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Taxes: Big govt bills, lower corporate taxes

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Big govt spending plans & corporate tax reductions (30% falling to 20%) means govt has to find new taxpayers & tax sources quickly. 



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Economics

Department desperate for taxpayers

Countering transfer pricing a top priority
13/12/2012
Wichit Chantanusornsiri

The Revenue Department hopes to add 200,000 income earners to the tax system in fiscal 2013 to widen its tax base and offset shrinking corporate income tax revenue, says director-general Satit Rungkasiri.

Despite efforts to have more people start paying personal income tax, about 10,000 are added each year.

Given the lower tax revenue projection, 200,000 new taxpayers a year is now the target.

"The reduction of the corporate income tax rate to 23% in 2012 and 20% in 2013 from 30% previously will affect state revenue. We need to work harder to ease the pressure," said Mr Satit.

The government has massive investment plans over the next several years.

Mr Satit said National Statistical Office data showed there are some 350,000 income earners that should have paid personal income tax.

Besides, artifact and amulet traders as well as grey-market car importers are being targeted by the department as sources of higher tax revenue.

Higher taxes are projected for some sectors such as the automobile industry, which benefits from the government's first-time car buyer scheme. Hotels, restaurants, banks and insurance companies have also done well this year.

The reduction of corporate income tax will come with stricter tax inspections, he said.

"We're considering stepping up the penalties for tax evasion to deter tax cheats," said Mr Satit.

In fiscal 2013 ending next Sept 30, the department targets total revenue of 1.77 trillion baht, up by 9% from 2012's tax collection.

Revenue from the department represents 85% of total income of the government...

...Transfer pricing is a major loophole, as it allows big companies to transfer parts of their profits to be booked by their subsidiaries for tax purposes such as to those that have enjoyed tax breaks from the Board of Investment or to sister companies abroad.

The amounts can then be booked as expenses by the transferring companies, thereby reducing their profits and tax liabilities.

"In the past, we found some companies have been adopting these tactics and saved tax payments by as much as 300-400 million baht a year," said Mr Satit.

In terms of inspection, the department establishes average earnings for each segment or industry, and those deviating from the mean will be scrutinised.

(Source: Bangkok Post, Economics, Department desperate for taxpayers, Countering transfer pricing a top priority, 13/12/2012, Wichit Chantanusornsiri, link


Tax Collection Vocabulary

tax - ภาษี (See Wikipedia)
tax collection - the process of the government getting tax money from people and companies

collect
(verb) - gather together things or people at one place เก็บเงิน, เก็บรวบรวม,  รวบรวม
collection
(noun) - การเก็บรวบรวม

evasion - avoiding (doing something you must do) การหลีกเลี่ยง
tax evasion - avoiding the payment of taxes you must pay; tax avoidance; tax dodging  การหลบเลี่ยงภาษี

income tax - the amount of money paid to the government as a percentage of income  (See Wikipedia)
personal income tax - income tax for individual people (See Wikipedia)
corporate income tax - income tax for large companies (corporations) (See Wikipedia)

taxpayers - people who pay taxes (who don't want to see their hard-earned money wasted) ผู้เสียภาษี

desperate - in a bad situation and will try anything to get out of the situation อย่างสิ้นหวัง อย่างหมดหวัง
department desperate for taxpayers

priority
- something important that must be done first สี่งที่สำคัญเป็นลำดับแรก
top priority - the most important goal or thing to do

transfer pricing - the price at which part of a company sells goods or services to another part of the company (located in another country, for example) (See Wikipedia)
transfer - to move someone or something from one place, vehicle, person or group to another ย้าย to official arrange for someone else to be the owner of something โอน

counter - work against something: stop or prevent something from happening;
countering transfer pricing is a top priority

income - money that people receive from work or some other source, used for household consumption and savings
income earners - people or companies that get money during the year (from salaries or profit from business)

fiscal - related to government spending; connected with the government budget, i.e., public money เกี่ยวกับงบประมาณ
fiscal year - the time period of one year on the calendar used to make government budgets and for reporting
fiscal 2013 -
  the fiscal year 2013 (next year)

base
- a group of people on which someone's power depends
revenue - income from taxes or business activities รายได้

the Revenue Department hopes to add 200,000 income earners to the tax system in fiscal 2013

offset - reduce by moving in the opposite direction
adding income earners to the tax system to widen its tax base and offset shrinking corporate income tax revenue

efforts - the work done towards achieving some goal; people trying to accomplish something, achieve a goal ความพยายาม

personal income tax -
despite efforts to have more people start paying personal income tax, about 10,000 are added each year.

target - a goal; the amount you are planning to achieve เป้าหมาย
200,000 new taxpayers a year is now the target

projection - guessing a future amount based on information that you have การคาดคะเน
tax revenue projection
a lower tax revenue projection

rate - a percentage อัตรา
corporate income tax rate - a percentage of income of a corporation paid as tax

state - government รัฐ
state revenue- money received by the government during the year from taxes and fees

"The reduction of corporate income tax rate to 23% in 2012 and 20% in 2013 from 30% previously will affect state revenue

ease - to make or become less severe, difficult, unpleasant, painful, etc ทำให้ง่าย บรรเทา
pressure - stress, a force causing change
ease the pressure - reduce the pressure (force causing change) 

we need to work harder to ease the pressure

massive - very large in size, amount or numberใหญ่โต  มหาศาล
investment - taking your money and putting it into projects to make a profit or earn interest (buying stock shares, bonds, real estate)
massive investment plans

the government has massive investment plans over the next several years.

data - facts or information used for making calculations or decisions ข้อมูล
National Statistical Office data shows ....

