Thai Finance Ministry mulls tax amnesty for SMEs

[webfact]

Finance Ministry mulls tax amnesty for SMEs to encourage them to enter tax system



BANGKOK: -- The Finance Ministry is considering tax amnesty to a large number of small- and medium-sized enterprises so as to encourage them to enter the tax system, to prepare one single accounting book and to properly pay taxes.

Finance Minister Apisak Tantiworapong said that there are about 1.9 million SMEs but only 500,000 of them have entered the tax system.

However, he said that SMEs which would be entitled to tax amnesty would be required to meet one main condition – that is they must, from now on, pay taxes properly without resort to tax evasions by means of preparing two account books – one for themselves and the other to be presented to revenue officials for taxation.

The minister said further he would seek cooperation from the Bank of Thailand and the Thai Bankers Association to instruct all commercial banks to require SMEs which apply for loans or credits from the banks to produce proper account books.

He went on saying that the government would set up an infrastructure fund worth about 1.9 trillion baht to raise fund from the public and financial institutions for the implementation of infrastructure mega projects.

Source: http://englishnews.thaipbs.or.th/finance-ministry-mulls-tax-amnesty-for-smes-to-encourage-them-to-enter-tax-system


-- Thai PBS 2015-09-28

[clockman]

Just another Thai trait. No transparency and no accountability!

[worgeordie]

It would be cheaper to employ more tax men,put them on commission,

say 10%, (not tax free),if people fiddle taxes they have to pay,having

an amnesty sets a bad precedent.

regards worgeordie

[Pib]

If they haven't entered the tax system already simply because they don't want to pay taxes in the past, now, or in the future, why would an amnesty encourage them to join the system and start paying taxes?

[Yme]

It would be cheaper to employ more tax men,put them on commission,

say 10%, (not tax free),if people fiddle taxes they have to pay,having

an amnesty sets a bad precedent.

regards worgeordie

IMHO you are wrong. A similar "reward system" operates now for Customs. I think the officer gets 50%. It's led to what is a totally Faarked up import system with inspectors spending more time looking for errors than clearing good.

An amnesty with mandatory minimum penalties for anyone found after the amnesty ends is good governance. Reward systems encourage corrupt practices, or subject to stupidity and abstinence. Hence Toyota halting production of the Prius.

[FangFerang]

Te definition of an SME in Thailand is based solely on employee numbers. High return businesses, such as the Lottery Tigers, are considered SMEs if under 100 employees.

This amnesty only helps very successful businessmen, and only the few who are willing to pay taxes.

[StefanBBK]

Many businesses are too small. Think of little mom and pop food shops. Or the flower lady at the market. Surely they all should charge vat and account for it. Also pay tax on their profits. I am willing to say 99% don't.

[Valentine]

It is a start trying to get more into the tax system. They need to increase revenue but why not try to get all the large corporations to pay taxes fairly instead of allowing them to cheat. It is always the little guy who has to shoulder the responsibility in this country whether it be taxes or doing time while the big bosses remain free.

[Srikcir]

"SMEs which would be entitled to tax amnesty would be required to meet one main condition – that is they must, from now on, pay taxes"

The government has a 60% noncompliance and no back taxes will be required for the amnesty? I can see waiving penalties, even interst due on outstanding tax liabilities. But to also waive unpaid back taxes just encourages future tax abuses. It's no surprise that Thailand has the lowest tax collection rate in the world and that hobbles the government's ability to finance critical economic and social programs.