PM orders tax law overhaul

[rooster59]

PM orders tax law overhaul

By THE NATION

 

 

Key goal will be simpler system, and to reduce discretion of revenue dept head.

 

PRIME MINISTER Prayut Chan-o-cha has ordered Finance Minister Apisak Tantivorawong to overhaul the Revenue Code which has been in force since the late 1930s, an informed source said.

 

Prayut made the move during Tuesday’s Cabinet meeting as members pondered how to collect back taxes from former prime minister Thaksin Shinawatra.

 

The Finance Ministry is expected to begin the task next week by consulting with the National Legislative Assembly’s whip Somchai Sawaengkarn and the PM’s Office Minister Suvit Maesincee, said the source. 

 

The committee will then set up a draft bill which will be sent to the Cabinet and State Council for vetting. If it goes as planned, the bill will then be submitted for debate in Parliament. 

 

Prayut wants it to become law during his term of office, according to the source. 

 

The key points in the overhaul of the Revenue Code include making it simple, limiting tax officials’ discretionary power, reviewing tax allowances and tax assessment deadlines.

 

“The principle goal is simplicity, so we have to make our tax law achieve this goal,” said the source. 

 

“The income tax assessment deadlines or statute of limitations should also be consistent with deadlines of tariffs and excise laws which have already been reviewed recently”, the source said. However, it will not change personal and corporate income tax rates nor change the VAT rate, the source added. 

 

Over the last 30 years, there has been no big change in the Revenue Code, only minor amendments from time to time, said the source.

 

Economists and tax experts support the move, saying there are several loopholes in the current law. 

 

‘Inconsistent interpretations’

 

“The biggest issue of the current law is inconsistent interpretation |by involved parties, resulting in frustrated taxpayers and tax injustice,” said Sakon Varanyuwatana, dean of Thammasat University’s Faculty of Economics. Anthony Visate Loh, a tax expert at Deloitte Touche Tohmatsu Jaiyos Advisory Co, echoed Sakon’s view saying that the law gave too much discretionary power to tax officials, the director-general of the Revenue Department in particular.

 

“This makes the interpretation of tax law inconsistent. The successor of the director-general often interpreted the law differently from his predecessor, making tax collection practice inconsistent and it often hurt interests of businesses unfairly,” Anthony said.

 

In a related development, former prime minister Yingluck Shinawatra called for fair treatment when asked about government efforts to collect back taxes from her brother Thaksin. 

 

She said she did not understand why the government wanted to collect back taxes, although the Supreme Court had seized Thaksin’s assets worth Bt46 billion. 

 

“It seems to me that the government is purposely going after one party. I hope justice will prevail and the law must be applied to everyone equally. The law should not be used by one party against another party. People expect that those who enforce the law will do it without discrimination,” Yingluck said. 

 

Yingluck spoke out after Thaksin’s son Panthongtae asked what more the government wanted from the Shinawatra family after the legal case had been disposed of eight years ago.

 

Responding to the statement, Prayut said that Panthongtae should not complain about the government but should be prepared to speak in court. 

 

Prayut also said he had asked the Finance Ministry to investigate why tax officials did not collect taxes from Thaksin. “I want to make the tax issue clear for the public I do not target anyone in particular,” he said. 

 

In response to the Auditor-General demanding that tax officials collect back taxes from another 60 politicians, Prayut said the government will help officials to do their jobs.

 

Source: http://www.nationmultimedia.com/news/national/30309465

 

 

-- © Copyright The Nation 2017-03-18

[mtls2005]

Prayut wants it to become law during his term of office

 

 

How hard can that be?

 

Just get a wake-up call for your brother so he shows up for the NLA meeting.

 

I'm sure any new "law" will be equally applied. Just kidding.

[darksidedog]

Prayut made the move during Tuesday’s Cabinet meeting as members pondered how to collect back taxes from former prime minister Thaksin Shinawatra.

Prayut also said he had asked the Finance Ministry to investigate why tax officials did not collect taxes from Thaksin. “I want to make the tax issue clear for the public I do not target anyone in particular,” he said. 

Really? It seems that the proposed changes seem to target Thaksin pretty exclusively and came up while the issue of Thaksins tax was being discussed.

Someone should tell the PM not to put two contradictory statements together, as it seems obvious that this is targeting one person in particular.

[Reigntax]

Prayuth is one delusional sick sociopath.  Thaksin must have really interferred with the military's income stream for an individual to be so blatently targeting him and family.

 

One day the tide will turn and wont that be worth watching. Even better than the farcial military monk capture mission.

[robblok]

The key points in the overhaul of the Revenue Code include making it simple, limiting tax officials’ discretionary power, reviewing tax allowances and tax assessment deadlines.

 

 

This is a good thing to chance especially in a country like this where corruption is normal. 

