Cambodian tax agency denies political motive for crackdown

PhNOM PENh: Cambodian tax authorities denied there is a political motive for a crackdown on delinquent taxpayers that prominently targets media and civil society organisations critical of the government.

The Department of Taxation said in a statement that the motive for seeking the tax payments is to support the national budget, and it is only an effort to make such organisations comply with the law.

Cambodia, like other developing countries, has been casual about tax collection as it promoted economic development.

Those singled out by the tax collectors include a long-established English-language newspaper, The Cambodia Daily, two US government-funded radio stations, the Voice of America and Radio Free Asia, and local human rights groups.

The crackdown came to public notice shortly after Prime Minister Hun Sen at his Aug 4 Cabinet meeting recommended government agencies investigate alleged unpaid payroll taxes at civil society organisations.

Most Cambodian media, especially TV, is owned by the government or businesspeople with close connections to authorities.

Voice of America and Radio Free Asia are among the few platforms where government critics can reach a large audience.

They are able to lease broadcast time from local radio stations.

Because they pay for the time, rather than receive income in Cambodia, their tax situation has been a matter of confusion.

The Taxation Department said their liability had to do with their having established local offices, regardless of their payments to Cambodian radio stations.

It said they needed to register with the department to be licensed.

Rohit Mahajan, a spokesman in Washington for Radio Free Asia, described the situation as “evolving”.

“There has been contradictory information from different branches of the Cambodian government,” he said in an email to reporters.

“We assure our audience in Cambodia that these issues, while we work to resolve them, will not prevent RFA from doing its important journalistic work.

“No matter what, RFA will continue bringing the people of Cambodia the trustworthy news and information they deserve.” — AP