On 24 Feb 2016, Thailand Revenue Code Amendment Act (No. 41) was gazetted, amending the Thailand tax evasion law for not filing tax returns.
This Insight has been updated for the amendment.
Penalties and Punishment for Not Filing Tax Returns
Penalty
For persons who fail to file tax returns the Revenue Department's tax audit officers have the power to order such persons to produce books, documents and evidence, and penalize the taxpayer who failed to file the tax return. As prescribed in Section 26 of the Revenue Code:
In the case of a tax audit officer assessing tax to a taxpayer who failed to file a tax return, the taxpayer shall be liable to a penalty equal to:
200% of the assessed amount of tax that is payable.*
* If a taxpayer cooperates with the Revenue Department's tax audit officers, and files an application with the tax audit officers stating there was no intention to evade tax the tax audit officers have the power to grant a reduction of the 200% penalty under Section 26 to a penalty of 100%.
Surcharge
In addition to the above penalty, a surcharge (interest charge for late payment) is also payable. As prescribed in Section 27 of the Revenue Code:
Any person who fails to pay tax within the time specified for paying the tax, shall pay a surcharge of:
1.5% for each month or a fraction of a month an amount of tax payable is not paid from the time specified for paying tax to the date the tax is paid.
Punishment for Evading Tax
As prescribed in Section 37 bis of the Revenue Code:
Whoever intentionally avoids (evades) payment of tax by failing to file a tax return can be punished by:
Imprisonment for a term of up to 1 year*, or
A fine up to 200,000 Baht*, or
Both*.
* As amended by Revenue Code Amendment Act (No 41) gazetted on 24 Feb 2016
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