News No.     : 3/2009

Date             :  5 January 2009

Subject        : The Revenue Department warns grateful children to claim for parent allowance, at the time of filing P.N.D. 90 and P.N.D. 91, only when all the conditions are satisfied.

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                         Now it is the time to file personal income tax returns (P.N.D. 90 and P.N.D. 91) for the tax year 2008 (the filing period is between 1 January 2009 and 31 March 2009). For the past 2 years, there were those who claimed for parent allowances while they were not entitled to. As a result, there were miscalculations in tax amounts leading to additional taxes. Also it delayed tax refund process for those who were entitled for tax refunds.

                         Mistakes found in deducting parent allowance can be summarised as follows:

                         1. Claims for parent allowance were made for parents who were not yet 60 years old (the condition for age requires that a parent must be above 60 years old);

                         2. Claims were made for parents who earned income more than 30,000 baht in the taxable year (the condition for income requires that a parent must earn not more than 30,000 baht per year);

                         3. Claims for one parent were made by at least 2 taxpayers (it is required that allowance for one parent can be claimed by only one of the children).

                         Mr. Satit Rungkasiri, Principal Advisor on Strategic Tax Administration and a spokesperson of the Revenue Department, said that

“We would like to emphasise that claiming for any allowances is a right of taxpayers. If a taxpayer wishes to exercise his/her right to deduct a certain allowance, he/she must make sure that the required conditions are satisfied and show such allowance item on the forms P.N.D. 90 and P.N.D. 91. Such action will help us to service the taxpayers conveniently and correctly, and will prevent any undesirable future liabilities such as penalties and surcharge. Moreover in the case where a taxpayer is entitled for tax refund, the action will help the tax refund process become faster and more convenient.