On 15 March 2017 Thailand's Board of Taxation issued Ruling No 41/2560 that clarifies the issuance of a summons for tax audits of filed tax returns.

This Insight has been updated for the Board of Taxation's Ruling.

The Tax Audit (Investigation) Laws

The Revenue Code Section 19 and Section 20 are the tax audit (tax investigation) laws for tax returns that have been filed.

Section 19 prescribes:

• When there is reason to believe a person reported false or inadequate information in a tax return, Revenue officers have the power to issue a summons to the person who filed the tax return or a witness requiring either of them to appear for investigation and produce account books, documents and other records for investigation provided at least 7 days notice is allowed for compliance with the summons, and provided the summons is issued for no more than the previous 2 tax years or as the Minister extends whichever is the latter except when there is reason to believe the person filing the tax return had the intention to avoid tax, a summons may be issued for no more than the previous 5 tax years.

And Section 20 prescribes:

• After having followed the procedure under Section 19, and after having informed a person who filed a tax return, the Revenue officers have the power to adjust amounts in a tax return on the basis of evidence and to issue a notice of tax assessment. 

The Board of Taxation's Ruling No 41/2560

As the 10 years statute of limitations under the Civil and Commercial Code was expiring at the end of March 2017 for taking action against a person's filed tax return for the 2006 year that's filing due date was at the end of March 2007 the Revenue Department asked the Board of Taxation if the Minister could use his power under the Revenue Code's Section 3 octo to extend the previous 5 years prescribed in the Section 19 law in order to issue a summons to the person.

The Board of Taxation's Ruling was that:

Section 19 is a specific provision dealing with issuance of summons by tax audit officers and thereafter the issuance of tax assessment notices to taxpayers. The provisions in Section 3octo are for generally extending or postponing periods of time, not for extending or postponing the specified periods in Section 19 for the issuance of summons.

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