Mr Satit said National Statistical Office data showed there are some 350,000 income earners that should have paid personal income tax.

artifact -
an old valuable object; relic, antique (also spelled "artefact") ศิลปวัตถุ,   สิ่งของที่มีคุณค่าทางด้านศิลปะ
amulet -
 เครื่องราง

traders - people who buy and sell things
amulet traders - people who buy and sell amulets
artifact and amulet traders

grey-market - the buying and selling of goods that have not been obtained from an official supplier, usually at a lower price than the official price (See Wikipedia)
grey-market car importers

targeted - aimed at a particular person or group; when a smaller group is selected out from a larger group for special treatment ตกเป็นเป้า
targeted as sources of higher tax revenue.

artifact and amulet traders as well as grey-market car importers are being targeted by the department as sources of higher tax revenue.

projected - the amount that experts believe (forecast) for the future
higher taxes are projected
higher taxes are projected for some sectors

benefits - good things people get from some activity or project ผลประโยชน์
the automobile industry, which benefits from the government's first-time car buyer scheme

scheme - a plan that is developed by a government or large organisation in order to provide a particular service for people แผนการ โครงการ
the government's first-time car buyer scheme

Higher taxes are projected for some sectors such as the automobile industry, which benefits from the government's first-time car buyer scheme.

insurance - a system of protection against loss, a person pays money every month (premiums) for a guarantee that the company will pay them money if they or their property is damaged or lost (See Wikipedia) การประกันภัย 
Hotels, restaurants, banks and insurance companies have also done well this year.

inspection -
looking closely at the details of something to find problems การตรวจพินิจ, การตรวจตรา
tax inspections
stricter tax inspections

The reduction of corporate income tax will come with stricter tax inspections, he said.

penalties - บทลงโทษ
penalties for tax evasion

stepping up the penalties - increasing the penalties

deter - make people not want to do something bad (for example: by punishing them for doing the bad thing) ขัดขวาง, ยับยั้ง, ป้องกัน
deter tax cheats

stepping up the penalties for tax evasion to deter tax cheats

targets - goals or levels you plan to achieve
In fiscal 2013 ending next Sept 30, the department targets total revenue of 1.77 trillion baht, up by 9% from 2012's tax collection.

X represents Y% of Z
X is Y% of Z
Revenue from the department represents 85% of total income of the government...

loophole - a small mistake in an agreement or law which gives someone the chance to avoid having to do something ช่องโหว่ในกฎหมาย, จุดอ่อน, ข้อบกพร่อง
a major loophole

booked - recorded in the accounting system (and to show up on official company financial reports)
subsidiaries - a smaller company owned or controlled by a larger company บริษัทสาขา

profits to be booked by their subsidiaries for tax purposes

tax breaks - when the government says you don't have to pay some tax
sister company - another related company (with the same owner)

enjoyed tax breaks from the Board of Investment or to sister companies abroad

...Transfer pricing is a major loophole, as it allows big companies to transfer parts of their profits to be booked by their subsidiaries for tax purposes such as to those that have enjoyed tax breaks from the Board of Investment or to sister companies abroad.

liabilities - debts; the amount of money that a company owes; money borrowed by a company (liabilities + owners' equity = assets) หนี้สิน หนี้ขององค์กร
tax liabilities - money that a company has to pay in the future for taxes

The amounts can then be booked as expenses by the transferring companies, thereby reducing their profits and tax liabilities.

adopting - accepting or starting to use something new นำมาใช้
tactics - particular methods for achieving some goal วิธีการ ไม้เด็ด กลเม็ดเด็ดพราย

"In the past, we found some companies have been adopting these tactics and saved tax payments by as much as 300-400 million baht a year," said Mr Satit.

establish - determine, make an estimate of the value
establishes average earnings for

segment - a part of something ตอน ส่วนต่างๆของสังคม
establishes average earnings for each segment or industry

inspection - the act of looking closely at something or someone and to check that everything is as it should be; examination การตรวจสอบอย่างละเอียด การตรวจสอบตรวจตรา

in terms of inspection, the department establishes average earnings for each segment or industry

deviate - to be different from
the mean -
the average
deviating from the mean - to be different from the average

scrutinised - looked at carefully to see if there are problems ตรวจสอบอย่างละเอียด
those deviating from the mean will be scrutinised

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