taxes since the inception of the hotel, pointing out that the government accorded him development incentives exempting him from paying corporate and sales tax from 1995 to 2000. He said that the receipts he has overlapped the years he was given development incentives by the government. He disclosed that since he received the Commission’s summons, he searched his archives but was able to get some receipts, adding that his accountant had travelled to the United States few years ago. Mboge further disclosed that he had personally contacted the GRA but his file was not traced.

At this junction, Justice Singhateh revealed that from all indications, the Commission assumes that he has not been paying his taxes regularly, adding that it appears that Mboge has also issued so many dishonoured cheques. Mboge in his response, asserted that he didn’t deliberately issue cheques that were dishonoured, but he issued the cheques with the assurance that the tour operators would have remitted or paid their dues when he issued the cheques. He however blamed the tour operators, adding that they are in the habit of delaying payments. He said the hotel doesn’t have audited accounts, because it operates only four to five months.

When asked by Commissioner Sabally how he guaged the hotel’s financial status, Mboge replied that the financial status is up and down. He recalled that the travel ban imposed by the British government in the early period of the APRC regime affected the market at the time, adding that the hotel payment was based on assessment by the GRA. Meanwhile corporate tax receipts of payment for the period, 2003 to 2005, 2006, 2009 and 2011, copies of payee tax receipts for 2002, 2003, 2006 and 2011, together with copies of receipts of sales tax from 1999 to 2003 were admitted as exhibits.

The Commission chairperson, Justice Mama Fatima Singhateh however ordered that Mboge furnish the Commission  with the following documents; evidence of monthly sales tax returns and assessment, corporate tax returns and assessment, deduction of payee tax from 1999 to 2011 and evidence of waiver or the exemption letter for the year under review on or before the 6th February, 2012.

Bijilo Beach Hotel
Ebrima Bojang, the managing director of the said hotel told the Commission that the hotel was registered in 2000 and started operation in 2001. Copies of the certificate of business registration and renewal from 2003 were tendered and admitted as BBH1.

Bojang who brought bundle of files containing receipts of payment of corporate, sales tax and payee tax jumbled up, was asked to step down and make proper arrangement before appearing before the Commission and he left. Bojang returned after one hour and half with his files properly arranged and the corporate tax sales tax receipts and payee tax receipts together with the certificate of incorporation, which were tendered and admitted as exhibits.

Bungalow Beach Hotel (BB Hotel)
Ardy Sarge, the managing director of Bungalow Beach Hotel told the Commission that it is a registered company since 1971, but he started working at the said hotel in 1979. Sarge who presented a clean bill of accounts produced documents evidencing payments of corporate tax, sales tax and payee tax from 1999 to date and they were tendered and admitted as exhibits.

The Commission chairperson, Justice Singhateh who pointed out that the documents presented by Ardy Sarge were orginals, advised him to laise with Amie Jarra, the secretary to the Commission to assist him in photocopying the said documents. Sarge however informed the Commission that there were some missing receipts, but needed sometime to search and furnish the Commission. He was then ordered to furnish the Commission with the said receipts on or before the 6th February, 2012.

Baobab Holiday Resort
Abdoulie Kandeh, the managing director of Baobab Holiday Resort told the Commission that the said Resort started as Baobab Lodge in 2000, but the name was changed to Baobab Hotel and Resort. He explained that Baobab Lodge was six apartments originally for accommodation and self-catering, until 2007 when it changed to Hotel and Resort.  A copy of business registration and change of name was tendered and admitted as BHR1. Kandeh told the Commission that he never deducted his staff salaries when it was Baobab Lodge, until when the said lodge was changed to resort in 2007.

Calabash Residence
Abdul Aziz Khan, the proprietor and manager of Calabash Residence told the Commission that the said company started operation in 2009, adding that their mode of operation is apartments rental. He said six people work presently at the said company. Meanwhile copies of income tax receipts and remittance of staff income tax from 2009 to 2011 were tendered and admitted as exhibits.

Cape Point Hotel
Ebrima Bojang, the managing director of Cape Point Hotel told the Commission that the hotel was registered in 1987 and has a staff strength of 49 employees. He produced a bundle of documents comprising income tax receipts, sales tax receipts and deduction of staff payee tax for the year under review and they were tendered and admitted as exhibits. A letter indicating some missing receipts was also tendered and admitted as exhibits.

Laico Atlantic Hotel
The financial director of Laico Atlantic Hotel in Banjul, Dr. A. Faal told the Commission that the Atlantic Hotel started operation in1979, but Laico entered into agreement with the owners of the hotel in 2009. Faal further told the Commission that there has been major transformation of the hotel from Atlantic Hotel to Corrinthia Atlantic Hotel and then to Laico Atlantic Hotel.

He produced a copy of the business registration and renewal and the management agreement before the Commission, but Justice Singhateh indicated that the Commission was not interested in the management agreement. A copy of the business registration renewal certificate was admitted as exhibit.  A copy of payee tax remittance for 2011 was also tendered and admitted as exhibit. Copies of receipts of sales tax from 2008 to 2011 were also tendered and admitted as exhibit together with a letter written to GRA titled ‘Repayment of tax’, dated 20th May, 2011 admitted as exhibit.

Dr Faal however explained how the Libyan crisis affected the management of the said hotel. The Commission chairperson, Justice Mama Fatima Singhateh however ordered that Dr A. Faal furnish the Commission with evidence of payee tax for 2009 and 2010, a copy of memorandum and article of association, together with the copy of agreement between Corrinthia Atlantic Hotel and Laico Atlantic Hotel on or before the 1st February, 2012.

Coco Ocean Resort & Spa
Sheikh Tijan Gaye, the Human Resource and Administration manager of Coco Ocean Resort & Spa told the Commission that the hotel was established in 2008 and has about 250 staff. Gaye disclosed that the certificate of incorporation of the said hotel was in the office of the general manager, Mr. Walter who went to Spain for the Christmas holiday.

Meanwhile copies of receipts for payment of income tax, sales tax and remittance of payee tax, tax clearance for 2009 and copy of business registration and renewal were tendered and admitted as exhibits. The Commission chairperson Justice Singhateh ordered that the said witness avail the Commission with a copy of the staff schedule on the 6th February, 2012.

Dalaba Residence
Jainaba Faye, the owner and operator of Dalaba Residence told the Commission that the said company was registered as an individual registered company and it started operation in 2007, after it was registered in 2006. Gaye indicated that the company is a family owned used as a training ground. She indicated that the company provides accommodation but has not been paying sales tax. Meanwhile, the Commission ordered that she returns to the GRA to be assessed on sales tax and return to the Commission with evidence of payment of sales tax on the 6th February, 2012.

Meanwhile, other witnesses included Therese Kumba Krubally of Dunes Casino and Resort, Alieu Secka of Golden Beach Hotel, Amat Gaye of Holiday Beach Hotel, Gerard Lombardo of  Kairaba Beach Hotel and Buba A. Touray of Kombo Beach Hotel.
The Commission continues sittings today, 27th January 2012.