What Will Cambodia's New Special Tax Audit Unit Do?
The Royal Government of Cambodia released a new Prakas, dated July 16, 2024, creating a ‘Special Tax Audit Unit’, equivalent to a department operating under the Ministry of Economy and Finance’s General Department of Taxation (GDT).
The Prakas stated that this new tax unit is a mechanism to promote and expedite the resolution of taxpayers' problems related to tax audits as soon as possible, in accordance with Cambodia’s laws and regulations, to further improve the business and investment environment.
What Are The Responsibilities Of Cambodia’s Special Tax Audit Unit?
Under Article 2 of the Prakas, signed by Prime Minister Hun Manet and Deputy Prime Minister Aun Pornmoniroth, the special tax audit unit has the following responsibilities:
- To manage and conduct tax audits of enterprises under the unit’s jurisdiction in accordance with the laws and regulations in force, as well as the Standard Operating Procedures (SOP) on tax audits for tax officers and taxpayers,
- To be responsible for reviewing documents and conducting risk analysis at the special tax audit unit for a one-time comprehensive audit, without having to do a limited document audit of enterprises under its jurisdiction.
- To prepare an annual special tax audit plan of the enterprises under the unit’s jurisdiction based on the risk identification manual.
The unit’s other roles and responsibilities include making audits at the request of the enterprises under its jurisdiction, performing work in accordance with the SOP and laws and regulations, informing business owners about the reason for a tax audit, making monthly, quarterly, semi-annual and annual performance reports, and performing other duties assigned by the Director General of the GDT.
Which Enterprises Fall Under The Jurisdiction Of The Special Tax Audit Unit?
According to Article 7 of the Prakas, enterprises to be transferred under the jurisdiction of the special tax audit unit may be among those that have received gold tax compliance certificates and other enterprises through a committee to be established by the GDT.
What Are The Main Benefits Of The New Special Tax Audit Unit In Cambodia?
Speaking to local media, Dr. Chey Tech, a socio-economic researcher, said the new special tax audit unit will help to ensure transparency, prevent tax avoidance, and also increase tax revenue for the government.
He said that first and foremost, he expects the unit will help to address tax evasion and leakage issues. Second, he believes the unit will ensure a fair and efficient tax system. Third, it will increase tax revenue for the government. Fourth, he believes the new unit is a step forward in modernising Cambodia's tax system to align with international best practices.