Hi all,

 

I know what the penalties are for taking out the LTF and RMF early (e.g. paying back the tax, plus fines plus any capital gains), but what if one is overseas, needs to release these funds in an emergency and does not have the ability to pay back the tax, penalty charges and interest at present? Is this a criminal offense? Or is it simply that if you pop up on the payroll in Thailand again, you need to pay it all back? What are the likely consequences?

 

Many thanks,

 

S

"...but what if one is overseas, needs to release these funds in an emergency and does not have the ability to pay back the tax, penalty charges and interest at present?"

 

Your bank will deduct all amounts owing and then they will give you the balance.

If you were to try using the full terminology in lieu of codes, perhaps people could give you an answer.

As blackcab said, it is not possible to get into the situation you describe.

 

When you ask for the money, the bank will calculate the penalties, fees, and back taxes you may owe at the highest tax bracket for the year (which could be as high as 37%) and send that to the government as withholding. You will get the remainder.  It is all computerized, automatic and you won't be given any other options.

 

In theory, if the withholding was too much, you could go back to the revenue department, refile your taxes for the years in question and try and claim back the difference. Practically, I'm not sure if it would be worth it unless the amounts were really extreme. Most people who are participating in RMF's and LTF's are in pretty high tax brackets to begin with.

 

Thanks for the help; this stuff is really confusing me!

 

I was concerned that as soon as I started work again in Thailand I’d be dragged kicking and screaming into Bang Kwang... or hit with a monsterous tax bill. Or both.

 

So, am I right in saying that:

 

a) I’m not in trouble;

b) I can happily go back on the payroll in Thailand without having to pay a huge fine;

c) Any money I owe will be deducted before I can take it out, and all I can take out is the balance that is left?

 

26 minutes ago, Shane Patrick said:

So, am I right in saying that:

 

a) I’m not in trouble;

b) I can happily go back on the payroll in Thailand without having to pay a huge fine;

c) Any money I owe will be deducted before I can take it out, and all I can take out is the balance that is left?

 

a. In trouble for what?

 

b. A fine for what?

 

c. Correct.

11 hours ago, blackcab said:

 

a. In trouble for what?

 

b. A fine for what?

 

c. Correct.

Ref: a): In trouble for taking the money out early...

 

        b) ditto

4 hours ago, Shane Patrick said:

Ref: a): In trouble for taking the money out early...

 

        b) ditto

 

A. No.

 

B. No.

 

You just paid tax. You're a friend, not an enemy.