Tax dodgers warned with 10-year prison term
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A stern warning was sent to more than 60 companies believed to have evaded income taxes, according to the customs department, and a maximum 10-year prison sentence could be incurred if the businesses are found guilty.
The customs department issued the warning on April 7, saying that the law will be enforced soon.
“The country is facing tax evasion issue. It is a country with the lowest ratio of tax participants to GDP among Asean countries. So tax law and the taxation system are being amended to collect more tax,” said Min Htut, director general of the customs department.
He said about 15,000 companies are filing and paying tax among a total of 30,000 companies registered in the country.
The authorities are planning an effective technique to collect more tax by setting a budget that requires a certain amount of collected tax to to go to wards and villages through the relevant state or regional authority.
Under the current quasi-civilian government, a tax amount of Ks 1.53 trillion (US$ 1.53 billion) was collected during the 2012 fiscal year and Ks 2.71 trillion (US$ 2.71 billion) for 2013.
A total of Ks 3.4 trillion (US$3.4 billion) is expected for the current fiscal year, according to pre-tax statistics, said Minister of Finance Win Shein.
The tax evasion will be charged under the current income tax law and commercial tax law. Section 48 of the income tax law and Section 23 under the commercial law describes how to deal with tax corruption.
The government formed the Tax Scrutiny Board last May to check that tax collection and fiscal responsibly meets international norms.
Previously, a review was made on big businesses that were avoiding tax. The procedure was carried out under the existing taxation law. However, it is not clear whether the review will excuse influential businesses that are dodging tax over the next five years.
Myanmar expects revenue of Ks 4.89 trillion or approximately US$5 billion in the fiscal year 2014-15, more than doubling from last year’s level of Ks 2.36 trillion (US$ 2.4 billion).
According to the State Revenue Act for 2014, approved by the parliament and signed by the President, some ministries will start to collect tax revenue this year for the first time. They are the Ministry of Energy, the Ministry of Electrical Power, the Ministry of Mines and the Ministry of Communication and Information Technology.
Much of the taxes collected last year were contributed by the Ministry of Finance, amounting to 98 per cent of the total. It is expected to maintain that important role this year, but the contribution at Ks 3.2 trillion or ($3.3 billion) will fall to 65.5 per cent.
