Many high-profile firms face audit over alleged evasion of taxes

His statement follows a June 1 report in Weekly Eleven that included allegations the government was protecting companies evading taxes. 

The report noted that some leading companies, such as Kanbawza, Eden, Max Myanmar, Ayeyar Hinthar, Htoo, Ayeyar Shwe War, Red Link, Myanmar CP and CB Bank, have been paying an increasing rate of tax over the years.  

Even companies seen as close to the president, such as Shwe Taung and the Union of Myanmar Economic Holding, have been paying taxes. However, certain large corporations, particularly Shwe Than Lwin and major construction companies, have not appeared on the list of top taxpayers. 

The report called for the government to scrutinise the tax liabilities of these corporations.

In his June 5 response to the report, Ye Htut said it was hasty to conclude a company was evading taxes merely because its tax payment was low. 

“The Board for Scrutinising and Monitoring Tax Collection has already been formed. The board is carrying out the collection of tax in advance and determining tax liabilities of those companies [Shwe than Lwin, Asia World, Dagon International and construction groups]. However, tax payments will be different for each corporation based on capital investment, profit generated and tax breaks,” he said.

The government is doing its best to improve the tax system in order to increase state revenues and relevant parties should check with the Revenue Department in order to appraise the tax liabilities and payments, Ye Htut said.

Thura Thaung Tin, chairperson of the board in charge of tax scrutinising, said he was currently auditing the taxpayers’ list for each sector, such as energy and construction.

Should a company be found to have dodged tax payments, it is obliged to meet its liabilities within three years.

Weekly Eleven uncovered that Shwe Than Lin’s tax liabilities were estimated at US$500,000. This was calculated from the 5 per cent tax for selling 500,000 Sky Net TV signal receivers at $20 apiece. The station should have earned $10 million in revenue.

In addition, it should be paying more than Ks 10 billion in tax from advertising revenues, estimated at Ks 40 million per day or Ks14.6 billion per year, plus service fees collected at Ks 10,000 per subscribers.

The annual fee should amount to Ks 60 billion per year based on 500,000 subscribers.

Despite its whopping earnings, Shwe Than Lin was not on the list of top taxpayers for the fiscal year 2012-13. Its 20 business units were also not on the list.