Department rejects OAG tax request

Department rejects OAG tax request

The head of the Revenue Department has brushed aside the Office of the Auditor-General of Thailand's (OAG) request over politicians' tax payments.

The OAG wants the tax-collecting agency to assess the value of politicians' assets rather than just their income, a move the OAG believes would help fight tax evasion and corruption by politicians.

Prasong Poontaneat, the Revenue Department's director-general, said the department had not spotted any signs of tax avoidance by politicians so far.

"We need to consider whether someone got rich from the increasing value of their assets. For example, if somebody bought a plot of land worth 100,000 baht 20 years ago and the asset is now worth 20 million baht. In such a case, requiring them to pay tax is deemed to be unfair," said Mr Prasong.

State Audit Commission chairman Chaisit Trachoetham has said he would submit letters to the finance minister and Revenue Department secretary-general, demanding that they adopt Section 49 of the Revenue Code, which stipulates that the department assess tax based on assets, not only on personal income for politicians. 

Mr Chaisit said tax assessment by scrutinising any changes in asset value was a more efficient way to prevent corruption and the Revenue Department is compelled by the code to do so, otherwise it would be considered violating Section 159 by ignoring its duty.  

Mr Prasong said Section 49 was only applicable to cases where the department could not impose personal income tax in normal practice and it had clear evidence of assets.

The department applies Section 49 to those who commit crimes and are ruled by the courts to have breached the law.

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