Thailand strengthens measures to combat tax evasion

Thailand's Revenue Department announces that five gangs have been arrested for supplying fraudulent VAT documents worth 100 million THB. (Photo: Bangkokpost.com)

Bangkok (VNA) – Thailand’s Revenue Department is developing a data analytics system to facilitate entrepreneurs to integrate into the tax payment system and fight against falsified tax invoices, the Director-General of the Revenue Department, Kulaya Tantitemit has said.

Speaking at a press conference alongside the Economic Crime Suppression Division on February 15, Kulaya informed that the two agencies detected five gangs for involvement in the production of fake value-added tax (VAT) invoices.

The Revenue Department estimates that these fraudulent acts have led to a tax revenue loss of approximately 100 million THB (2.7 million USD).

According to Kulaya, the new data analytics system is a strategic move to bolster tax and customs administration. It will enable about 800,000 entrepreneurs to access the VAT payment system free of charge, she said.

She emphasised that investigations uncovered that registered businesses had been issuing VAT invoices without carrying out any actual business transactions.

Such actions harm the VAT system, causing the government to lose a massive amount of revenue, she said.

Pol Maj Gen Sophon Sarapat, deputy commander of the Central Investigation Bureau said entrepreneurs who illegally issue VAT invoices or use such documents are subject to both civil and criminal penalties.

In civil cases, offenders are liable to pay a fine doubling the amount of tax, plus a surcharge at a rate of 1.5% interest per month, or a monthly fraction of the tax amount.

In criminal cases, they have to pay 2,000 to 200,000 THB per tax invoice, and can face a prison sentence of three months to seven years per invoice./.