Back tax probe threat on the table

Revenue Department database links soon

The Revenue Department is warning 3 million individuals and 200,000 corporate firms to enter the formal tax system or risk facing backdated tax payment probes.

People and companies should enter the tax system as soon as possible because the department’s tax database will soon be connected to related agencies so that probes of backdated tax bills can be launched, said Sommai Siriudomset, a principal adviser on strategic tax administration.

The department has expanded the taxpayer base by 1.7 million individuals this year from 10 million in 2018, yet 3 million individuals were still found to be avoiding the tax system, Mrs Sommai said.

The tax-collecting agency wants to bring 1 million individuals into the tax system each year to engender fairness, she said.

For corporations, Mrs Sommai said 600,000 juristic persons are registered with the Commerce Ministry’s Business

Development Department, but only 400,000 are in the tax system.

Ekniti Nitithanprapas, director-general of the Revenue Department, has said the agency plans to use a carrotand-stick approach to add people and corporations to the tax system.

The department reported 14 million personal income tax filers. Individuals who earn income from employment and other sources of income must file tax returns if total income exceeds 60,000 baht. Income of more than 310,000 baht a year is the minimum band that is required to file tax bills.

Mrs Sommai said a draft bill on e-business tax is being deliberated by the Council of State.

Under the bill, digital platform operators providing services (including online games, sticker downloads, online ads, digital content and online hotel bookings) that generate annual sales of more than 1.8 million baht in Thailand must register for value-added tax payment and are liable for sales tax.

Mrs Sommai voiced confidence that the department’s revenue collection target of 2.12 trillion baht for fiscal 2020 is achievable.

The department’s tax revenue for fiscal 2019 outpaced the target for the first time since fiscal 2012. Tax revenue totalled 2.01 trillion baht in the last fiscal year, exceeding the target by 9.14 billion baht or 0.5%.

The haul was attributed to adoption of data analysis, allowing the department to better verify payments.

Providing a penalty exemption for small-business operators who signed up for the single financial account scheme but failed to comply with the requirement in return for submitting tax forms electronically for the 12 months through June 30, 2020 also boosted the Revenue Department’s income by 3 billion baht, Mrs Sommai said.

Only business operators earning an annual income of up to 500 million baht were allowed to join the scheme.

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The Revenue Department wants to bring 1 million individuals into the tax system each year to engender fairness. SOMMAI SIRIUDOMSET Principal adviser on strategic tax administration