GDT revokes service agent Fedtax’s licence over ‘tax fraud and evasion’
GDT revokes service agent Fedtax’s licence over ‘tax fraud and evasion’
The General Department of Taxation (GDT) has announced its revocation of the licence of tax service agent Fedtax Business Solution Co Ltd, after finding that the company did not fulfil its stated obligations and had violated several tax laws and regulations.
A GDT announcement on April 5 said that the department has investigated Fedtax and found that it failed to fulfil its obligations as a tax service agent in accordance with Article 10 of Prakas No 455 dated April 12, 2013, on Tax Service Agents.
The company also committed offences as stated in Article 15 by failing to properly comply with the stipulations of the prakas, therefore violating the laws and regulations on taxation.
The announcement said that the company did not declare and pay taxes in accordance with the laws and regulations. It also failed to provide registration services and update enterprise information, whilst providing tax declaration services to customers “without professionalism and integrity”.
The company is also accused of evading taxes, and is said to have not communicated or worked with the tax administration “honestly”.
The GDT further stated that Fedtax “committed and conspired with clients” in tax fraud, and improperly provided services to customers that led the latter to violate tax laws and regulations.
Finally, the company is alleged to have “intentionally obstructed the setting and collection of taxes, and embezzled taxes from government institutions and customers”.
The GDT said that, pursuant to the articles and directives of the Prakas, it had decided to revoke the licence and permanently terminate the tax service business of Fedtax Business Solution Co Ltd from today onwards.
Accordingly, the company will no longer be allowed to continue to operate as a tax service agent or provide tax related services to customers, the GDT said.
GDT director-general Kong Vibol said that Fedtax’s “embezzlement” and “tax evasion” amounted to criminal cases that could likely lead to imprisonment and fines.
“I would like to remind all tax agents to be careful and not to fall into the same trap or practice of … evading taxes, because you will stand to face legal action,” he said.
Hong Vanak, director of the International Economics department at the Royal Academy of Cambodia, expressed support for the GDT action, calling it a “legitimate step” that applies the rule of law, “which all companies doing business in Cambodia are subject to”.
He added that taking action against companies and businesses will benefit both the government and companies by providing sustainability to the business and investment landscape of the Kingdom.
“If they [companies] continue to evade taxes, their social responsibilities as well as trade do not guarantee sustainability. As long as the company is involved in trade, they – like any business – must comply with this obligation,” he said.
“If they continue to embezzle and evade taxes, it will lead to a lack of social responsibility according to the law and the Cambodian people.”
