ABSTRACT

Cambodia tax system is a self-assessment tax system which required enterprises that meet the requirement for tax registration including but not limited to their legalities and turnover’s thresholds to register with the Cambodian tax authority as a small taxpayer, medium taxpayer, or a large taxpayer. These enterprises will self-assess the amounts of taxes to be paid and submit their tax returns with payment of taxes to the tax authority on monthly and annually basis. However, the Cambodia tax regulations provide powers to tax authority to conduct the tax audit and reassess the tax amounts of the enterprises. This research paper aims to provide analysis on how importance the tax audits which conducted by relevant tax authorities are and also discusses the implications of this tax audit for the private enterprises in Cambodia. Based on the data analysis, the research shows that the comprehensive tax audit is more useful for private enterprise compared to the desk tax audit or limited tax audit. This paper provides a suggestion that a combined tax audits would be best for both the tax authority and private enterprise to deal with issues encountered during the tax audit process and can help minimize the tax cost including penalty and interest of private enterprises.

Keywords: tax audit, desk tax audit, limited tax audit, comprehensive tax Audit