Thai gov. to tax (remitted) income from abroad for tax residents starting 2024 - Part II

[Mike Lister]

An interesting diversion but still very related is the 2022 AMLO report into Money Laundering Risks, of which Tax Evasion and Fraud is a key element. It's an interesting read because it puts tax fraud into context of the wider picture and helps explain why the current actions are being taken. Narcotic is the largest most prosecuted crime in this basket but if I read it correctly, tax fraud generated the most by way of seizures which makes it a cash cow:

 

"The largest amount of seizures between 2018 to 2020 were tax evasion and tax fraud with 1,692,205,790 Baht/year on average, or 32.23%"

 

https://www.amlo.go.th/amlo-intranet/media/k2/attachments/NRAYThailandYforYPublicationYEnglish_6112.pdf

 

Another useful quote that's worth remembering is that some small accounts, typically pensioner based, are not required to be reported and shared under international rules. Hopefully this relieves some of the stresses from expat pensioners who fear becoming an equal subject of scrutiny as the drug trafficker and billionaire evader.

 

There's a second paper which also includes some useful insights and helps fills some information gaps about the shadow economy and tax losses. As discussed previously, the black and white are simple to understand but the grey is tricky:

 

"2.1. Tax avoidance and evasion There is a distinction in the literature between “tax evasion” and “tax avoidance”. For example, The International Bureau of Fiscal Documentation (IBFD) highlights that “avoidance is a term used to describe taxpayer behaviour aimed at reducing tax liability that falls short of tax evasion” (IBFD, 2009, p. 30). Thus, tax avoidance is seen as legal. By contrast, tax evasion is defined as the illegal non-payment of tax; this non-compliance with tax legislation is a crime which is punishable by some sanction. In practice the differences between tax evasion and tax avoidance activities are “complex with numerous shades of grey in between legal and illegal practices” (Sikka, 2014, p. 135). The difference depends on the legitimacy of a taxpayer’s activities (Sandmo, 2005) and this legitimacy will often have to be decided by a court if there is “a legal challenge by the tax authorities” (Sikka, 2014, p. 135)".

 

https://pure.strath.ac.uk/ws/portalfiles/portal/173682872/Natpraypant_etal_AF_2023_The_introduction_of_anti_tax_evasion_legislation_in_Thailand.pdf

 

 

[stat]

15 hours ago, Lorry said:

Me too, but I don't have specific reasons except my general impression of Cambodia. 

Foreign friends who moved from Thailand to Cambodia think I am prejudiced. 

Can you name specific reasons?

 

BTW if asking for brokerage,  too, then I really wouldn't know any respectable place that's not in FATCA/CRS

Do you really need a specific reasons to not trust an autocratic regime with an instable banking system?

 

Ok here you go:

 

https://countryeconomy.com/ratings/cambodia

 

Nothing against cambodia and putting 5K in a bank there but that would be the maximum for any prudent person.

 

If a developed country like malaysia imposed capital controls you can imagine what could happen in Cambodia.

 

 

[topt]

7 hours ago, Mike Lister said:

Another useful quote that's worth remembering is that some small accounts, typically pensioner based, are not required to be reported and shared under international rules.

Mike thanks for those interesting links but can you remember where the above came from as I could not see it in either of those links when I read/skipped through them.?

[Mike Lister]

4 minutes ago, topt said:

Mike thanks for those interesting links but can you remember where the above came from as I could not see it in either of those links when I read/skipped through them.?

I do not but I will look and I'm sure I can find it again and will let you know.

[Mike Lister]

32 minutes ago, topt said:

Mike thanks for those interesting links but can you remember where the above came from as I could not see it in either of those links when I read/skipped through them.?

The quote regarding largest seizure of assets appears on page 19 of the AMLO report.

 

I'll let you know the other shortly

 

 

[Lorry]

59 minutes ago, stat said:

Do you really need a specific reasons to not trust an autocratic regime with an instable banking system?

 

Ok here you go:

 

https://countryeconomy.com/ratings/cambodia

 

Nothing against cambodia and putting 5K in a bank there but that would be the maximum for any prudent person.

 

If a developed country like malaysia imposed capital controls you can imagine what could happen in Cambodia.

 

 

Yes, that was my general feeling too...

There were posters on AN proud of the high interest their USD account in Cambodia had, I always felt this was completely crazy

Edited Thursday at 08:33 AM by Lorry

[stat]

24 minutes ago, Lorry said:

Yes, that was my general feeling too...

There were posters on AN proud of the high interest their USD account in Cambodia had, I always felt this was completely crazy

You can "invest" some "play" money in cambodia but not your nestegg.

[Mike Lister]

2 hours ago, topt said:

Mike thanks for those interesting links but can you remember where the above came from as I could not see it in either of those links when I read/skipped through them.?

It's buried in the link somewhere because that's where I first saw it, currently however it's elusive! The link below says the same thing"

 

"What are non-reportable accounts under CRS?

 

Non Reportable Accounts Include retirement and pension accounts; non-retirement tax-favoured accounts; term life insurance contracts; estate accounts; escrow accounts; depository accounts due to not-returned overpayments; other low-risk excluded accounts".

 

Also, the TRD guidance on CRS, FYI

 

https://www.rd.go.th/fileadmin/user_upload/FATCA_File/crs/Thailand_CRS_Guidance_180823_VF.pdf

 

[Lorry]

1 hour ago, Mike Lister said:

It's buried in the link somewhere because that's where I first saw it, currently however it's elusive! The link below says the same thing"

 

"What are non-reportable accounts under CRS?

 

Non Reportable Accounts Include retirement and pension accounts; non-retirement tax-favoured accounts; term life insurance contracts; estate accounts; escrow accounts; depository accounts due to not-returned overpayments; other low-risk excluded accounts".

 

Also, the TRD guidance on CRS, FYI

 

https://www.rd.go.th/fileadmin/user_upload/FATCA_File/crs/Thailand_CRS_Guidance_180823_VF.pdf

 

This is all very nice. 

And when I was young and naive I studied these things in detail and believed them. 

Now I have learned what banks and tax offices actually do in reality,  and how little relationship there is to all these nice rules. 

 

[KhunHeineken]

On 6/27/2024 at 8:58 AM, stat said:

You can "invest" some "play" money in cambodia but not your nestegg.

Nest egg in Singapore, play money in Cambodia, and elsewhere.  

[stat]

https://youtu.be/ljy7qdhy4VU

 

Interview with a tax professional, some interesting statements

Edited 2 hours ago by stat