Some 700 small and medium-sized enterprises (SMEs) signed up for the single financial account scheme as of yesterday to obtain the exemption from penalties for increased tax liability, says the Revenue Department.
"This is the last chance for SMEs to show their intention to join the single financial account scheme, exempting them from higher tax penalties and criminal liability," said director-general Ekniti Nitithanprapas.
"We will not be lenient with SMEs failing to join the scheme by June 30."
The waiver of fines and criminal liability does not mean a tax amnesty because SMEs are still liable for corporate income tax, but the leniency is meant to encourage SMEs to join the single financial account scheme.
The department is requiring SMEs to electronically submit tax forms from July 1, 2019 to June 30, 2020.
Under the single account scheme, the Bank of Thailand requires banks give greater consideration to financial statements submitted to the Revenue Department when considering SME loans, starting next year.
But the requirement has stoked concerns the single account scheme will restrict access to finance for most SMEs, which tend to use more than one financial account and submit the smallest one to understate or avoid tax.
Mr Ekniti said a legitimate accounting system will allow SMEs to acknowledge their business conditions, enabling these companies to beef up their competitiveness and granting greater loan access.
Regarding the e-payment law, it is not only to facilitate tax payment for online businesses, but also meant to create fairness for all taxpayers, he said.
"We still have the authority to check the personal income of every taxpayer without the law, but it will enhance fairness for all taxpayers," said Mr Ekniti. "The department has used artificial intelligence to detect good and bad taxpayers, making tax avoidance more difficult."