Among large business corporations, Kanbawza Bank is at the head of the table in contributing around US$17 million (Ks 16.54 billion) in tax money to the state. That figure suggests that high taxpayers tend to have legal incomes of between US$100-200 million. Other big businesses pay less than US$10 million. According to the Shwe Taung Group, from an interview with The Nation newspaper, the company has US$500 million invested in the construction sector. The report shows that other businesses have more than US$100 million in investments. So there are big questions to be asked about the discrepancies between sums invested and amount paid in taxes.
Capita that does not reveal where it comes from includes money that is invested in real estate and the construction sectors and then passes through banks from Singapore, Hong Kong and China. Those kinds of investments are indirectly connected with money laundering.
According to official sources, foreign investment reached more than US$43 billion by the end August, and investments in joint ventures between overseas and local companies were included in this amount. Moreover, local investment was in excess of Ks 3329 billion by the end August.
The Myanmar Investment Commission (MIC) and the Ministry of Finance and Revenue are responsible for clarifying whether or not these investments are made with legal capital. They need to determine whether the money is taxpaying money or laundered money. If the money is not taxpaying money, it will need to be dealt with according to the law.
According to the latest surveys, Myanmar is the second largest heroin producer in the world after Afghanistan.
In that kind of situation, the government needs to scrutinize how crony business trends, corruption, money laundering and narcotic drugs are associated with investments made by Myanmar citizens. Eleven Media recommends that it is time to blow the lid on the relationship between money laundering and investment. It is time for transparency.
You must be logged in to post a comment.