The Revenue Department is developing a data analytics system for entrepreneurs to enter the tax payment system and avoid counterfeit tax invoices, says director-general Kulaya Tantitemit.
At a press conference with the Economic Crime Suppression Division on Thursday, she said the department and the division have jointly arrested five gangs producing fake value-added tax (VAT) invoices.
The department estimated the loss of tax revenue at 100 million baht.
The department is using the power of analytics to improve the efficiency and effectiveness of tax and customs administration, in particular enabling around 800,000 entrepreneurs to enter the VAT payment system at no cost, said Ms Kulaya.
She said the issuance of fake VAT invoices violates Section 90/4 of the Revenue Code and allows understatement of corporate income tax bills.
As a result of the investigation, other registered businesses were found to have issued VAT invoices without conducting real business transactions, said Ms Kulaya.
"Such actions harm the VAT system, causing the government to lose a massive amount of revenue," she said.
Pol Maj Gen Sophon Sarapat, deputy commander of the Central Investigation Bureau, said entrepreneurs who illegally issue VAT invoices or use such documents are subject to both civil and criminal penalties, according to Section 86/13 of the Revenue Code.
In civil cases, offenders are liable to pay a fine doubling the amount of tax, plus a surcharge at a rate of 1.5% interest per month, or a monthly fraction of the tax amount.
In criminal cases, offenders are liable to pay 2,000 to 200,000 baht per tax invoice, and can face a prison sentence of three months to seven years per invoice.