Half of the 300,000 small and medium-sized enterprises (SMEs) who signed up for the government's single financial account scheme are at risk of facing backdated tax and money laundering probes as they persist in using more than one account to understate income tax bills.
The 150,000 SMEs are engaged in many businesses, ranging from consumer goods to restaurants, lending, goldsmiths, pharmaceuticals and auto repair, said Prasong Poontaneat, director-general of the Revenue Department.
SMEs that continue to use multiple financial accounts have one month to comply with the requirements, as the department will tighten its examinations soon, Mr Prasong said.
"In the past, the department did not want to implement harsh measures without giving the operators time to adjust," he said. "We understand that business owners have family to take care of, and there will be social impacts if we don't give them time."
The single financial account scheme was initiated last year to lure SMEs to enter the formal tax system by offering them tax perks and exemption from backdated tax probes.
Under the scheme, registered SMEs with annual sales of up to 500 million baht are exempt from backdated tax scrutiny. Those with registered capital not exceeding 5 million baht and revenue not exceeding 30 million baht for the 2015 accounting year had no tax burden for the 2016 accounting year.
Corporate income tax of 10% is imposed on those with net profits exceeding 300,000 baht for the 2017 accounting year, while a tax exemption will be allowed for net profits of up to 150,000 baht.
SMEs taking part in the scheme will resume paying normal tax rates from 2018. SMEs are currently exempt from corporate tax for net profits of up to 300,000 baht, but they pay 15% tax for net profits of 300,001 to 3 million baht and 20% for net profits of more than 3 million baht.
There are 600,000 SMEs registered as juristic persons, of which 400,000 are active. Some 3,000 active juristic SMEs are liable for income tax payment, and most SMEs that avoid tax bills are those earning below 30 million baht a year.
The scheme's registrants who continue to keep multiple accounts underestimate the department's sincerity, Mr Prasong said. Digital payment platforms such as quick response (QR) code payment are expected to allow better access to taxpayers' information.
The department has begun sending tax-dodging suspects a warning that they could face money laundering probes, Mr Prasong said.
