Cambodia Daily slapped with multimillion dollar tax bill
If The Cambodia Daily had annual external audits (like any respectable non-profit organization or corporate organization would), you could be certain that the external auditors would've raised the tax compliance issues.
For non-profit, taxes that have to be paid are tax on salary (on behalf of the employees), withholding tax on services and VAT on goods (if the supplier is not VAT-registered already).
The Daily shot itself in the foot by hiding behind its "not-for-profit" status and by for years being a thorn in the side of the Government criticizing it for its governance and rule of law records. When the Government finally says "Alright, we're gonna be serious about enforcing our laws," you better have respected the laws yourself.
For non-profit, taxes that have to be paid are tax on salary (on behalf of the employees), withholding tax on services and VAT on goods (if the supplier is not VAT-registered already).
The Daily shot itself in the foot by hiding behind its "not-for-profit" status and by for years being a thorn in the side of the Government criticizing it for its governance and rule of law records. When the Government finally says "Alright, we're gonna be serious about enforcing our laws," you better have respected the laws yourself.
gavinmac wrote:It's not based on common sense at all. And your conclusion that "It's a big operation so the CD probably deceived their employees and skimmed money from their pay under the guise of tax withholding and then pocketed the money without remitting the tax to the government" also makes no sense.scobienz wrote:It's a supposition based on common sense, and based on the fact I've been inside CD HQ and seen what a big operation it is by Cambodian standards.
You shouldn't make matter of fact statements saying that people have engaged in unethical practices without having some shred of evidence supporting those statements.
Well, one of the scenario is likely to be correct: Either the Daily withheld income tax and didn't pass it to the authorities, or they paid their staff without deducting income tax. Either way, as the tax lawyer I quoted above said, they are liable and they are fucked. I hope it's the former because if it's the latter then the staff members themselves will come under the cosh.
They better hope HE wakes up in a good mood on September 4.
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- MerkinMaker
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Gavinmac you're getting locked on to an irrelevant point. No one apart from a poster her has suggested that the CD withheld the tax but didn't pass it on
What almost certainly happened is that they didn't withhold it at all under some misplaced notion that they shouldn't have to pay it.
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What almost certainly happened is that they didn't withhold it at all under some misplaced notion that they shouldn't have to pay it.
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The US Embassy just released a statement condemning the closure of NDI and asked questions about how committed the Cambodia government is to democracy.
It's statement pointedly doesn't mention the Cambodia Daily.
http://goo.gl/16zuF6
It's statement pointedly doesn't mention the Cambodia Daily.
http://goo.gl/16zuF6
The government accused them of providing detailed strategies to CNRP about overthrowing the them. As usual with the intelligence community, we will most likely never know the truth.Marmite wrote:The US Embassy just released a statement condemning the closure of NDI and asked questions about how committed the Cambodia government is to democracy.
It's statement pointedly doesn't mention the Cambodia Daily.
http://goo.gl/16zuF6
Like Cambodia Daily, the embassy has not responded to parts of the the accusations. NDI is funded by the State department. The CIA is famous for getting involved in local politics by highly questionable means. If true, it wouldn't be the first time but SOP.
I guess the rest is for tinfoil to speculate about. One thing is sure. The statement issued by the embassy reads like propaganda.
Bless
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Actually, two posters said that:starkmonster wrote:Gavinmac you're getting locked on to an irrelevant point. No one apart from a poster her has suggested that the CD withheld the tax but didn't pass it on
It's not an an irrelevant point, because had they deducted money from their employee's pay and told the employees that the deductions were for required taxes, then this would greatly undermine their argument that they weren't required to pay these taxes.Marmite wrote:The issue of non payment of salary tax - money their management took from journalists and staff but neglected to give to the authorities - is being strangely brushed over by all the lubbers in their twitter frenzy.
/quote]
scobienz wrote:Of course they have to pay - they have deducted them from their employees for heaven's sake.
I just don't think people should make such reckless statements suggesting extreme financial sleaziness by the CD without having any evidence to support those statements.
Follow my lame Twitter feed: @gavin_mac
IS CAMBODIA COMMITTED TO DEMOCRACY? YOU DECIDE.
Is this really what we have come to in international politics and diplomacy, childish rhetoric published on social media?
Reuters quoted Hun Sen making a very fair point:
Fuck's sake. International politics has become a playground for little children. They can't speak to Reuters but they can write dramatic posts on Facebook? Like little girls, man. They really show how much they care for free media when they refuse to comment when asked direct questions by actual journalists.
Bless
Is this really what we have come to in international politics and diplomacy, childish rhetoric published on social media?
Reuters quoted Hun Sen making a very fair point:
When the very same embassy which is now moaning on social media was given the microphone they chose to not respond:"The Americans invaded Iraq and Iraqis died, why hasn't the U.S. been punished?" he said. "The Americans brought trouble to Libya, Syria, Yemen, why aren't the Americans punished?"
