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Tax dept pressures 4 firms

Prathna​​   On May 28, 2020 - 2:43 pm​   In Cambodia Insider  
Tax dept pressures 4 firms Tax dept pressures 4 firms

The General Department of Taxation (GDT) recently issued letters inviting four companies for their tax debt settlements, noting that tax payment is an obligation on all those playing a significant role in contributing to the national budget.

In separate letters signed by Kong Vibol’s GDT director general, four companies were invited to settle their tax debts – including, So Nguon Transportation & Service Import and Export Co Ltd, owned by Oknha So Nguon, Nguon Vothy Trading Development Corp Co Ltd, chaired by Oknha Srey Vothy, Oknha Siv Kong Triv, owner of Triv KT Pacific Group Ltd and Heng Heng Import Export Co Ltd, chaired by Sok Heng.

The same GDT letter was separately sent to Oknha So Nguon and Oknha Srey Vothy dated on March 25, while the two remaining business owners’ letters were dated May 19. The tax department said it had already invited those business owners to settle their tax debts through invitations sent to their companies’ addresses, but have not had yet responded for the settlement demand.

“In accordance with the article 95 (new) in section sixth on the Fiscal Law, the General Department of Taxation formally invites you to solve the tax debt settlement no later than 15 days after the invitation dated,” the letters read.

The GDT warned that in case these business owners do not settle [during the 15 day period], these business owners will be deemed to have committed criminal offences based on the tax regulation as enshrined in articles 127,135 and 136 of the Fiscal Law, while being warned legal action could be taken against them.

Khmer Times tried to reach GDT for clarification whether or not these cases have been resolved, but but an official said she is not authorised to speak to the media about the cases. Kong Vibol’s GDT director-general declined to comment.

“I cannot give any comments right now because I am holding a meeting. If you have [any] questions, send them to my email,” he said.

Khmer Times contacted the three OKnhas’ companies for clarification, but there no one responded at the time of going to press.

Anthony Galliano, Group CEO of corporate finance firm Investment Management, told Khmer Times yesterday that he can understand the tactics of the GDT because it is not unusual for disputed tax audits to drag on through objections and the failure of the parties to settle.

He said it was conceivable that the GDT was owed large amounts. He added it is not uncommon for tax departments globally to negotiate settlements for substantial debts.

During this economic downturn it is wise for the GDT to settle and collect long outstanding unpaid assessments to boost revenues, as long as there is fair application in the process and procedure, he added.

Galliano noted there are complaints from taxpayers that auditors commence audits with frivolous assessments; there are also cases when taxpayers knowingly and purposely evade tax.

“The balance is providing a degree of comfort to honest and compliant taxpayers that they will be fairly treated in audits and the certainty and assurance that non-compliant evaders will be penalised and punished,” he noted.

Sorn Chey, the executive director of the Affiliated Network for Social Accountability, acknowledged that tax collection has gradually improved since 2013, but said that more work needs to be done for equality in the treatmentof tax obligations.

He added the government could lose revenue and the fiscal law needs to be enforced and treated equally.

In April 2017, Prime Minister Hun Sen issued a new sub-decree raising the minimum donation required to receive the honorific title of Oknha from $100,000 to $500,000.

The new sub-decree, which was signed on March 20, replaces an earlier one from April 1994, that said wealthy benefactors who gave at least $100,000 to the government and directed their money toward initiatives to help society would receive a Sathapana Cheat medal from the King and the royally-bestowed title of Oknha.

Now, the government will only ask the King to give the Oknha title to individuals who contribute $500,000 or more.

Credited: Khmer Times

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