Government auditors accuse Pattaya hotels of dodging taxes, order crackdown

PATTAYA:--Thailand’s Office of the Auditor General has told Chonburi authorities to crack down on Pattaya hotels, citing a substantial shortfall in expected tax revenue.

In a document sent to the Chonburi Provincial Administrative Organization, the OAG accused many Pattaya hotels of dodging taxes altogether, saying the region’s tax revenue pales significantly compared to other tourist destinations in the kingdom.

PAO President Wittaya Kunplome told an Aug. 8 meeting of the Thai Hotels Association Eastern Region that only 19 million baht in taxes were collected, substantially less than areas like Phuket, Bangkok or Koh Samui.

“I sympathize and understand that our hotels are having a difficult time with their businesses. But this year, the OAG has sent a letter stating that too little in taxes has been collected,” Wittaya told the meeting at the Royal Cliff Beach Resort. “I will discuss this with the provincial government council and inform the association of the new tax rate later.

Full story:http://www.pattayamail.com/localnews/government-auditors-accuse-pattaya-hotels-of-dodging-taxes-order-crackdown-29501

-- Pattaya Mail 2013-08-23

And when they have finished with the hotels tax avoidance, maybe they will have a look at the 1000's of bars around Pattaya, I wonder how much they collect per year in taxes from them...And then move onto the BIB and start taxing them..

I once read how many of the population of Thailand actually pay any tax and the figure was a very small amount of the population..

Around 2.5 % to 3%..

If they taxed the bar girls and they were honest and paid how much would that rake in , in taxes, damn my thoughts it will never happen..

Edited August 23, 201312 yr by MB1

resolved!

Wittaya: “I sympathize and understand that our hotels are having a difficult time with their businesses.”

How dare you to doubt the propaganda of the TAT?

Anybody notice how many new condos being built? I suspect many hotels are losing revenue.

“I sympathize and understand that our hotels are having a difficult time with their businesses."

Emmmm, Thailand had its highest number of visitors ever this year.......you statement should have stated....

Pay what you owe you bent bunch of rip off <deleted>

Thailand - HUB of useless crackdowns !

Hahaha, it's the hotels ofcourse.

When the little seperate Pattaya office of the POA (soi 69 off Sukhumvit) calls hotel management over for "negotiations", they themselves propose a small "donation", after which the hotels pay a negotiated small fixed monthly amount, instead of the monthly detailed statement of actual room occupation/revenue on which 3% hotel tax is due.

And one wonders why tax revenue is low! All the governement employees drive nice cars though, guess how they can afford the monthly installments almost equalling their complete salary!

Trying to do it official and they start arguing over your declared occupancy end you end up paying more then what you should. Until the "negotiations" anyway...

Tax revenues can't be too bad if they call meetings at the Royal Cliff Hotel. No spare space at Pattaya City Hall?

Believe author needs to check dictionary. Appropriate word would be "shakedown" not "crackdown". They often get those words mixed up here.

only 19 million baht in taxes were collected

Wow. I would say the majority of businesses are not paying any tax!

EDIT : Actually the article is kind of vague. I can't tell if the 19 Mil was total tax revenue or just the revenue from the hotels. Also it doesn't list a time frame for that revenue. Quarterly? Annual?

Edited August 23, 201312 yr by IsaanUSA

This year , I have had 3 visits from the revenue department .

All 3 were during low season and all 3 times they were very disappointed that hotel was half empty and rooms sold at half price .

Have they considered that may be there is less tax revenue because there are less tourists ?!

"Crackdown" must be the English translation of some Thai word which doesn't actually mean quite the same thing...