AI makeover set for taxes

The

Revenue Department is taking aim at transforming into a fully digital organisation by 2020 and adopting artificial intelligence (AI) to curb tax evasion by the same year, its chief says.

“My dream is not only to adopt data analytics but also AI,” Ekniti Nitithanprapas, director-general of the Revenue Department, said after he delivered his policy statement to high-ranking revenue officials yesterday.

Data analytics will be used in tax collection management and to operate the entire system by 2020, while the department will also adopt AI to track down individuals and entities that understate or evade tax bills, he said.

In 2020, the Revenue Department will be turned into a fully digital organisation and e-tax filing, e-tax invoice and e-receipt systems will be implemented to strengthen the country’s competitive advantage and ease of doing business to comply with the government’s policy, he said.

Data analytics will be used to forecast income of operators, track tax collection and examination, and the system can reduce the time necessary for tax examination.

At present, 10 million individual taxpayers submit income tax filings and 3 million of them request tax returns. However, Thailand has a combined workforce of 30 million and data analytics will be used to investigate the difference.

Apart from data analytics and AI, the Revenue Department will use chatbots to answer taxpayers’ questions, Mr Ekniti said, adding that the use of multiple copies of unnecessary documents will be halted.

He said most taxpayers are good people who pay taxes correctly and the digital system will make the process more convenient for them.

However, those who avoid or understate tax payments, and accounting firms that take part in tax evasions, will be punished by law, he said.

For the single financial account scheme for small and medium-sized enterprises (SMEs), Mr Ekniti said the Revenue Department, under his management, will continue to pursue the scheme and the central bank’s requirement for commercial banks to use financial accounts filed with the Revenue Department for loan approval, starting from Jan 1 next year, will remain on track.

He said that whether value-added tax (VAT) will be cut or raised should depend on economic circumstances.

VAT hikes could take a toll on the economy as it gains momentum, he said.

Regarding e-business tax, a levy on online purchases, advertisements and website rent in Thailand earned by operators with a presence outside the country, Mr Ekniti said the law will level the playing field for local online vendors, otherwise they cannot compete with overseas operators.

He said the Revenue Department aims to collect 1.86 trillion baht this fiscal year, down from its original target of 1.9 trillion.