webfact Posted October 7, 2014 Share Posted October 7, 2014 INHERITANCE TAXInheritance tax 'not enough'Sirivish ToomgumThe NationBandidBANGKOK: -- The proposed inheritance tax might not be an effective enough tool to narrow income disparity, so other measures are needed if the government wants to ensure a more equitable distribution of wealth in society, a seminar was told.Bandid Nijathaworn, president and chief executive officer of the Thai Institute of Directors Association, said the tax should be implemented but it alone might not be enough to bridge the income gap. Other taxes and fiscal measures are also needed to make it much more effective.If the government really wants to use the inheritance tax as an income-levelling tool, the initial minimal rate should be lower than the proposed 10 per cent.The threshold of net asset value that will be subject to tax should be higher than the proposed Bt50 million, he said. It should be raised to about Bt100 million so as not to put too much of a burden on middle-income people.In parallel, personal income-tax rates should be eased to encourage people to work and to compensate those subjected to paying inheritance tax in a balanced way, he added.The seminar on the inheritance tax was hosted by the Sasin Centre for Sustainability, Sasin Alumni Association, Social Venture Network and Net Impact Bangkok Professional Chapter.The draft levies a tax of 10 per cent on estates of more than Bt50 million.In economic terms, reducing the disparity via tax tools would not be successful if the economic structure still favours the disparity, Bandid said. The government should focus on fiscal policy by spending to create opportunities for people to access jobs and loans. This would help them build wealth and narrow income disparity.In practice, collecting this tax might not be so easy, since some wealthy people, who are the real target, could afford to have long-term plans to avoid tax, resulting in ineffective revenue collection and the failure to narrow disparity.The inheritance tax might dilute the inspiration of young entrepreneurs to accumulate assets and these people are not the real target of the tax, he added.Chermsak Pinthong, a member of the National Reform Council, wondered if this tax was worth having, noting the possible high cost of collection and management. It also might not ultimately help narrow disparity and it might result in double taxation.Other tax tools and measures need to be implemented along with such a tax to ensure that the government could reduce disparity.Sirikanya Tansakun, research manager for the Thailand Future Foundation, said that according to the foundation’s survey of 45 economies, only 13 have an inheritance tax at present, including the United Kingdom, the United States, Japan and the Philippines.Of the 45 jurisdictions surveyed, 12 used to have an inheritance tax but have revoked it, such as Canada, Russia, Norway, Hong Kong and Singapore. Some of them cancelled the tax because of the high cost of managing collections. Norway scrapped the tax to reduce the burden of people in transferring family businesses to younger generations. Canada has replaced it with a capital-gains tax.Imposing an inheritance tax might change people's behaviour by driving them to move assets out of the country or buy other assets that are not subject to the tax.The inheritance tax alone might not be enough to narrow disparity on a sustainable basis, Sirikanya said. The government should employ other tools too, such as spending to create equal opportunities for people.Source: http://www.nationmultimedia.com/business/Inheritance-tax-not-enough-30244981.html-- The Nation 2014-10-08 Link to comment Share on other sites More sharing options...
Popular Post Thai at Heart Posted October 7, 2014 Popular Post Share Posted October 7, 2014 Bt50 million, he said. It should be raised to about Bt100 million so as not to put too much of a burden on middle-income people. Just to show how in touch he is with reality of course???? 5 Link to comment Share on other sites More sharing options...
Suriya4 Posted October 7, 2014 Share Posted October 7, 2014 Army generals should be exampted from tax as their income is very low, army wife don't work, and they serves national interest and protect you and me from foreign invasion. 2 Link to comment Share on other sites More sharing options...
halloween Posted October 8, 2014 Share Posted October 8, 2014 Bandid - this tax is unfair, it affects ME. Link to comment Share on other sites More sharing options...
englishoak Posted October 8, 2014 Share Posted October 8, 2014 100 million is ooo £1.8 million ... middle income ? Link to comment Share on other sites More sharing options...
