Thailand Business Operation Visit Tax Investigations
Following the 1997 economic crisis, the IMF's assistance to Thailand required the Thailand Government to boost its state tax revenues through enhanced tax collection techniques. The Business Operation Visit (BOV) is one of those enhanced techniques, which most Revenue Area Offices commenced in the 2001 year.
A BOV is a review (as opposed to an audit or investigation). It is similar, if you like, to what a statutory auditor does when he is reviewing a listed public company's quarterly results, i.e. its a higher-level “desk top” type review, rather than a detailed audit or investigation.
Broadly, the procedures employed by the Thailand Revenue audit officers for a BOV are:
The BOV procedures require the Revenue audit officers to visit the company’s offices as well as its factory and/or warehouse premises.
The visit to the company is then followed by the Revenue officers' review of samples of tax returns and supporting schedules to gauge the status of the company's tax compliance.
The Revenue Department's time allocation for completion of a BOV is three months from the date of the visit to the company. If it is not completed within the 3 months time period because the tax audit officers remain unsatisfied, they will move you to a special audit (a review of the particular tax(es) they are not satisfied about), or, in the case of the tax audit officers having suspicion about the company's tax compliance, a detailed tax investigation (i.e. a detailed tax audit of all the company's tax obligations under a Summons notice).
It is therefore important for company staff to deal with BOV matters or issues straight away and within the 3 months time period.
This Tax Insight is general information only. It should not be used to determine any particular matter without consulting with an experienced Thailand tax advisor.