Omg The Tax Man Is Coming To Get Us

[sunholidaysun1]

Rumour last night in town was that several foreigners living here in Chiang Rai have been visited by 3 local tax officers.

They have demanded back taxes for transfering money from the home country to Thailand ?

Apparently they have a huge list of names , passport details , residence addresses , bank account details etc etc.

Looks like if this is true then there has been a lot of time compiling all the information about us all .

I was told its about 20% tax we would have to pay on monies brought in , so if lets say you brought in 1m Baht , the tax would be 200,000 .

Has anyone been visited or have any facts about this please .

[TheWalkingMan]

I cleaned it up... (and I deleted the garbage post - Crossy)

1) Foreign currency

Foreign currencies can be brought into Thailand without limit. Any person receiving foreign currencies is required to surrender foreign currencies to an authorized bank or to deposit the same in a foreign currency account within 7 days from receipt, except foreigners temporarily staying in Thailand for not more than three months, foreign embassies, and international organizations.

Foreign exchange cover with authorized banks in Thailand is generally available where a genuine underlying current or capital transaction exists and not contrary to exchange control policy at the time.

There is no restriction on the amount of Thai currency that may be brought into the country. A person travelling to Thailand's bordering countries including Vietnam is allowed to take out local currency up to 500,000 baht and to other country up to 50,000 baht respectively without authorization.

I smell a scam.

Edited November 2, 2011 by Crossy

[dindong]

A bit of sensationalism or maybe just looking for a bit of attention.

[bkkjames]

Sounds like a local bank branch employee has informed somebody with official looking black jackets over a bottle of whiskey soda....when rumor becomes fact, please report back.

[Crossy]

It does sound like a scam, or at least deliberate misinterpretation of the law.

As I understand it, foreign currency transferred into Thailand is taxable only if it is transferred in the same year as it is earned.

How the authorities can determine which of the USD in my offshore account are this years and which are last lord only knows. Indeed, they don't even have access to the account to know how many USD are in it.

[sunholidaysun1]

As I stated on the original post,it is only a rumour and that I wanted information from anyone who has been visited to determine fact from fiction.

If the Thai banks have been ordered to hand over all of our Thai bank details , the tax man will know who we are, what money has been deposited , where we live etc. Immigration can provide all the passport details to add to the information held by the tax man. If they feel we are owing the Thai tax people money then maybe this is why the aledged visits are taking place.

The other possible reason are those of us who have businesses here and have failed to submit the yearly tax returns on monnies earned from the business in Thailand , then maybe the tax man is only after those who have failed to pay business tax.

I hope someone will put us straight on who and what these tax men want.

My advise to those who are visited, DO NOT pay them cash, go to the taxation office and pay it there , then there will be no doubts as to possible con.

[bifftastic]

Forgive me if I'm being a bit thick (it does happen from time to time!) but if the Thai tax authorities were interested in back taxes, surely it would be from money earned in Thailand as opposed to that which was transferred into the country from abroad?

If any bods do turn up on your doorstep trying to get you to pay tax on money you've already paid tax on, I would give them the phone number of (in my case) HMRC and let them sort it out with them!

[bkkjames]

Surely they would start in a place with a few more expats-no offense.

[sunholidaysun1]

Surely they would start in a place with a few more expats-no offense.

If we can find out the real reason behind the visits that would help . At the moment we are only speculating as to the reason for the visits and from the conversations talking about it last night.

Hopefully one of the CR members will put us straight as to what they want.

[bkkjames]

Its a scam or as you said some dodgy farang business owner didn't pay his bribes-i mean taxes.

[brianmarinus]

Hi!

As the OP said-it is a rumor-and until we get other informations,.lets think at it as a rumor and nothing else.

If some one show up at your place-call the tax office, or the police-nothing else to do.

I think that if the tax office wanted to talk to eny one,they wood send you a letter or give you a call.

Another opportunity wood be-call the tax office, and ask what it is all about.

[SantiSuk]

Money remitted into Thailand is only taxable in Thailand if it has been earned in a non-Thai country in the same year. How do the Thai tax people know? They don't - but a (genuine) tax authority person is no doubt entitled to ask you to prove that any remittances you have made are not from the current years earnings. How would you prove that earnings are not current year? Hopefully you could demonstrate that you had sufficient capital overseas at the start of the year from which you can at least assert that current year remittances have been sourced. Or, put another way around, that you still have capital in your foreign accounts at the end of a year that equals or exceeds the foreign earnings of that year.

Some TV posters have said that it may well be helpful to have separated out current year earnings in foreign countries so that they have been credited into bank accounts from which you have made no remittances to Thailand. While I intend to sort out my accounts to achieve this in future (!), because it makes some sense, I understand that this is no guarantee that the tax authorities will leave you alone - ie there are no fixed tests that determine how a falang can prove that remittances have not come from current earnings.