Tatsujin Posted October 8, 2014 Share Posted October 8, 2014 Just goes to show what a bubble these people live in . . . 50-100 Million Baht is NOT middle class income . . . Link to comment Share on other sites More sharing options...
kurnell Posted October 8, 2014 Share Posted October 8, 2014 As if the wealthy are ever going to pay inheritance tax 1 Link to comment Share on other sites More sharing options...
eeeya Posted October 8, 2014 Share Posted October 8, 2014 Middle income and driving a ferrari. The land of milk and honey Link to comment Share on other sites More sharing options...
fab4 Posted October 8, 2014 Share Posted October 8, 2014 Bandid - this tax is unfair, it affects ME. Why would it affect Myalgic Encephalomyelitis? Oh I see, that was just you telling the forum how much you're worth in monetary terms. OK, that's interesting, thanks . Link to comment Share on other sites More sharing options...
choochoo Posted October 8, 2014 Share Posted October 8, 2014 one tenth of 1% control 46% of thailands wealth. And people in ameerika complain.............lol. Anyways. How does taking the rich's money grow the poor issans folks income? You need the rich to pull up the poor but that would mean lees need for silly socialist government BIG wigs. NEVER gonna happen! 1 Link to comment Share on other sites More sharing options...
halloween Posted October 8, 2014 Share Posted October 8, 2014 (edited) Bandid - this tax is unfair, it affects ME. Why would it affect Myalgic Encephalomyelitis? Oh I see, that was just you telling the forum how much you're worth in monetary terms. OK, that's interesting, thanks . Deliberately obtuse? I drive a taxi to supplement my income, and i doubt the inheritance tax will apply to non-citizens. Bandid is the one complaining about the tax threshold. Do your friends tire of explaining jokes to you? Making the generous assumption that you have friends. Edited October 8, 2014 by halloween Link to comment Share on other sites More sharing options...
Pib Posted October 8, 2014 Share Posted October 8, 2014 More taxes, new taxes, more taxes, new taxes...that's always the politician's answer. Taxes are a slippery slope...become addictive. 1 Link to comment Share on other sites More sharing options...
rickirs Posted October 8, 2014 Share Posted October 8, 2014 Everything Bandid Nijathaworn proposes would effectivelly neutralize the inheritance tax - and maybe that's the point. He obviously doesn't want to see it happen - maybe a conflict of interest? Note: The US federal government does NOT have an inheritance tax. It has an ESTATE TAX and a GIFT TAX that affects wealthy Americans not matter their source of wealth. Some US States also have either estate or inheritance taxes. These two taxes are low cost revenue earners for the government. Link to comment Share on other sites More sharing options...
Arkady Posted October 8, 2014 Share Posted October 8, 2014 Apart from issues like re-taxing assets that may have already been taxed which should probably regarded as 'soft' issues, there are a couple of 'hard' issues. 1. The government has refused to provide estimates how much tax can be raised through inheritance tax, how much it would cost to collect it, or what it what do with the increment net revenue. IHT will need a whole new structure of staff with the training and ability to appraise estates. The wealthy put assets into private companies that are difficult to value. No only will this tax be very expensive to collect, it provides huge opportunities for extortion by RD officials. Net tax collected will almost certainly end up being disappointing. 2. IHT will definitely encourage flight of capital. It is too easy for wealthy families who have overseas business dealings to get large chunks of their wealth offshore, not to mention corrupt politicians and civil servants. They can also easily re-invest this cash in Thai shares anonymously through foreign custodians and in minority stakes in private companies. However, much of this capital will also be deployed overseas. IHT will increase net capital flight which will reduce the stock of capital in the Thai economy which will reduce the overall long term growth rate. Link to comment Share on other sites More sharing options...
cloudhopper Posted October 8, 2014 Share Posted October 8, 2014 Taxes are not about revenue for sovereigns that can print whatever they wish to spend. Taxes, along with their opposite subsidies, are about the redistribution of wealth in order to preserve the common peace and advance other social policies of the sovereign. 1 Link to comment Share on other sites More sharing options...
new2here Posted October 8, 2014 Share Posted October 8, 2014 I'm not fan of the inheritance tax, nor am I a fan of so-called wealth redistribution policies... That being said, to me, before I went down the road of any new tax like this, I would want to be reasonably sure that I have solid compliance with current tax policies in place.. That's things like income taxes, customs and duties, excise taxes, payroll, etc... Nobody likes taxes, but I suspect you'd get better buy-in if people were reasonably assured that everyone was paying what each person rightly owes under the current rules. Will it ever get to that point? No. Not by a long shot, but I do think that's the goal that the revenue/tax policy makers need to aim towards. Link to comment Share on other sites More sharing options...
choochoo Posted October 8, 2014 Share Posted October 8, 2014 Reduce the wealth of the rich while keeping the poor poor. Every politicians WET DREAM! Link to comment Share on other sites More sharing options...
