Thailand Summons Tax Investigations under Section 23
Thailand's Supreme Court has issued a ruling about the Revenue Department's decision to assess tax using the 5% of gross income basis under Section 71(1) to a company that had been issued a Summons under Section 23.
Section 23, one of the provisions in the Thai Revenue Code for summons tax investigations, prescribes that:
Supreme Court Case No 5150/2559
The taxpayer failed to file a tax return and also failed to comply with the summons issued by the Revenue Department's tax audit officers. The tax audit officers issued a warning letter, after which the taxpayer cooperated by complying with the summons and the requirements under the summons.
Irrespective, however, the Revenue Department tax audit officers decided to apply the 5% of gross revenue method of assessment under Section 71(1) on the basis that this method of assessment resulted in a higher amount of tax for the Revenue Department.
The Supreme Court reasoned:
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.