Page 171 - _21-0619 OK

The International Journal of the Royal Society of Thailand
Volume XII, 2020

Discussion and suggestions

Although the RD sample tax data set may provide a reasonably good
picture of employment income, it does not provide a full picture of incomes
for the top 1 percent. Perhaps this should be corrected by making it compulsory

to report income from all sources, domestic or external, whether paid in cash
or through the banking system.
It is evident that there are several weak points in the reporting and
assessment of income for tax purposes. Since the objectives of increased
coverage and assessment go beyond the top 1% we conclude this note with some
observations on aspects of the existing system that contribute to under-reporting

and under-assessment and provide the motive for RD’s ongoing work to adjust
regulations and improve compliance.

Reporting of fees, rents and business income

As of August 2017 the RD has 819 offices who all over the country with
two offices in some large districts (Amphur). Therefore the RD is increasingly
able to track and investigate non-compliance on a nation-wide basis, but always
subject to the current revenue code and laws regarding disclosure of information.
For rent income received by individuals and unregistered businesses the
RD has no easy way of checking. Most renting by landlords in the informal

sector is done by word of mouth and on trust. Renters who require a contract
are likely to be asked to pay a higher rental charge.

Self-employed individuals who are hired by registered companies that
deduct withholding tax when payment is made can be crossed checked by
the RD. But if they provide services to other individuals and unregistered
businesses there is no way to check the income they receive.
9

Small businesses such as market traders with annual gross income less than one million baht
9
have the option of paying 5 baht tax for every 1000 baht gross income - a maximum of 50,000 Baht.
There are not many small vendors who are assessed this way. The most likely reason is that they
pay less tax with a standard percentage assessment of expenses and the normal allowances and
stepped tax bands.

163
Francis Cripps and Pasuk Phongpaichit

5/1/2565 BE 09:04
_21-0619(155-166)9.indd 163
_21-0619(155-166)9.indd 163 5/1/2565 BE 09:04