Thailand
License for Cambodia Investment Tax Service
Cambodia Investment Tax Service has become the 44th tax agent to get a license from the General Department of Taxation (GDT) since the government made an effort to modernize and make more efficient tax collection by using private companies.
Anthony Galliano, company group CEO, said licensing and regulating the industry is a progressive and much-needed measure which should raise the competence of tax agents.
He said that the private companies and individuals have historically provided tax agent services, and tax department officials have been active in the market for preparing tax returns.
He added that the requirement to be licensed and its active enforcement should create less reliance on informal individuals and companies, who may or may not have the qualifications or proficiency to perform the service.
This lessened the risks to the client and improved tax compliance, given the implied fiduciary obligations.
“Tax compliance is a bond between the government and the taxpaying entity, with the agent in between,” Mr. Galliano said.
“All parties need to be responsible, the government ensuring fair and proper collection, the taxpayer returning the government its share through tax payments, and the agent ensuing compliance rather than dodging.
“Undoubtedly the tax system has seen its greatest improvement but there is still much to do, especially in the area of registering businesses still out of the system and improvements in the law to encourage investment and country competitiveness,” he added.
Late last year, the GDT offered 43 companies legal recognition to offer tax declaration services to the public and private sectors.
Kong Vibol, director-general of the GDT, said previously that any company wishing to offer tax services to taxpayers must be registered with his department.
He said the new rules were intended to increase the public’s understanding of their tax requirements and to lead to a boost in tax payments and therefore government revenue.
“The tax agents play the main role in helping the Taxation Department get tax declarations accurately,” Mr. Vibol said.
Mr. Galliano said that there is a significant short-to-medium term upside in the tax agency business, and welcomed further regulation of agents and enforcement.
“While tax is a massive opportunity, we will equally be focused on providing accounting services which is probably an even greater proposition, and eventually auditing services as we expect to be licensed by the year’s end,” he said.
“Our further plans include substantial expansion and diversification, with more of a focus on structuring and offering cohesive advice with our human resource firm, Premium, as there are synergies in labor and tax law advice and compliance.”
According to the GDT, tax revenue in 2016 was about $1.49 billion, an increase of 14.94 percent over 2015.
Total tax collected by the department last year reached about 105.32 percent of the target set out in the 2016 Finance Act.
In a breakdown of the latest tax numbers, Mr. Vibol noted that the $1.49 billion figure included an 18.4 percent increase in collection of profit taxes, a 20.0 percent increase in income tax, 15.4 increase in value-added tax and 23.4 percent increase in unspecified “special” taxes.
Source: http://www.khmertimeskh.com/news/36265/license-for-cambodia-investment-tax-service/