Note also that many countries have double taxation treaties with Thailand such that earnings from another country that have been taxed in that other country would only be taxable in Thailand to the extent that the tax rate in Thailand is higher than in that other country. For Brits it is unlikely that additional tax would be payable in Thailand if earnings have already been paid in the UK (since tax rates in the UK usually exceed those in Thailand.

You are only required to file a tax return in Thailand if you have income that should result in you paying taxation in Thailand (I understand). I think this means that even if you have income that should be subject to tax in Thailand but there are allowances in Thai taxation that would result in you paying no Thai taxation then you do not ned to file a tax return. I hope so for the sake of all those who have small amounts of savings interest on Thai savings accounts, but I am not 100% sure.

I have no doubt that there will be some falang in Thailand who are remitting current year earnings and there is either no tax treaty or they have paid no taxes in that foreign country. Looks like you need to watch your backs!

I agree that you would be well advised to only discuss your tax affairs with a tax authority person who has proved his identity and requesting that this be at a tax office seems good advice (though tax personnel in many countries have powers to begin investigations at an individual's business or personal premises - the dreaded tax raid!). Better advice would be to try to defer any discussions until you can be represented by an appropriate tax accountant or tax lawyer. It's then up to you - and dependant on the amount of money you have at risk - whether you go to a local back street cheap guy who speaks a little English badly (or none and you fancy your wife can acquire translation and negotiating skills ), a high street reputable (ish) tax accountant/lawyer who speaks reasonable English or a Thai tax specialist at one of the international accounting or law firms operating mostly in Bangkok.

Let's hope it is idle rumour and not part of a witch hunt to come.

I'm not a professional tax accountant, so I hope I have not made any bloomers. So don't slag me off, I'm only trying to be helpful, but do post any corrections and indicate your knowledge source.

Edited November 2, 2011 by SantiSuk

[brianmarinus]

Here we go!

http://bangkok.angloinfo.com/countries/thailand/intax.asp#resident-

[ginooooo]

Here we go!

http://bangkok.anglo...ax.asp#resident-

Interesting info. Sure glad that they do not tax income from retired pensions and social security.

[TPI]

Here we go!

http://bangkok.anglo...ax.asp#resident-

Interesting info. Sure glad that they do not tax income from retired pensions and social security.

I think if you read it again it will come under the heading of "other", the only solution IMMHO is to transfer your pension from your personal account in your home country into your Thai account. This gives a scenario of sending money to yourself regardless of the source in your home country! :jap:

[MJCM]

I hope indeed that this is a scam, but if not then a lot of people (including myself) would be fc_ked. I would pay them what I owe them, but would refrain from sending anymore money to my own account. But I'm just going to use my wife's account.

But again.it might be just a rumor and or a scam, just wait and see what happens.

[svenivan]

Everyone knows the OP, before he was writing in the middle of the night and after a while noone responded.

So he posted his Goodbye and with tears in his eyes.

And now he is back to get some attention, maybe starting drinking earlier in the day.

Of course this is all nonsense!

We all pay tax in our own country, if someone is working in Thailand he might be paying tax in Thailand.

So just relax, maybe send SunholidaySun a Private Message and tell that you love him and he will be happy.

[skippybangkok]

Well, they tried to scam me once in BKK, basically a error in the company report on my taxes (company issue, not mine). They were getting real upset, cause they wanted to meet/talk to me, but only got my PA, and then my accountant who had a legal proxy to answer things on my behalf.

They wait for many years, close to the statute of limitations, so there is lots of interest for all those backlog years........ boy were they trying their utmost to cut me a sweet deal. Told my accountant they would only talk to me, and she was quite aggressive and laid out the law of the land to them.

Lots of threats, but they went quiet.

Get a good accountant, authorize them...... problem solved.

[sceadugenga]

Everyone knows the OP, before he was writing in the middle of the night and after a while noone responded.

So he posted his Goodbye and with tears in his eyes.

And now he is back to get some attention, maybe starting drinking earlier in the day.

Of course this is all nonsense!

We all pay tax in our own country, if someone is working in Thailand he might be paying tax in Thailand.

So just relax, maybe send SunholidaySun a Private Message and tell that you love him and he will be happy.

I was waiting for someone to say that.

[Joel Barlow]

wondering how kind you all'll be on the Page of Remembrance about one of our egotistic bar-drunks about to die or cancer (etc),

and currently getting ready to be shipped back to his home country (using 7 seats, it's rumored)

[sunholidaysun1]

Everyone knows the OP, before he was writing in the middle of the night and after a while noone responded.

So he posted his Goodbye and with tears in his eyes.

