Thai Finance Minister firm on tax waiver

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Minister firm on tax waiver 

By   THE NATION 

 

File photo : Apisak

 

FINANCE MINISTER Apisak Tantivorawong has insisted on waiving withholding tax levied on interest-based income in an excess of Bt20,000 on concerns over the possible impact on depositors, according to Revenue Department director-general Prasong Poontaneat.

 

Prasong said the department will not abolish its exemption of withholding tax levied on the excessive amount of interest-based income of Bt20,000 as earlier planned.

 

The decision came after his discussion with Apisak on the matter on Monday.

 

Previously, the finance minister and the Revenue Department had agreed to cancel the withholding-tax waiver after finding a medium-sized bank’s lack of governance in helping its customers to avoid the 15 per cent tax levied on interest in excess of Bt20,000.

 

Meanwhile, the Bank of Thailand (BOT) has issued a new guideline to supervise and inspect commercial banks for irregular behaviour, prompting the finace ministry to postpone its decision on the tax waiver.

 

“The existing guideline is used for tax on interest. There has been no change or amendment yet as the Revenue Department and the Ministry of Finance do not want any change to affect depositors. We will wait and see the impacts from the BOT’s supervision first,” Prasong said.

 

In regard to the inspection of more than 10 zero-dollar touring firms whose tax payment does not exceed Bt10 billion, he explained that aside from OA Transport Co Ltd which allegedly avoided tax of over Bt7 billion, four to five touring firms had contacted the Revenue Department to pay their remaining tax in millions of baht, citing that these firms did not know that they had not paid the full amounts. 

 

As for those companies which have yet to pay, they will be contacted by the department, he said, noting that cases will be filed if they failed to come forwards and settle the tax amounts due. 

 

Source: http://www.nationmultimedia.com/detail/Economy/30327771

 

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