29 August 2014
The
Ministry of Economy and Finance has installed an incentive program that awards
employees of the General Department of Taxation (GDT) a share of the penalties
incurred by firms found to have unpaid tax accounts.
Director General
of the GDT confirmed yesterday that the GDT introduced the incentive program at
the beginning of this year. The scheme grants government auditors 10% of the
total penalties imposed on any company, which that employee has reassessed and
found to be non-compliant. “The Ministry of Economy and Finance gives
incentives to GTD tax auditors who can find more tax revenue, which the tax
payers’ under-declared or evaded tax of their payment to GDT. By law whoever
under declared or evaded of tax will be penalised,” adding that only auditors
were granted the incentive scheme. “This way government can get more revenue.
This incentive will not affect the budget but instead increase the revenue to
the government.”
The GDT’s
penalties for late or unpaid taxes range from 10 to 40% of the total amount
owed to the authority. The penalties also carry a monthly 2% interest charge.
Put simply, if a company is found to owe $100,000 to the GDT, the firm could be
penalised an additional $10,000 and the auditor will personally receive a
$1,000 incentive payout once the company has paid its debts. “The purpose of
this scheme of incentive is to encourage tax auditors to work hard and reward
them for those who can find more tax evasion and tax under-declared in order to
promote tax compliance and enforcement of law.” Cambodia’s GDT is on a mission
to boost tax revenue to $1 billion by the end of the year.
Executive Director
of Transparency International in Cambodia welcomed the idea of new incentives
for GDT auditors provided there is strict oversight of the employee’s
compliance to the Kingdom’s anti-corruption laws. During the first Cambodia Tax
Summit held at the Sofitel Phnom Penh yesterday, a partner at law firm VDB Loi,
said the GDT’s scheme stands to close unpaid tax accounts a lot quicker.
The GDT is
also currently looking to install a raft of new reforms including a new
arbitration committee, which would be charged with resolving tax related
disputes. “It would be the last stop in the government’s audit process.” “But
who will sit on this committee? You don’t want tax officers sitting on this
arbitration committee because you want them to be independent.”
Source:
http://www.phnompenhpost.com/business/gov%E2%80%99t-pays-auditor-incentives
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