Agency put on notice about corporate tax avoidance
- 21 Apr 2017 at 11:00
- WRITER: WICHIT CHANTANUSORNSIRI
Mr Somchai warned the office to keep an eye on transfer pricing.
The Finance Ministry has instructed the Revenue Department to improve tax collection efficiency and stem tax avoidance by large corporations, whose tax bills have been falling for the past several years.
Over 1,000 large companies classified under the department's Large Tax Office paid less than the tax-collecting agency's target in recent years, resulting in a failure to meet tax revenue targets. These big companies make up 70-80% of corporate income tax, said finance permanent secretary Somchai Sujjapongse.
The department blamed the corporate income tax cut to 20% from 30% in the past for lower tax revenue, but Mr Somchai is doubtful of these large companies' tax bills because the oil price is relatively lower and their product prices remained unchanged.