Amendment to tax code gives government auditors access to financial data

29
Mar
2017

Article 99 of the 2017 Law on Financial Management, which came into effect on 1 January 2017, was amended to allow the General Department of Taxation to request financial data from various financial institutions, providing a powerful tool to identify tax evasion and a strong deterrent to prevent it.

The amendment gives the government auditors clearer authority to access individual and corporate financial data, and to scrutinize discrepancies between the bank statements and tax returns. This measure forces the taxpayer to fully record and properly account for taxable business activity.

The amendment closes a loophole in the system which for a long time had enabled taxpayers to use undisclosed bank accounts to conceal true business activity.

If you have any questions or require any additional information, please contact SokSiphana&associates (a member of ZICO Law).


This alert is for general information only and is not a substitute for legal advice.