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Business >> Tuesday July 08, 2008
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STEEL DUTIES

Customs officials press on with tax case

WICHIT CHANTANUSORNSIRI

The Customs Department vows to press forward with a six-year case against importers of silicon electrical steel to pay unpaid taxes and fines.

Officials said the seven importers could face fines and taxes up to 10 billion baht if they insist on going to court. Settling would result in fines and taxes amounting to around two billion baht.

Officials accused seven companies of false declarations for imports of silicon steel in 2002. They said an additional 600 million baht in taxes were owed.

One of the companies agreed to settle the case by paying additional taxes. But the remaining six have declined to settle, and now face additional fines, interest and tax penalties that continue to accrue.

Wisudhi Srisuphan, the customs director-general, said a panel reviewing the case had recently rejected a settlement offer from the six importers.

The importers had proposed paying 600 million baht in back taxes and an equal amount in penalties. But the Customs Department insists that under the law that it is owed the 600 million baht in taxes plus a penalty of twice the overdue amount.

Mr Wisudhi said a settlement would have set a precedent for other cases. He said the importers could either agree to settle and pay the amount calculated by the department or appeal to the courts, which could take up to 10 years.

At the time of the case, the Customs Department imposed a duty of 1% for steel with silicon content of 0.6% to 6%, and 10-12% for silicon steel outside the specifications.

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