Influencing of Tax Penalties on Taxpayer Compliance in Cambodia

Taxation

This paper explores the tax penalties set by General Department of Taxation to the taxpayer in Phnom Penh, Cambodia. The purpose of this study is to feature and to understand the feedback of the business owner who are punished with tax penalties result from fail to file tax return or fail to pay tax. Businesses who violate the tax regulations of Cambodia face a variety of penalties, as outlined by the General Department of Taxation (GDT). None tax compliance is taken very seriously by the GDT. Businesses that violate tax regulations risk facing severe penalties. Businesses can safeguard themselves against financial difficulties by being aware of the tax regulations and taking action to avoid penalties. The penalties can range from a small fine to a significant financial burden, depending on the severity of the offense. In this study there will be used of analysis, survey, interpretation on the registered enterprise who conduct business in the Phnom Penh capital of Cambodia. The result of the study concludes that, low tax penalty discourages taxpayers from evading taxes, while a high tax penalty encourages bribery among tax authorities, resulting in increased revenue losses.

This work is licensed under a Creative Commons Attribution-ShareAlike 4.0 International License.