Chonburi Customs and Tax Department warns foreigners on tax issues

The Chonburi Area 2 Tax Department is responsible for four locations including Sriracha, Bangsaen, Sattahip and Koh Srichang. Its major function is to collect taxes and incriminate violators who infringe on tax laws.

An expert on levies and tax laws, Mr. Kitiwat Suksawas revealed that there are many misunderstandings and negative inclinations between foreign investors and the Customs Department today. The investors do not have enough accurate information on excise regulations and laws and the Customs Office has not provided opportunities to educate these investors on tax laws. Foreign investors have in large, had a negative outlook towards government bureaucracy due to their reputation and history of inaccuracy

Khun Kitiwat cited two examples, one of the cases involved investors who unintentionally violated excise laws. The first case occurred with a French investor and his Thai girlfriend. They had invested in a perfume business by importing perfume essence from France and mixing it with their own creation. They intended to set up their business as a small family business; however, they did not realize that the perfume business they were running had to be clarified with the excise department. This is because perfume is listed as a taxable good. Without intending to, they operated their business illegally for an entire year until the customs department officials approached them and accused them of breaching certain decrees by not paying duty on imported perfumes. They had to pay a fine of 80,000 baht for possession and trading of their taxable goods. This upset the French investor and seeded a negative mind set against the Thai bureaucratic office.

Another example concerns a garment distributor in Mike Shopping Mall, South Pattaya. The owner operated a branded clothing store and was currently facing severe business problems due to the economic crisis. Her suppliers suggested a scheme involving hefty discounts to improve her sales. Her slashed prices caught the eye of the customs officers who mistook the cheap price tag of the brand as a sign of piracy. They apprehended her and detained her on charges of selling copied merchandise. She was eventually released after proving her innocence.