[robblok]

2 hours ago, Reigntax said:

Prayuth is one delusional sick sociopath.  Thaksin must have really interferred with the military's income stream for an individual to be so blatently targeting him and family.

 

One day the tide will turn and wont that be worth watching. Even better than the farcial military monk capture mission.

I have no problem if they destroy each other,  corrupt taking out other corrupt.. good.. as long as people get punished.. first break Thaksin.. then let him break the army.. and hopefully they both stay broken.

[ezzra]

 

Any over whole of the tax code is a well over due step when 90% of the population

doesn't pay any tax to speak of or non at all, you have all those street level

sellers and merchants that make pretty decent living earning well above the

minimum threshold and still don't pay 1 baht tax and they're in the millions....

[Reigntax]

5 minutes ago, robblok said:

I have no problem if they destroy each other,  corrupt taking out other corrupt.. good.. as long as people get punished.. first break Thaksin.. then let him break the army.. and hopefully they both stay broken.

 

The army is broken and has been for a century. If it wasnt for their constant interference and acceptance of a two tier justice system specifically designed to protect the wealthy, people like Thaksin and all others similar would never have been voted into power.

 

The only readon Thaksin was popular was because everyone before him only ever represented the elites and were deludedinto thinking the status quo would remain.

 

There has never been a genuine attempt to stamp out corruption, only to reduce the benefits of the opposition by all political opponents. The entire judicial system is a basket case from the RTP to the very top and especially many of the laws under which the system operates.

 

As far as i can see it works exactly as it was intended to and the legislators, their associates and friends, daily reap the benefits of their actions.

 

 

[robblok]

14 minutes ago, Reigntax said:

 

The army is broken and has been for a century. If it wasnt for their constant interference and acceptance of a two tier justice system specifically designed to protect the wealthy, people like Thaksin and all others similar would never have been voted into power.

 

The only readon Thaksin was popular was because everyone before him only ever represented the elites and were deludedinto thinking the status quo would remain.

 

There has never been a genuine attempt to stamp out corruption, only to reduce the benefits of the opposition by all political opponents. The entire judicial system is a basket case from the RTP to the very top and especially many of the laws under which the system operates.

 

As far as i can see it works exactly as it was intended to and the legislators, their associates and friends, daily reap the benefits of their actions.

 

 

Oh i agree.. only thing you and I dont agree on is that i rather have some punished then none.. the feuding at least brings some to justice.. and when the power shifts..the other side is brought to justice.. Far from perfect but the best that can be done.

[candide]

40 minutes ago, robblok said:

Oh i agree.. only thing you and I dont agree on is that i rather have some punished then none.. the feuding at least brings some to justice.. and when the power shifts..the other side is brought to justice.. Far from perfect but the best that can be done.

Come on, no government will do anything against the army for fear of waking up one day with tanks in one's courtyard! And anyway they have granted themselves an absolute amnesty.

Additionally the dominant network also controls the judicial and semi-judicial to a large extent, whatever the colour of the government. And it will be worse with the system implemented with the new constitution, in which elected people have less power than appointed people.

Nothing will happen to the other side

[robblok]

2 minutes ago, candide said:

Come on, no government will do anything against the army for fear of waking up one day with tanks in one's courtyard! And anyway they have granted themselves an absolute amnesty.

Additionally the dominant network also controls the judicial and semi-judicial to a large extent, whatever the colour of the government. And it will be worse with the system implemented with the new constitution, in which elected people have less power than appointed people.

Nothing will happen to the other side

Don't be so sure.. power always shifts.. but your right the army is powerful.. but that does not mean I don't wish them to be under investigation too. Fact remains that its the normal people who are trampled on by all.. and those in power make sure it stays this way. NO matter what side they are on. 

[Reigntax]

1 hour ago, robblok said:

Oh i agree.. only thing you and I dont agree on is that i rather have some punished then none.. the feuding at least brings some to justice.. and when the power shifts..the other side is brought to justice.. Far from perfect but the best that can be done.

 

I have no problem with punishment as long as it is applied equally to all and the laws are clearly defined and predictably interpreted by the courts. Unfortunately neither exist and I cant remember a single prosecution or court decision where a reasonable person would consider the judical system to have functioned even satisfactory.

[robblok]

44 minutes ago, Reigntax said:

 

I have no problem with punishment as long as it is applied equally to all and the laws are clearly defined and predictably interpreted by the courts. Unfortunately neither exist and I cant remember a single prosecution or court decision where a reasonable person would consider the judical system to have functioned even satisfactory.

That is the difference between you and me, I feel that if they break the law they should be punished. No matter that others are not punished for the same thing. Because otherwise none would ever get punished. If you don't want to get punished don't break the law. 

