In the event that person especially for a private limited company submitted the tax application and paid the taxes inaccurately, they have to amend such details and be responsible for additional tax liabilities if it is required. However, if such an entity intentionally avoids performing the taxes, it may cause civil & criminal liabilities under the Revenue Code. We then would like to propose the preliminary processes related to this tax dispute.
With reference to the Thai Revenue Code, Section 19 determines that if the revenue officer reasonably believes that anyone declares the tax liability form incorrectly or incompletely, the revenue official shall have the power to issue a summons for such person submitting the form in order to conduct an investigation process, issue a subpoena for witnesses and order such person submitting the form or the witness to bring relevant documents or other evidence suitable for the matter to be presented to the officer. This Section also stipulates the period in issuing summons or subpoenas for an investigation that must be provided to such person not less than 7 days in advance.
The investigation date must not be later than 2 years. except in the case, there is evidence or reasonable ground to suspect that the person intends to evade tax or in case of necessity for the benefit of a tax refund. This exception can be extended more than 2 years but not exceeding 5 years. The officer has the right to amend the tax liability amount and request such a person to pay the additional payment. In this regard, the default interest must be paid at one time of such payment. However, if it appears to the officer that there is an excess amount paid by such person, the person shall submit a request to refund within 3 years.
The person has to pay the additional amount by the assessment of the revenue officer, has the right to appeal such assessment within 30 days from the date of receiving such order. If the revenue office where the officer works is located in the area of Bangkok, an appeal shall be submitted to the committee to consider an appeal, comprising of the director-general or a representative, a representative of the Public Prosecutor's Department, and representatives of the Department of Provincial Administration.
If it is located in other provinces, shall be appealed to the committee which consists of the provincial governor or its representative, the District Revenue Department or its representative, and Provincial Prosecutors or its representatives.
If anyone who intentionally does not submit a tax form and pays tax inaccurately to avoid any taxation shall be liable to imprisonment not exceeding 1 year, or a fine not exceeding 200,000 baht or both. In addition to events in forgoing paragraphs, there are many circumstances authorizing the revenue officer to issue a summons. It may arise the legal effects to a person not complying with the officer’s order. With our expertise in representing clients in both corporate and litigation practice areas, we are pleased to serve you the legal services in relation to these matters.