Tax disputes and appeals
Historically, Thailand has not been an overly zealous litigious
country. However, in recent years, as international and domestic
transactions have become more complex, this has, in turn, resulted in
a host of new legislation, most of it highly technical in nature. At
the same time, Thailand’s Revenue Department and Large Tax Office have
introduced new policies of tax audits on the “realization rule”,
“classification of income”, “allocation of expenses”, and “transfer
pricing”. All of which has seen a significant increase in the number
of tax disputes that have arisen as corporate and financial
institutions try to comply with both the new rules and the manner in
which they are being interpreted.
Our experience at
has shown us that many of these disputes are not simply about
tax-related litigation, but rather involve far deeper and more complex
issues which can be time consuming and which also involve a heavy
commitment on the part of our clients’ internal resources.
Due to the aggressive position undertaken by the Thai Customs
Department, a number of companies have been charged with customs fraud
caused merely by an improper declaration of the customs base price,
even without the intention to avoid any customs payments. This has
usually lead to criminal charges against the authorized directors and
penalties equal to four times the customs price. Something that most
companies cannot afford to pay.
During the past couple years, we have stood by importers who have been
unfairly accused of committing customs fraud by government officers
and who have become victims of abuse by the authority. We have fought
to the end and saved a number of them from such unfair treatment.
is not a firm that is afraid of challenging government authorities and
we do not provide advice simply by relying upon the current position
of the Government.