Pib Posted October 8, 2014 Share Posted October 8, 2014 I'm not fan of the inheritance tax, nor am I a fan of so-called wealth redistribution policies... That being said, to me, before I went down the road of any new tax like this, I would want to be reasonably sure that I have solid compliance with current tax policies in place.. That's things like income taxes, customs and duties, excise taxes, payroll, etc... Nobody likes taxes, but I suspect you'd get better buy-in if people were reasonably assured that everyone was paying what each person rightly owes under the current rules. Will it ever get to that point? No. Not by a long shot, but I do think that's the goal that the revenue/tax policy makers need to aim towards. Since the Thai tax system relies heavily on VAT and excise taxes which affect everyone...and is a regressive system...if the govt tried to reduce the VAT and excise taxes I expect they would need to offset that revenue loss with more/higher personal income taxes which most people (voters) currently don't pay and would probably complain BIG TIME about destroying their happiness---therefore, that won't happen. Link to comment Share on other sites More sharing options...
Arkady Posted October 8, 2014 Share Posted October 8, 2014 Taxes are not about revenue for sovereigns that can print whatever they wish to spend. Taxes, along with their opposite subsidies, are about the redistribution of wealth in order to preserve the common peace and advance other social policies of the sovereign. 'Print whatever they want to spend'. Unlike the US which is attempting to follow your advice taking advantage of being the owner of the global reserve currency, Thailand has only a tiny currency and has to issue debt in foreign currency. Printing money would be a fast route to hyper inflation and economic collapse that would hit the poor hardest, as did the 1997 financial crisis. Link to comment Share on other sites More sharing options...
Popular Post xminator Posted October 8, 2014 Popular Post Share Posted October 8, 2014 1. Everyone should declare assets. 2. Set a % yearly tax on assets (one point something), also a lower limit that exclude the 90% with least assets from the tax. 3. Differentiate the tax. Minimum wage should not be enough to pay income tax. Low percent from minimum wage to double minimum wage, then a higher percent on amount from double to 10 times and then a nasty tax on income above 10 times minimum wage. The thing here is that to pay their assets tax, the rich elite have to get income that they also have to pay income tax on. Now what to use that money for? - Free education for at least 12 years. - Pensions. Thailands elders should have a minimum wage when they retire. It should not matter if they spent their lives under a tree drinking lao kao or worked 24 hours a day for 60 years. However a point system based on income tax should be used. But government should never pay more then 2x minimum wage to anyone. - Social benefits. Not everyone have luck in life. Some are born less fortunate. Others lose their luck later in life. Some like to call people that receive benefits lazy, but still it should be a safety net there for anyone that can't work, based on trust not paranoia and jealousy. 3 Link to comment Share on other sites More sharing options...
fish fingers Posted October 8, 2014 Share Posted October 8, 2014 It stinks abit Thailand is going the same way as UK, the super rich will be able to circumnavigate this tax whilst the honest ones who worked hard get <deleted> Link to comment Share on other sites More sharing options...
cloudhopper Posted October 8, 2014 Share Posted October 8, 2014 Taxes are not about revenue for sovereigns that can print whatever they wish to spend. Taxes, along with their opposite subsidies, are about the redistribution of wealth in order to preserve the common peace and advance other social policies of the sovereign. 'Print whatever they want to spend'. Unlike the US which is attempting to follow your advice taking advantage of being the owner of the global reserve currency, Thailand has only a tiny currency and has to issue debt in foreign currency. Printing money would be a fast route to hyper inflation and economic collapse that would hit the poor hardest, as did the 1997 financial crisis. There was no advice dispensed in my post and it has nothing whatever to do with the US or a reserve currency. This is entirely a domestic taxation issue. All the money ever taxed here in Thailand was first printed and spent into existence by Thailand. Hyperinflation will only occur if too much money is created for the size of the economy causing a loss of faith in the currency. Thailand has been deficit spending since 2008, devaluing their currency more or less in lock step with the rest of the world since the last global financial crisis. Link to comment Share on other sites More sharing options...
heybruce Posted October 8, 2014 Share Posted October 8, 2014 "The inheritance tax might dilute the inspiration of young entrepreneurs to accumulate assets and these people are not the real target of the tax, he added." I was going to skip over this article until I saw that absurdity. How many young entrepreneurs think "Gee, I could work hard, earn a lot of money, build a business to be proud of and live really well, but if I can only leave 90% of my wealth to my family when I die then I won't bother."? 2 Link to comment Share on other sites More sharing options...
