News No.   :  24/2007

Date             :  20 June 2007

Subject        : Brainstorming by foreign tax administrations to enhance efficiency in taxing the cash intensive business

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                          Officials from 13 foreign tax administrations from Australia, China, Hong Kong SAR, Indonesia, Japan, the Republic of Korea, Malaysia, New Zealand, Philippines, Singapore, Chinese Taipei, Thailand and Vietnam meet in Thailand during 18-22 June 2007 to exchange views and discuss ways to enhance efficiency in taxing the cash intensive business.  On the first day an expert from OECD was invited to make a presentation and make comments on the cash intensive business.

                         Mr. Satit Rungkasiri, Deputy Director-General and spokesperson of the Revenue Department said, “SMEs have a tendency to use cash in their transactions.  Therefore, a tax administration needs to have effective risk assessment and management approach or this taxpayer group.  Other factors should also be taken into account such as the activities of the business, the economic situation, technological innovations and data analysis in order to determine the appropriate compliance and tax collection strategies.  All officials agree that punishment may not always be the most effective tool.  We need to assist taxpayers to comply with the laws.  Therefore, the provisions of the law should be clear.  We must also provide good services with simple forms, e-services including filing and registration and access to existing rulings.”