And now he is back to get some attention, maybe starting drinking earlier in the day.

Of course this is all nonsense!

We all pay tax in our own country, if someone is working in Thailand he might be paying tax in Thailand.

So just relax, maybe send SunholidaySun a Private Message and tell that you love him and he will be happy.

With comments like that Sven, its no wonder some of us get peeeeed off , especially when we are only trying to find out the facts from conversations had. As it happens, the reason for the Tax man to visit , IS unpaid business tax , so we can all relax.

No need for the insults !!

[sunholidaysun1]

wondering how kind you all'll be on the Page of Remembrance about one of our egotistic bar-drunks about to die or cancer (etc),

and currently getting ready to be shipped back to his home country (using 7 seats, it's rumored)

Off Topic but you are correct to say about Dirk , one of the residents here for more years than me. Sadly he has been

told he has lung cancer of both lungs and there isnt much time left for him here on the planet.

Dirks brother has arrived from Germany but i dont think there is much hope of flying him home with his lungs in the condition they are in .

Dirk is only 51 years old and has been a friend to me since I arrived. I have not seen him for the past 2 weeks as no visitors are being allowed to see Dirk ( brothers orders )

I can only wish him well but from the last time I was with him his skeleton frame is all that is left of the man I knew, he is losing the battle rapidly and doesnt comprehend where he is etc .

May god be with you my friend.

[sceadugenga]

I think we need to look at the causes behind a lot of the people who become Thailand bar drunks before we condemn them, I've been down that road myself and known many who were very decent people and often the bars of this country were the only happiness they had known for a long time.

My attitude is that they hurt only themselves and if people want to contribute to their funeral or add a little comfort to their manner of dying then that's no ones business but their own.

[pomchop]

I hope indeed that this is a scam, but if not then a lot of people (including myself) would be fc_ked. I would pay them what I owe them, but would refrain from sending anymore money to my own account. But I'm just going to use my wife's account.

But again.it might be just a rumor and or a scam, just wait and see what happens.

In the overall scope of things i can think of to worry about having some thai tax men show up at my house in CR demanding 20% of my money is right down very close to the bottom. I am more worried about having some former Bangkok or Pattaya friend of the evening show up with a five year old kid that looks a lot like me and wants to go to Harvard on my nickle. Now there is a thought that might keep you up at night.

I guess anything is possible but my guess is all this tax talk is much ado about nothing.

[sunholidaysun1]

I guess anything is possible but my guess is all this tax talk is much ado about nothing.

It is about something, unpaid TAX. Those who have businesses here from bars to coffee shops etc have to pay tax. Those who have failed to pay the tax are now being rounded up and ordered to pay.

Putting the warning out to let people know is always a good thing , even if to start with it is only a rumour. Generally there is no smoke without fire and now that we have the facts , those who have businesses and have paid no tax will be hunted down as it is currently happening. Some are being hounded for several years worth of back taxes . Get your ATM cards ready, they will be on your doorstep later.

[svenivan]

With comments like that Sven, its no wonder some of us get peeeeed off , especially when we are only trying to find out the facts from conversations had. As it happens, the reason for the Tax man to visit , IS unpaid business tax , so we can all relax.

No need for the insults !!

If we all should post all rumours we hear in so called discussions in bars and other places the forum should only fill up with CRAPS.

But luckily most people don't post until they are sober and then they can see and understand the difference between a chicken and a feather, so they don't post.

[klikster]

Rumour last night in town was that several foreigners living here in Chiang Rai have been visited by 3 local tax officers. They have demanded back taxes for transfering money from the home country to Thailand ?

It is about something, unpaid TAX. Those who have businesses here from bars to coffee shops etc have to pay tax. Those who have failed to pay the tax are now being rounded up and ordered to pay.

Okay, which is it?

BTW:

The other possible reason are those of us who have businesses here and have failed to submit the yearly tax returns on monnies earned from the business in Thailand

Do you have a business in Thailand?

Work permit?

Delinquent taxes?

If so, I can understand the reason for your panic.

Recommendation: Man Up

[sceadugenga]

This is a lot different from your original warning that they were alleging tax had to be paid on money transferred to Thailand for any reason.

Of course business people have to pay tax, as they do in any country.

[pomchop]

This is a lot different from your original warning that they were alleging tax had to be paid on money transferred to Thailand for any reason.

Of course business people have to pay tax, as they do in any country.

So it seems that since i don't own or run any biz in Thailand I can now return to my NOT WORRYING mode as the sky is not likely to fall upon my head...at least not today.

[transam]

This is a lot different from your original warning that they were alleging tax had to be paid on money transferred to Thailand for any reason.

Of course business people have to pay tax, as they do in any country.

+1, and scare mongering here really is a no-no.

FACTS.