On March 28, 2019, Mr. Kriangsak Prasongsukarn, Deputy Director-General of the Revenue Department, announced that starting from July 1, 2019, the department will implement strict tax audits on SMEs with corporate income not exceeding 500 million baht. Currently, there are 460,000 such companies nationwide, particularly focusing on businesses that engage in cash transactions and deposit large sums into financial institutions, such as online trading and e-commerce, which are considered high-risk groups for tax evasion.

          "The Revenue Department has signed cooperation agreements with various agencies to link data for audits, including the Bank of Thailand (BOT), which will inform commercial banks to require financial statements submitted to the Revenue Department as part of loan applications. Additionally, data from the Department of Business Development and accounting firms will be linked. This information will then be analyzed using artificial intelligence (AI) to identify high-risk business types. Penalties will include not only tax payments but also fines and additional charges or interest at 1.5 times the amount," Mr. Kriangsak stated.


          Mr. Kriangsak further mentioned that during this period, the Revenue Department will allow SMEs to submit tax adjustment forms for past tax filings to correct inaccuracies. The Tax Exemption Act of 2019 will exempt registrants from penalties and additional tax charges, although they must still pay taxes. Registration will be open on the Revenue Department's website www.rd.go.th from April 1 to June 30, 2019. After that, all types of tax forms must be submitted online for one year, from July 1, 2019, to June 30, 2020, except for those who issue fake tax invoices, who will not be eligible for this measure.


          This measure is part of the initiative to promote single accounting practices. This will be the final opportunity for adjustments, and there will be no further openings. If anyone fails to register by June 30, the department will conduct intensive and strict tax audits. However, those who register will not be considered high-risk and will be exempt from penalties and additional charges, although taxes must still be paid, which differs from the previous amnesty in 2015 when the department granted full pardons.


          For benefits, registered operators who declare their rights and submit tax forms or request to pay taxes in cash, along with complete payment by June 30, 2019, will be exempt from penalties, additional charges, and criminal fines for corporate income tax for periods starting on or after January 1, 2016, to December 31, 2017, value-added tax and specific business tax for tax months from January 2016 to February 2019, and stamp duties paid in cash instead of affixing stamps from January 1, 2016, to March 25, 2019, as well as all types of taxes that must be withheld or submitted for transactions occurring from January 1, 2016, to March 25, 2019.


          "The Tax Exemption Act of 2019 aims to support accounting practices that reflect the true state of businesses, creating credibility for companies or partnerships in accessing funding sources and facilitating financial transactions, thereby enhancing competitiveness for operators. This act came into effect on March 26, 2019," Mr. Kriangsak concluded.

 

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