PwC Tax Insight PwC Tax Insight # 05/2013 TAX & LEGAL UPDATE

PwC Tax Insight # 05/2013
TAX & LEGAL UPDATE
TAX & LEGAL Services
Heading :
The following report
may be of interest to :
Summary :
*Issued Date: 9 July 2013
More tax assessment letters can be expected by August 2013
Manufacturers promoted by the BOI
PwC Tax insight:
The 10 year assessment deadline is looming close for companies with year
year-end
closing in March which received tax summons back in 2003. What can be expected
is that the Revenue Department would have no option but to issue their final tax
assessment letter for
f the period of 2003.
One of the issues which have drawn much debates and discussions amongst tax
scholars and government authorities over the recent years is the netting off of
profits from one Board of Investment (“BOI”) promoted project against the lloss of
another before offsetting with the profit from the non
non-BOI business for the same
year (i.e. BOI net off). On 13 October 2010, the Tax Court had ruled in favor of the
taxpayer that the netting off is not what was intended by the BOI when granting the
tax benefits. Nevertheless, the Revenue Department viewed otherwise and appealed
the matter with the Supreme Court. The final verdict from the Supreme Court is now
still pending and will remain so when it comes August 2013.
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What this entails is that the Revenue Department must challenge all taxpayers who
did not net off the BOI profit against the BOI loss and assess for additional tax when
issuing their tax assessment letter. Our recent experience has shown that taxpayers
from various industries, including
including electronics, automotive, and pharmaceutical
devices have been facing this issue.
Taxpayers who receive the tax assessment letter but disagree with the assessment
are reminded that they have 30 calendar days deadline to appeal the Revenue
Department’s assessment.
assessment. Upon receipt of the assessment letter, please ensure that
necessary actions are undertaken if you disagree with the assessment so that the
appeal letter can be submitted to the Revenue Department within the 30 calendar
days deadline.
Based on several
several precedence cases, appealing the assessment of the Revenue
Department requires prompt action by taxpayers and the preparation process can be
tedious. We are happy to discuss the cases and share our viewpoints upon request
during a face-to-face
face
meeting.
For further information, please contact:
- Ms. Ornjira Tangwongyodying at : ornjira.tangwongyodying
[email protected] or +66 (0)2 344
1118
- Mr. Niphan Srisukhumbowornchai at : niphan.srisukhumbowornchai
[email protected] or +66
(0)2 344 1435
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