Gold shops warned to have proper accounting books or face money laundering charges



BANGKOK: -- Gold shops which have revenues over 10 million baht a year and do not have proper accounting books will face money laundering charge and have their assets frozen under a new tax law being mulled by the Revenue Department.

Revenue Department director-general Prasong Poonthanet said that out of some 7,000 gold shops, 75 of them which are major operators have proper accounting books.

Combined gold turnover of all the gold shops in the country are estimated at between 400-500 billion baht annually but only between 200-300 billion baht are properly taxed, said Mr Prasong, adding that when the E-payment system is applied as of June 1 the Revenue Department will be able to keep tap on the turnover and revenues of gold shops.

He recommended all gold shops to register as business entities which will make them pay less income tax than paying personal income tax.

Mr Chitti Tangsitpakdee, president of the Association of Gold Traders, said that most gold shop operators were concerned that they would pay more income taxes if they are registered as legal entities.

“But if the Revenue Department assures that they will pay less tax, then gold shop operators will be willing to cooperate,” said Mr Chitti.

Global gold prices remain volatile and steadily drop in anticipation that the US Federal Reserves may increase interest rate at its next meeting. Gold price is expected to register US$1,300 per ounce and domestic gold price is expected to reach 22,000 baht per baht weight if the baht currency weakens to 36 baht against a US dollar.

Source: http://englishnews.thaipbs.or.th/content/164209


-- Thai PBS 2016-05-23

Thai always have to be different from the rest of the world. Their preposterous lower % of gold and this very preposterous pricing by "baht" weight. Ludicrous.

Thai always have to be different from the rest of the world. Their preposterous lower % of gold and this very preposterous pricing by "baht" weight. Ludicrous.

I thought the Thai gold had a higher percentage of gold in it.

But in the goldworld they use those metal analyzers who are very accurate, what is the percentage of pure gold if measured Thai gold from a local goldshop?

Thai always have to be different from the rest of the world. Their preposterous lower % of gold and this very preposterous pricing by "baht" weight. Ludicrous.

Minimum 96.3% in jewellery is low? It is higher than anywhere else!

This is why it is seen as security here, you can sell for almost what you paid for it, in fact if gold prices change it is possible to make a profit.

We are in Thailand and they use Baht, so what?

Gold shops which have revenues over 10 million baht a year and do not have proper accounting books will face money laundering charge

So does that mean that gold shops which have revenues under 10 million baht a year don't need to have proper accounting books?

Quick ... make sure reported revenues are not over 10 million baht a year! And that can be done easily by money laundering.

Gold bullion is money. Exchanging cash for gold is not in itself laundering. However the big question remains: will gold shops be required to obtain customer ID and records of their gold bullion transactions (10 baht bars, etc) in order to comply with accounting regulations?

Right now it is possible to walk into many a gold shop, hand over cash and walk out with gold bars, which can be redeemed (at the same gold shop) at the advertised price at any time in the future. For the customer there are no personal records, no income declaration on personal tax returns.

I wonder, is gold, or goldbar in Thailand free of VAT?

Thai always have to be different from the rest of the world. Their preposterous lower % of gold and this very preposterous pricing by "baht" weight. Ludicrous.

Minimum 96.3% in jewellery is low? It is higher than anywhere else!

This is why it is seen as security here, you can sell for almost what you paid for it, in fact if gold prices change it is possible to make a profit.

We are in Thailand and they use Baht, so what?

I think ( I can be wrong ) gold sold in Vietnam has a higher % than gold sold in Thailand;

Thailand, 23 carats;

Vietnam 24 carats ( 99,..% pure ) ;

Gold sold in Vietnam is mat, not bright and soft, not hard .

God in Heaven. Someone stop these bozos threatening. If the laws exist, then enforce them, if they don't then write them and then enforce them, but for the love of God stop holding press conferences just to threaten people and make yourselves seem important.

The most popular English word in Thailand is apparently 'punish' or 'punishment',

It's suggestive of a mental health problem I think.

Winnie

Edited May 23, 201610 yr by Winniedapu

I wonder, is gold, or goldbar in Thailand free of VAT?

Yes it is. And unlike silver BTW.

Thai always have to be different from the rest of the world. Their preposterous lower % of gold and this very preposterous pricing by "baht" weight. Ludicrous.

Minimum 96.3% in jewellery is low? It is higher than anywhere else!

This is why it is seen as security here, you can sell for almost what you paid for it, in fact if gold prices change it is possible to make a profit.

We are in Thailand and they use Baht, so what?

I think ( I can be wrong ) gold sold in Vietnam has a higher % than gold sold in Thailand;

Thailand, 23 carats;

Vietnam 24 carats ( 99,..% pure ) ;

Gold sold in Vietnam is mat, not bright and soft, not hard .

You are not wrong only, slightly off.

Actually only items sold as pure gold, they have to be 99.9% pure in Vietnam.

Most isn't, everything from 86% downwards is normal.

Thai always have to be different from the rest of the world. Their preposterous lower % of gold and this very preposterous pricing by "baht" weight. Ludicrous.

Minimum 96.3% in jewellery is low? It is higher than anywhere else!

This is why it is seen as security here, you can sell for almost what you paid for it, in fact if gold prices change it is possible to make a profit.

We are in Thailand and they use Baht, so what?

Here baht is a unit for the weight, I think it is 15,6 gr or half an ounce

Thai always have to be different from the rest of the world. Their preposterous lower % of gold and this very preposterous pricing by "baht" weight. Ludicrous.

Minimum 96.3% in jewellery is low? It is higher than anywhere else!

This is why it is seen as security here, you can sell for almost what you paid for it, in fact if gold prices change it is possible to make a profit.

We are in Thailand and they use Baht, so what?

Here baht is a unit for the weight, I think it is 15,6 gr or half an ounce

1 Baht is equal to 15.244 grams in raw bullion form, or 15.16 grams when it sold as jewelry.

Thai gold is also measured in "Salung" which is a smaller unit when compared with Baht, where 1 salung is a quarter baht (0.25 baht) or 3.81 grams.