Thailand Tax Audit Survival Guide
By: Sirirat C., NAT
If you‘ve got a surprise visit from the tax officer, do not worry since it is the current policy that they will send an officer to knock on every business door in order to understand your business and advise you on how to comply with the tax laws.
Most of the questions will be asking for basic information about your business, such as the date of your establishment, type of business, number of employees, VAT registration number(if any), your major income and expenses and the result of your business in previous year.
These are the documents they will request from you
a) Receipt and copy of tax return you’ve filed
b) Receiving and payment voucher (1-3 month)
c) Sales and purchase tax invoices
d) Bank statement
In an audit, you must convince the Tax Revenue Department that you reported all of your income and were entitled to all credits, deductions and exemptions, below are some guidelines on how to prepare yourself and be ready for the audit.
1. Don’t be in a hurry.
You may request more time if needed to get your records in order.
2. Place for audit.
Let the tax auditor audit your documents at their office rather than yours.
3. Estimate the risk.
Be aware that you may have to pay a fine due to the tax audit.
4. Don’t talk too much
Do not give the auditor more information than they have asked for and don't talk more than is necessary. The adjustments they may make could be less damaging than if you had given them what they asked for.
5. Don't offer other years' returns.
Don't give copies of other years' tax returns to the auditor — if you do and they see something they don't like they will make adjustments in those years too. Don't bring to an audit any documents that do not concern the year under audit or were not specifically requested by the audit notice.
6. Organize your records.
Try to check and organize all records the auditor might ask for before the audit. Organization can impress an auditor that you handle your books professionally.
Ask the tax auditor about any mistakes they found and defend your position. Negotiate tax issues — for example, whether a certain deduction should be allowed or not.
8. Study the laws
Read Tax Publication and Taxpayers' rights prior to your audit. Research legal tax issues. If you are still unclear about the tax law or how to present your documents to an auditor, consult a tax pro before the audit.
9. Consult a tax pro.
If you face problem during an audit, don't try to handle it yourself. Anytime an audit is not going well, you can seek advice from your tax consultant. In addition, you can ask to speak to the auditor's manager if you think the auditor is treating you unfairly.
10. Appeal the result.
When you get the examination report, call the auditor if you don't understand or agree with it. Meet with them or their manager to see if you can reach a compromise. If you disagree with the audit final result, you may appeal or go on to Tax Court.
By:Sirirat C., Managing Director of NAT, the 1st accounting firm in Thailand who has been certified by the Ministry of Commerce(Ref.dbd.go.th),NAT is also an ISO 9001 certified company.