Govt inspects tax liabilities of tax-evading cronies

Govt inspects tax liabilities of tax-evading cronies

Published on Saturday, 07 June 2014 19:04

The government is checking the actual tax liabilities of the business corporations which did not include in the top tax payers list, including Shwe Than Lwin (Sky Net), Dagon International and Asia World, according to the Deputy Information Minister-cum- president spokesperson Ye Htut. 

The Weekly Eleven has printed the news "Govt needs to clarify obvious protection of tax-evading companies" on 1st June.

The news says that some of the top companies such as Kanbawza, Eden, Max Myanmar, Ayeyar Hinthar, Htoo, Ayeyar Shwe War, Red Link, Myanmar CP, and CB Bank are paying tax more and more yearly.  Even companies closely related with the president like Shwe Taung and the Union of Myanmar Economic Holdings Limited (UMEHL) paid tax. However, large corporations – to precise – Shwe Than Lwin (Sky Net), Dagon International, Asia World and other top construction groups did not involve in the top tax payers list. Therefore, the government should scrutinize the tax liability of such corporations. 

The Deputy Information Minister Ye Htut responded the news on June 5.

Ye Htut said "The government is trying to fix the taxation system in order to increase the state revenue and the high-ranked companies to pay their actual liability. The government is giving certificate of honour to the top tax payers. The Board for Scrutinizing and Monitoring of Tax Collection has already been organized. The board is carrying out to collect the tax in advance, and setting the actual tax liability of those companies [Shwe Than Lwin, Asia World, Dagon Int'l and construction groups]. However, tax revenue will be different from each corporations based on the capital investment, profit generation and tax relief. We can't say a company is tax evading for its payment is low. If you want to know the tax payment of such organisations, you should ask the revenue department." 

Thura Thaung Tin, the chairman of the Board for Scrutinizing and Monitoring of Tax Collection said that the board is currently inspecting the tax payers list for each sector like energy or construction. Once the company is found out the tax evasion, it has to pay the tax liability for three years. 

The news in Weekly Eleven revealed that Shwe Than Lwin (Sky Net) has to pay at least US$ 500,000 taxes, with 5 percent taxing, based on selling 500,000 Sky Net signal receivers with US$ 20 to subscribers, which generate the station's revenues of US$ 10 million.  

Plus, the station should be paying more than Ks 10 billion annual taxes when accumulating on daily advertising income which could be Ks 40 million a day or Ks 14.6 billion for a year averagely and monthly service fee which is  Ks 10,000 per subscribers when calculating on 500,000 subscribers that would be Ks 60 billion.

It is obvious that scrutiny should be applied why Shwe Than Lwin did not list in the top tax payers for FS 2012-13. It shall be scrutinized all twenty business units under Shwe Than Lwin did not include in the top tax payers list. 

Regarding with the Asia World and its related businesses, the news printed that it shall be verified that the amount of tax paying by Asia World which involves in Myitsone Dam Project, its sister company which has permission for Thoutyaykhat (2) Project and its collecting Ks 4 billion toll fees. 

Regarding with the Dagon International, the Weekly Eleven printed that the Dagon International is taking the Chair of the biggest business organisation in Myanmar, also exporting the large tons of logs yearly. The government should scrutinize whether the Dagon International is abusing the taxation law or the business is showing loss.

The trading tax has to be paid no matter what the business is profiting or losing. The state's actual revenue will be gained by inspecting and monitoring such corporations' tax payments.

Source: http://www.news.myanmaronlinecentre.com/2014/06/07/govt-inspects-tax-liabilities-of-tax-evading-cronies/