Those withholding tax will face audits, Finance warns

"Everyone has to pay tax. In case of no tax payment, procedures have to be carried out. So the [tax] collection agencies have to take a look," Deputy Finance Minister Benja Louichareon said yesterday.

While the leaders of the current anti-government protests are asking people to join their campaign by delaying tax payments, she expressed no concern, as paying tax is a civic duty. However, if people insist on not paying what is due, the tax agencies will have to follow up.

If the protest leaders and supporters pay tax as usual, there will be no strict inspection, but if they do not file a tax return, there will be an audit, she warned.

The political demonstrations have not dented state revenue collections. In October, the first month of the fiscal year, the government’s receipts came in higher than expected for all line items, particularly value-added tax, which reflected higher spending. Last month, tax revenue ran about Bt7 billion above budget.

Thanusak Lek-uthai, another deputy finance minister, said there might not be any tax avoidance as the protesters were educated people.

Benja said an agreement had been reached among the Customs, Excise and Revenue departments to coordinate tax-collection management with a plan to set up a specific team to examine business operators’ tax returns more efficiently.

The ministry has found some irregularities in tax returns in the past, but in-depth information was not available because of a limitation on data linkages among tax agencies.

"The to-be-established specific team has to bring suspicious issues for review and inspection. If any irregularities are found, operators will be invited to clarify their positions. This is to make them aware of [required] tax payments," Benja said.

After the protesters threatened to cut power in several areas, Suthep Liumsirijarern, permanent secretary of the Energy Ministry, asked energy-related agencies to monitor the situation and upgrade their security to the highest level.

He also asked the protesters not to use the country’s energy security as a political tool as power cuts or intrusion into energy-related places would weaken the nation’s security and violate the law.

Arthorn Sinsawad, governor of the Metropolitan Electricity Authority, said after its labour union threatened to cut power to Government House and the Interior Ministry that the MEA had joined with the ministry in setting up a 24-hour centre to cope with the situation. The MEA’s regular maintenance was also postponed.

Anyone who cuts or steals power or causes damage to power-related property goes against the law, he said.

This year, power demand is expected to rise 0.9 per cent in the MEA’s area, given the current economic slowdown, he said, adding that power use remained normal right now.