Grey market, e-commerce among main targets

The Revenue Department is planning to collect tax from the grey market, e-commerce and the sale of Buddha amulets to compensate for lost income resulting from next year's reduction in the rate of corporate income tax.

Satit Rungkasiri, director-general of the department, said yesterday that it also planned to bring about 200,000 of those currently outside the payment system into tax collection next year.

Some 350,000 companies and individuals are currently not subject to tax collection, according to the National Statistical Office.

Businesses currently avoiding tax payment include grey-market services such as independent importers of luxury cars, e-commerce operators, dealers in Buddha amulets, and businesses with unusual tax refunds, Satit said.

There will be a system in place to inspect the input and output value-added tax of corporates, he said.

He added that some types of business and individuals that avoid paying full tax, as well as those in sectors with good performance such as automobiles, hotels, restaurants, financial institutions and insurance firms, would be targeted more closely for tax collection.

"We will seriously collect tax from those who should pay the full rate, and we will not wait for their tax submissions from now on," he said at yesterday's "International Tax Dialogue Conference" in Bangkok.

Satit also said the flow of investment from developed economies to developing countries in the region had prompted the department to consider more protection measures to prevent tax avoidance from profit transfers from high- to lower-tax countries.

"The department will closely monitor businesses that have a high opportunity to avoid tax payment, especially big corporates and multinational companies who control many subsidiaries and have a high profit, together with wholly owned companies that report a high deficit as well as their subsidiaries established in countries without tax collection. After inspection, the department collects about Bt300 million to Bt400 million from such companies," said the agency head.

The department reported that the number of large corporates and their subsidiaries was in the region of 3,400-3,500 companies, accounting for 50 per cent of the value of corporate-tax income.

Meanwhile, total tax collection during the first two months of the current fiscal year, October and November, was 25-26 per cent above target, and 8 per cent higher than in the same period last year.

The agency targets tax collection expanding by 9 per cent to Bt1.774 trillion during the fiscal year, taking into account predicted economic growth.

Latest stories in this category

• Grey market, e-commerce among main targets


• The Revenue Department is planning to collect tax..


• BOT inflation targeting wins praise


• True-CAT 3G deal awaits council of state verdict

We Recommend

• World's fastest men head for Bangkok to compete in racing..


• The Rajamangala National Stadium in Bangkok will..


• Expat denies role in grisly killing


• 'Government to blame' for poor graft ranking

Comments conditions

Users are solely responsible for their comments.We reserve the right to remove any comment and revoke posting rights for any reason withou prior notice.

Article source: http://www.thethailandlinks.com/2012/12/13/grey-market-e-commerce-among-main-targets/