Has it ever occurred to the Americans that perhaps they are exporting commitment to a political system that the eastern world wants nothing to do with? Cambodia made it clear a long time ago that it would lean towards China. I'm surprised that as a free market advocate I have to explain this to a leftist group of people who normally cheer on communist regimes. Supply and demand, Cambodia is clearly not interested in committing to the American model. Officials acting disappointed on Facebook is beyond ridiculous. Welcome to 2017 politics, I suppose. Whatever happened to America first and not funding these NGOs? They already cut off USAID. And what about the accusations that State department sponsored NDI plotted against the government, or that Cambodia Daily withheld taxes, screwing employees or not?Arend C. Zwartjes, public affairs officer at U.S. Embassy in Cambodia, declined to comment.
Fuck's sake. International politics has become a playground for little children. They can't speak to Reuters but they can write dramatic posts on Facebook? Like little girls, man. They really show how much they care for free media when they refuse to comment when asked direct questions by actual journalists.
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- MerkinMaker
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The US doesn't want democracy, they merely want a system where by they can influence who is in charge. Democracy just happens to currently be the best fit.
All of this is an offensive on US soft power in Cambodia. They revealed their hand at the last election and lost, they're not going to be given a second shot.
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All of this is an offensive on US soft power in Cambodia. They revealed their hand at the last election and lost, they're not going to be given a second shot.
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These dubious organizations like the International Republican Institute and National Democratic Institute have been backing the opposition since way back. They have no interest in democracy, they just want more US influence in the region. It's great to see them getting kicked out, and I'm looking forward to celebrating the Daily's demise in a couple of weeks.
Romantic Cambodia is dead and gone. It's with McKinley in the grave.
Correct, just ask Mohammad Mosaddegh, Salvador Allende or Patrice Lumumba. I guess their commitment wasn't good enough. Wonder what US embassies would have written on Facebook about them, had it existed at the time?starkmonster wrote:The US doesn't want democracy, they merely want a system where by they can influence who is in charge. Democracy just happens to currently be the best fit.
Bless
It's my assessment of what is most likely to have happened, backed up by a tax lawyer with close knowledge and experience of these Unilateral Tax Assessments. If my assessment is wrong, so be it. We shall see.gavinmac wrote:
It's not an an irrelevant point, because had they deducted money from their employee's pay and told the employees that the deductions were for required taxes, then this would greatly undermine their argument that they weren't required to pay these taxes.
I just don't think people should make such reckless statements suggesting extreme financial sleaziness by the CD without having any evidence to support those statements.
I've asked two CD journalists (one current, one former) about the salary tax issue today, trying to get a better sense of what happens. Neither of them have responded. Perhaps that's understandable.
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scobienz wrote:
It's my assessment of what is most likely to have happened, backed up by a tax lawyer with close knowledge and experience of these Unilateral Tax Assessments. If my assessment is wrong, so be it. We shall see.
I've asked two CD journalists (one current, one former) about the salary tax issue today, trying to get a better sense of what happens. Neither of them have responded. Perhaps that's understandable.
Assessment? It's not an assessment. You're making a factual statement.
Why would you say, or, "assess" such a thing? Do you have evidence of this? Has someone with knowledge of their finances told you this is what they did?scobienz wrote:they have deducted them from their employees for heaven's sake.
You have some sort of hard on for the Daily and it's making you write stupid and reckless things. It's fine to say "it looks like they didn't pay their taxes," it's irresponsible to add in "for heaven's sake they deducted it from their employees' pay" when you have absolutely no reason to believe that's true.
Follow my lame Twitter feed: @gavin_mac
How ironic. Just yesterday you made the following comments on this very topic, replying to a suggestion that the Daily's best course of action would have been to try to open a dialogue with the tax authorities:
A dialogue about what?
About saving their own skins by making concessions to the government about their reporting?
About paying millions in bullshit taxes as a penalty for their honest and accurate reporting about the regime?
Fuck that. Their response to call this a shakedown and attempt to intimidate and quash the foreign press is spot on. The only question is whether the regime has the guts to do what they have threatened.
In that post, you made a variety of statements of fact. You described the tax demand as 'bullshit', and called the authority's actions 'a shakedown and atttempt to intimidate and quash the foreign press.'
What evidence do you have to make those statements of fact? Do y ou have evidence they don't owe that tax? Have you seen their financial reports? Have you seen the memos from HE to the Tax Authorities demanding the crackdown because they don't like their honest and accurate reporting.
I like the Daily. It's the best of the bunch. I certainly don't have a hardon for them. I wonder if you do, though, and why because you are certainly making a lot of unfounded factual statements in your passionate defence of them. And I must say it seems very out of character.
A dialogue about what?
About saving their own skins by making concessions to the government about their reporting?
About paying millions in bullshit taxes as a penalty for their honest and accurate reporting about the regime?
Fuck that. Their response to call this a shakedown and attempt to intimidate and quash the foreign press is spot on. The only question is whether the regime has the guts to do what they have threatened.
In that post, you made a variety of statements of fact. You described the tax demand as 'bullshit', and called the authority's actions 'a shakedown and atttempt to intimidate and quash the foreign press.'
What evidence do you have to make those statements of fact? Do y ou have evidence they don't owe that tax? Have you seen their financial reports? Have you seen the memos from HE to the Tax Authorities demanding the crackdown because they don't like their honest and accurate reporting.
I like the Daily. It's the best of the bunch. I certainly don't have a hardon for them. I wonder if you do, though, and why because you are certainly making a lot of unfounded factual statements in your passionate defence of them. And I must say it seems very out of character.
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