Revenue warns accounting firms

Economy July 31, 2014 00:00

By Suphannee Phupisut

The Nati

The Revenue Department is threatening thorough inspections of accounting firms that prepare tax filings for clients if its new computerised tax-audit system spots irregularities. The clients themselves could also be targeted.

The department’s director-general, Prasong Poontaneat, said it hosted a seminar yesterday that was attended by 700 representatives of the country’s 10,000 accounting firms.

The department has begun using a computerised system to audit tax filings and will individually inspect clients of those accounting firms that have excessive irregularities. These include cases where accounting figures on sales volume, expenses, inventory, and purchase tax are not line with normal accounting standards and practice.

Accounting firms must take the lead in ensuring their clients pay the proper amount of taxes in relation to the size of their business operations, the department says.

The Revenue Department is working closely with the Business Development Department and the Federation of Accounting Professions to help them regulate the quality of accounting standards and practice in Thailand.

In addition, the Revenue Department will revise its internal regulations to allow it to check the audits of its regional offices to curb irregularities and fraud, reduce paperwork by enabling online corporate-tax filings, and curb cheating by going after fraudulent establishment of corporate entities for personal tax benefits.