Investigations Find Tax Avoidance in Most Auto Sale Centers

As a result of inves­tigations, the Min­istry of Commerce has frozen the bank ac­counts of 70 nationwide automobile sale centers for failing to adhere to rules and regulations.

Each bank account con­tains a minimum of K1.5 million, which is a prereq­uisite for obtaining a li­cense from the Ministry of Commerce to import and distribute automobiles.

In the first two weeks of August, the Ministry of Commerce launched a full-scale investigation into whether automobile sale centers were follow­ing ministry regulations, maintaining their facili­ties, and paying taxes. They found that 77 of the country’s 132 automobile sale centers were not.

Before the Ministry could freeze their ac­counts and revoke their licenses, 7 companies hastily withdrew their deposits. Representatives from these 7 organiza­tions couldn’t be reached for a comment.

Sale centers need to prove federal and lo­cal tax payments before their bank accounts are activated and they can re­sume business, U Myint Cho, Director of Ministry of Commerce, told Myan­mar Business Today.

Most car sales centers operated for years while dodging taxes, ignoring regulations, and even fail­ing to comply with basic structural guidelines.

“Some sale centers didn’t even have a defined location. In the course of our inspections, we found empty, dilapidated ware­houses. This was in addi­tion to a complete absence of financial disclosures and tax payments. Seven of the companies with­drew their money before we could act,” U Myint Cho told Myanmar Busi­ness Today.

While the Ministry of Commerce is responsible for dictating regulation, they are not qaulified for legal action.

“We are not equipped to disperse or enforce legal penalties. The Depart­ment of Internal Revenue will penalize on tax avoid­ance. We are only respon­sible for issuing and re­voking business licenses,” U Myint Cho said.

 

Source: Myan­mar Business Today

 

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