When running a business in Thailand, you may get a letter from the Revenue Department saying they want to inspect your company. Sometimes the Revenue Department officers may visit your office. Other times, you need to visit the Revenue Department office yourself.
When this happens, don’t fret. This article will show you how to deal with the Revenue Department officers and prevent any mistakes that may occur.
Check the Legitimacy
With most inspections from the Revenue Department, you will get a letter from them scheduling a visit. It’s an official letter with the Thai Government emblem, the Garuda, and a specific date, location, and purpose of the inspection.
If you can’t make it, you can call the Revenue Department and schedule a new date.
Revenue Department officers normally should not come to your office without issuing the letter in advance.
When the Revenue Department officers approach your office, in most cases, they will come:
- as a group
- during government working hours
- in a car with the Revenue Department sticker
- with Revenue Department ID cards
You can ask these officers to present their ID cards, and you can call the Revenue Department Call Center at 1161 or your local Revenue Department office to verify.
If anyone claiming to be a Revenue Department officer approaches your office without the letter, do not let them come into your office until you verify their identity. Instead, call the Revenue Department to check the legitimacy.
Sometimes, a Revenue Department officer may visit you without a letter. But this does not usually happen.
Understanding the Purpose
There are two purposes for the inspection.
The first one is to confirm your business legitimacy. This type of inspection is for newly registered companies. Revenue Department officers want to make sure you run your business legally and suggest ways to file taxes.
The second purpose is to find out whether you submit and file taxes, including both corporate and value-added taxes, correctly.
You need to work with your accountant and prepare relevant documents.
You must prove your income, expenses, and tax filing receipts.
Preparing the Right Documents
You need to prepare only the necessary documents. If you give them more than what they ask for, they may find another mistake and inspect you more.
Note that some documents such as bank passbooks may trigger more questions from Revenue Department officers. You can prepare documents in advance but don’t present them unless you’re asked for them.
Preparing Yourself
Depending on the purpose of the inspection, you need to do extra work and prepare yourself for any questions the Revenue Department may ask during the inspection.
If it’s to check if your business is valid, Revenue Department officers may ask questions regarding your business, and give you advice on how to file taxes in Thailand.
However, when it comes to paying tax, you should prepare necessary info including when you pay taxes and how your taxes are calculated.
Bringing English-Speaking Accountants
The Revenue Department officers may come with a recorder to voice record the inspection.
Although it’s not necessary, you should be there during the inspection with an accountant who can speak English.
Your accountant is the key person here. He or she will act as an interpreter between you and the officers.
You should be the one who answers questions in English and ask your accountant to interpret it into Thai.
Doing so would make it hard for the Revenue Department officers to ask you more questions, especially specific ones about your business.
If a question is unclear, ask the Revenue Department officers to clarify it and have your accountant translate your answer accurately.
Dealing with Results
After the inspection, Revenue Department officers will give you a document to sign.
Read it and sign when you understand and are satisfied with the results.
After signing, it can be much harder to challenge the results or negotiate any additional tax, surcharge, or penalty.
If the inspection results in additional tax, surcharges, or penalties, you have three choices:
- pay the amount assessed
- ask whether any lawful reduction or waiver is available
- dispute the assessment
If you’re confident that you did everything right, you can schedule to send more documents and dispute the assessment.
However, this process is going to take a lot of time. Some people may pay the amount assessed if the amount isn’t a lot, instead of dedicating their time to preparing and talking to the Revenue Department officers for another round.
If it’s your fault, it’s still possible to ask whether any lawful reduction or waiver is available. You can talk to Revenue Department officers about this to decrease any penalty.
Sending Documents
If you need to send documents to Revenue Department officers, always do a document checklist stating all the documents you’re sending to them and ask them to sign it.
If Revenue Department officers lose your documents, you can use it to safeguard yourself.
It can also prevent the Revenue Department officers from asking you for more documents, especially if you already sent them.
You should also do the same when the Revenue Department officers return your documents.
Final Point
Always keep in mind that Revenue Department officers are only human. They may make mistakes when calculating your taxes. You don’t need to listen and agree with everything they say.
If you follow the law and regulations, you should be safe from them.
If any officers ask you for money under the table to avoid fines, don’t accept it. Doing so may put you in jail.
Instead, report it through official channels, such as the Revenue Department or Thailand’s anti-corruption authorities.
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