 

I prefer of course the same as you.. but lack of it should not help criminals to get free. That is the major difference in our thinking. 

[12DrinkMore]

2 hours ago, ezzra said:

 

Any over whole of the tax code is a well over due step when 90% of the population

doesn't pay any tax to speak of or non at all, you have all those street level

sellers and merchants that make pretty decent living earning well above the

minimum threshold and still don't pay 1 baht tax and they're in the millions....

And what, exactly, is the problem?

 

Everybody who buys fuel, or stuff from shops such as the 7/11 pays tax. Governments should not see their job as dipping into all their citizen's pockets.

 

Roughly 5% of the population own 90% of all the assets. They should also be stomping up 90% of the taxes........

[jerojero]

So what is Prayut's term in office? Perhaps another 10 years, or permanent PM until he dies?

[mark01]

PM has spent all Thailand's cash and is desperately looking for quick tax income.

Question is, what will they do after the tax money has been spent/lost/pocketed??

[Baerboxer]

3 hours ago, Reigntax said:

 

The army is broken and has been for a century. If it wasnt for their constant interference and acceptance of a two tier justice system specifically designed to protect the wealthy, people like Thaksin and all others similar would never have been voted into power.

 

The only readon Thaksin was popular was because everyone before him only ever represented the elites and were deludedinto thinking the status quo would remain.

 

There has never been a genuine attempt to stamp out corruption, only to reduce the benefits of the opposition by all political opponents. The entire judicial system is a basket case from the RTP to the very top and especially many of the laws under which the system operates.

 

As far as i can see it works exactly as it was intended to and the legislators, their associates and friends, daily reap the benefits of their actions.

 

 

 

Thaksin only threw a few crumbs to the poor. He may have waffled on about democracy but only really cared so long as he won.

 

He also used the defamation and other laws to try and gag critical journalists and prevent information that he didn't like being shared. He made no attempt to deal with corruption or reform the police because he was too busy cashing in on it.

 

Any reform of any process here which reduces the discretion of individual officers in applying the law will be a good step in the right direction. The 4 ex tax officials jailed for helping Thaksin's kids avoid tax might also agree.

[mrfill]

1 hour ago, 12DrinkMore said:

And what, exactly, is the problem?

 

Everybody who buys fuel, or stuff from shops such as the 7/11 pays tax. Governments should not see their job as dipping into all their citizen's pockets.

 

Roughly 5% of the population own 90% of all the assets. They should also be stomping up 90% of the taxes........

And I bet the 5% that own 90% rarely go anywhere near a 7/11 and spend only a tiny proportion of their income on VAT rated goods. However, the poor will be paying VAT on a huge percentage of their income. Sales tax always affects poorer people more. And then there is the middle class, who pay VAT on their expenditure and also income tax as they are not yet in the top income group who are able to 'avoid' paying anything as they can use tax havens offshore and see no reason why they should contribute to education, health, security and infrastructure although they all make use of the facilities.

 

[elgordo38]

9 hours ago, rooster59 said:

The committee will then set up a draft bill which will be sent to the Cabinet and State Council for vetting. If it goes as planned, the bill will then be submitted for debate in Parliament. 

Be sure to back date it to ensnare Thaksin. 

[Chris Lawrence]

So they instigate a new tax system that is well overdue. That is good. However the law that was created to protect the coming of power of the military has a proviso, which indemnifies them from wrong doing. Would this law still stand after the tax review? That being the case, going after one is not going after all. In any event tax reform is about revenue for the country. If tax law has not been reviewed for many years then a lot of lost money is not being collected. Land tax also needs review.

[Reigntax]

3 hours ago, robblok said:

That is the difference between you and me, I feel that if they break the law they should be punished. No matter that others are not punished for the same thing. Because otherwise none would ever get punished. If you don't want to get punished don't break the law. 

 

I prefer of course the same as you.. but lack of it should not help criminals to get free. That is the major difference in our thinking. 

 

The major difference in our thinking is not as you have stated.

 

If adequate laws exist, then a person breaking those laws should be charged. If they are not charged, or if the courts deem them innocent, they have broken no laws. The role of any court is to interpret law leglislated by politicians. The courts role is not assume they know or understand what the drafters intention was. It is using the law exactly as written. 

 

Accurate drafting of laws by competent persons achieves the desired result. Vague drafting creates loopholes and uncertainty where any decent lawyer can argue a case for dismissal of charges against his clients. All power is with the government so they should be blamed  for legal deficiency, not the person who escapes punishment.

 

It is a basic right of any legal defence.

[natway09]

Does it not strike you as a bit odd that the Ministry of Finance & the Tax Dpt  have not taken the necessary

actions in changing the tax laws much since the 1930's?

Incompetent, indolent, just scared  of biting the hand that feeds them or stupid?