Connect with us

Banking

Thai Central Bank investigates tax dodging scheme for VIP accounts

According to Finance Minister Apisak Tantivorawong, some small banks have advised their customers to evade the 15% withholding tax when their earned interest income are reaching 20,000 baht

Boris Sullivan

Published

on

The Bank of Thailand is investigating to find out whether some commercial banks or their staff are engaged in a malpractice of advising their customers with big cash deposits to avoid paying income tax on bank interests which exceed 40,000 baht.

Finance Minister Apisak Tantivorawong said some small banks have advised their customers to evade the 15% withholding tax when their earned interest income are reaching 20,000 baht.

They told their customers to close their bank accounts and then open new savings account instead to dodge the 15% withholding tax, he said.

He said interest on savings deposit is counted daily and will be paid to savers twice a year.

So when the interest income is approaching 20,000 baht, these banks will notify their customers to close their savings account and open new accounts to dodge the taxes, he said.

The minister said he has ordered the Revenue Department to plug a loophole in this tax exemption which might be the abolishment of the tax exemption, and the amendment of the regulation to require people earning up to 20,000 baht in interest income to attach documents for tax exemption in the submission of their annual tax forms.

Mr Ronnadol Noomnont, the central bank’s deputy governor supervising financial institutions, said Monday (Sept 25) that the central bank was told about the alleged malpractice by the Finance Ministry and has been investigating the issue.

He said that the central bank was trying to find out whether the alleged malpractice was widespread or limited within some commercial banks or among some bank staffers who wanted to take special care of their VIP customers.

He added that the central bank would also coordinate with the Revenue Department to look into the matter as well.

If the alleged malpractice was verified, Mr Ronnadol said that the central bank would warn the banks concerned to fix the problem and to strictly adhere to good governance. He did not spell out what punitive measures to be taken against the banks in question.

Comments

Asean

12 Things to Know about the ASEAN Catalytic Green Finance Facility (ACGF)

The ACGF is an ASEAN Infrastructure Fund initiative managed by ADB’s Southeast Asia Department Innovation Hub. It helps Southeast Asian governments prepare and finance infrastructure projects promoting environmental sustainability and contributing to climate change goals.

Asian Development Bank

Published

on

Southeast Asia faces an infrastructure investment shortfall of more than $100 billion a year, which may have worsened amid the COVID-19 pandemic.

Loading...
(more…)

Continue Reading

Banking

Thai cabinet approves 350 billion baht Aid for COVID-hit Businesses

Thailand unveiled new measures to help small and medium COVID-hit businesses in the tourism industry hit by a liquidity crunch.

Olivier Languepin

Published

on

The Thai cabinet has approved assistance worth 350 billion baht($11 Billion) to help businesses affected by COVID-19 with soft loans and asset warehousing.

Loading...
(more…)

Continue Reading

Banking

APAC Banks to Face Portfolio Valuation Losses As Yields Rise

The latest data suggest that Fitch-rated banks in Hong Kong, India, Indonesia, Malaysia and Taiwan have the largest AFS securities portfolios, and display particular sensitivity to changes in yields.

Avatar

Published

on

Fitch Ratings-Hong Kong/Singapore-21 March 2021: A rise in yields for long-dated sovereign bonds will result in near-term losses for Asia-Pacific (APAC) banks as they recognise valuation changes on their available-for-sale (AFS) bond portfolios, but the capital impact should be manageable for most rated banks, says Fitch Ratings.

Loading...
(more…)

Continue Reading

Most Viewed

Subscribe via Email

Enter your email address to subscribe and receive notifications of new posts by email.

Join 13,957 other subscribers

Latest

Trending