Shops with no EDCs warned of tax scrutiny
Merchants that do not install the credit and debit card swiping terminals will be the main focus of the Revenue Department’s monitoring of tax payments, its chief warns.
Those that have installed the electronic data capture (EDC) terminals and pay their taxes correctly will have nothing to worry about, said Prasong Poontaneat, the department’s directorgeneral, noting that the devices will be convenient for customers.
Moreover, merchants with EDCs will obtain tax returns more expediently as the Revenue Department will prioritise them on the assumption that they have no intention of evading taxes, he said.
Under the e-tax scheme, which is a part of the government’s national e-payment plan, the Revenue Department will link all transactions paid through EDC terminals into its taxation database and alert tax-collecting agencies about tax payments.
The Finance Ministry recently granted approval to two banking consortiums to install an additional 557,055 credit and debit card swipe terminals under the e-payment scheme by March next year to fulfil the government’s goal of at least one EDC terminal in every shop. One consortium comprises Bangkok Bank and KBank, while the other — Thai Alliance Payment System — consists of five banks: Siam Commercial Bank, Krungthai Bank, Bank of Ayudhya, Thanachart Bank and TMB Bank.
Mr Prasong said tens of thousands of EDC terminals have already been installed.
The Revenue Department must amend laws to serve e-withholding taxes and e-tax invoices and legalise the use of third-party electronic tax payment data.
An informed source at the Finance Ministry estimated that the e-payment system would boost the government’s coffers by 150 billion baht annually as all e-payment data will be sent to the Revenue Department for accurate income tax calculations of both individual and corporate taxpayers.
Finance Minister Apisak Tantivorawong and permanent secretary for finance Somchai Sujjapongse have voiced concerns that merchants may be wary of higher taxes if they install EDC terminals, fears that could obstruct the EDC expansion plan.