On 24 Feb 2016, Thailand Revenue Code Amendment Act (No. 41) was gazetted, amending the Thailand tax evasion law for filing false tax returns.
This Insight has been updated for the amendment.
Penalties and Punishment for Filing False Tax Returns
Penalty
For persons who file false tax returns, the Revenue Department's tax audit officers have the power to adjust the amounts stated in the filed tax return on the basis of evidence and penalize the taxpayer who filed the false tax return. As prescribed in Section 22 of the Revenue Code:
In the case of a tax audit officer adjusting a taxpayer's filed tax return the taxpayer shall be liable to a penalty equal to:
100% of the adjusted amount of tax that is additionally 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 100% penalty under Section 22 to a penalty of 50%.
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 of the Revenue Code:
Whoever intentionally avoids a payment of tax or claims a refund of tax* by filing false tax returns, or providing false statements or false answers to questions, or providing false evidence, can be punished by:
Imprisonment for a term of 3 months to 7 years, and
A fine of 2,000 Baht to 200,000 Baht.
* As amended by Revenue Code Amendment Act (No 41) gazetted on 24 Feb 2016
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