Thai inheritance tax bill sails through the first reading

[rickirs]

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not a good move for the Thai economy. This will drive away rich people, entrepreneurs and will become an admin burden for the government.

This article mentions Canada, Australia, New Zealand and Norway who have gotten rid of the inheritance tax but forgets to mention that both Singapore and Hong Kong have gotten rid of it as well. And in Europe Switzerland has gotten rid of it as well. And this is main driver for rich people to determine their tax domicile.

Rich Thai people can move their domicile at a heartbeat to Singapore or Hong Kong and avoid paying inheritance tax that way.

And from a tax control point of view, tax authorities can only control and levy inheritance tax effectively on land in Thailand. Other assets like securities, mutual funds, cash savings, gold, diamonds, art, property outside Thailand etc etc they cannot control. Also it is interesting that many Thais have transferred their properties and land to their children before this law and the gift law will come into effect.

I hope the PM gets some better advisors on matters relating to the economy. I understand that they are desperate to find more tax revenue but really they should look at making the government more effective rather than trying to raise more money.

The article also fails to mention that those countries that repealed inheritance tax was only at the national level with the tax being available at the local level and other additional taxes were substituted, such as higher capital gains tax. Most countries want to maintain revenue-neutral legislation so when a tax is repealed, the loss of revenues must be offset by some other source of funding to balance the budget or the budget will fall into deficit spending.

[BANGKOK WOLF]

Taxing the dead for 25% GPD just feels wrong.

Why not tax on earnings?

Where does the money go?

There seems to be a lot of very rich people here.

What do they pay in tax?

[Robby nz]

This is a great bill for the people of Thailand and one that so many western govts do not have the balls to deliver.

Should be noted that previous Govts in this country haven't wanted anything t do with it either.

Wonder why, could it be that it would affect them and their patrons more than ordinary people ?

[baboon]

Taxing the dead for 25% GPD just feels wrong.

Brings to mind an old joke:

What is the difference between the taxman and a prostitute?

A prostitute stops screwing you after you are dead.

No?