Ozziepat Posted October 8, 2014 Share Posted October 8, 2014 1. Aren't all wealth taxes double taxation? 2. Is "reducing disparity," AKA legislating equal outcomes, a democratic government function? 3. Are government handouts "income?" Inquiring minds... Link to comment Share on other sites More sharing options...
AleG Posted October 8, 2014 Share Posted October 8, 2014 1. Aren't all wealth taxes double taxation? 2. Is "reducing disparity," AKA legislating equal outcomes, a democratic government function? 3. Are government handouts "income?" Inquiring minds... 1. Yes, even triple and quadruple... as in all other taxes, when you buy food you pay VAT, the cook paid VAT on the ingredients that went into that food, the logistics involved in bringing the food to the cook also paid taxes, the farmer that grew the food had to paid taxes in the process of producing that food and so on and so forth; like turtles, it's taxes all the way down. Why should Inheritance taxes be an exception? 2. Yes it is, by social agreement from the majority of people, slow Democratic evolution if you will; keep in mind all this byzantine laws and regulations we live with today came as a consequence of something, for example people getting very peeved at robber barons accumulating so much money (and consequently power) that it was either we get something back from those bastards by taxation or it's torch and pitchforks time. 3. Yes, it's income, you get money, it's income. Is it earned or deserved? that's the important question. Link to comment Share on other sites More sharing options...
chotthee Posted October 8, 2014 Share Posted October 8, 2014 Some people in Thailand is exempted from tax, regardless how much he stole from the people. His name start with a T. Link to comment Share on other sites More sharing options...
llz Posted October 8, 2014 Share Posted October 8, 2014 (edited) 1. Aren't all wealth taxes double taxation? Of course NO. Wealth often comes from assets you have inherited of, revenue of assets you have inherited of, and appreciation of real estate or shares you have bought or inherited of. In a country where there is no inheritance tax nor capital gains tax like Thailand, no fear of double taxation for the owner - at least for the main part of their wealth. Taxing wealth is also the only way for the state to cash in on a little part of wealth which has been hoarded through illegal revenues (corruption, tax evasion, crime, come to mind). Then all depends on the basis, the tax rate, and the exemption level to decide if such a tax is both efficient and tolerable. Edited October 8, 2014 by llz Link to comment Share on other sites More sharing options...
belg Posted October 10, 2014 Share Posted October 10, 2014 robin hood democrazy, does not work in the real world steal from the middle class to fill their own pockets, ... look at the politicians in your own country, how they fill their pockets, golden parachutes, full pension plans after just one term, cummulation of jobs, board of directors meeting at 1000 or 10.000 euro per meeting Link to comment Share on other sites More sharing options...
kieran2698 Posted October 10, 2014 Share Posted October 10, 2014 Army generals should be exampted from tax as their income is very low, army wife don't work, and they serves national interest and protect you and me from foreign invasion. Why generals? Why the highest paid in the army? Many people serve national interests, what about teachers or nurses or all the other civil servants, half a million of whom are paid the minimum wage despite having a degree. The generals have it easy, they have a decent wage, housing, schooling, health care and a pension like no other. And by the way, Thailand is in the UN, that is what protects Thailand from foreign invasion. Link to comment Share on other sites More sharing options...
kieran2698 Posted October 10, 2014 Share Posted October 10, 2014 Army generals should be exampted from tax as their income is very low, army wife don't work, and they serves national interest and protect you and me from foreign invasion. Why generals? Why the highest paid in the army? Many people serve national interests, what about teachers or nurses or all the other civil servants, half a million of whom are paid the minimum wage despite having a degree. The generals have it easy, they have a decent wage, housing, schooling, health care and a pension like no other. And by the way, Thailand is in the UN, that is what protects Thailand from foreign invasion. Link to comment Share on other sites More sharing options...
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