Departments trade data
The Revenue Department has linked its information with the Legal Execution Department to better chase down the tax liabilities of people who went bankrupt.
Cooperating with the Legal Execution Department via this technology allows the Revenue Department to get real-time information, which could help it expedite collection of unpaid tax from bankruptcies, said Ekniti Nitithanprapas, director-general of the Revenue Department.
Without up-to-date information, the Revenue Department might pay back income tax refunds to persons who declared bankruptcy instead of redirecting it to official receivers, he said.
Under the bankruptcy law, tax refunds of bankrupt people must be given to official receivers, and the Revenue Department must collect tax liabilities within two months after the bankruptcy declaration.
The Revenue Department does not know how much in tax refunds have been paid to bankrupt persons because it did not have such information before now, said Mr Ekniti.
Ruenvadee Suwanmongkol, director-general of the Legal Execution Department, said 4,000 to 5,000 people a year on average are ordered by courts to be under receivership.
Typically a Bankruptcy Court appoints official receivers to protect a debtor's assets pending a hearing before the debt settlement process begins. If creditors and debtors fail to reach any conclusion, if will enter the insolvency process.
She said around 140 billion baht worth of assets are put under the hammer each year, with half liquidated.
Apart from the information-sharing, the Revenue Department on Tuesday signed another memorandum of understanding with the Legal Execution Department to appoint the latter's officials to remit money incurred from duty stamps to the Revenue Department.
The Legal Execution Department amasses around 7 billion baht a year from duty stamps.