Revenue department develops data analytics to combat tax invoice fraud

The Director-General of the Revenue Department, Kulaya Tantitemit, announced the development of a data analytics system aimed at helping entrepreneurs integrate into the tax payment system and fight against falsified tax invoices. This announcement was made during a press conference alongside the Economic Crime Suppression Division.

Five gangs responsible for the production of fake value-added tax (VAT) invoices have been apprehended by a joint effort between the department and the division. The Revenue Department estimates that these fraudulent acts have led to a tax revenue loss of approximately 100 million baht, reported Bangkok Post.

The new data analytics system is a strategic move to bolster tax and customs administration. It will enable about 800,000 entrepreneurs to access the VAT payment system free of charge, according to Kulaya.

She emphasised that the creation of counterfeit VAT invoices is in violation of Section 90/4 of the Revenue Code, as it enables companies to under-report their income tax. Investigations have uncovered that other registered businesses have been issuing VAT invoices without carrying out any actual business transactions, said Kulaya.

“Such actions harm the VAT system, causing the government to lose a massive amount of revenue.”

In addition, Pol. Maj. Gen. Sophon Sarapat, the Deputy Commander of the Central Investigation Bureau, noted that entrepreneurs who engage in the illegal issuance or utilisation of VAT invoices are subjected to both civil and criminal penalties under Section 86/13 of the Revenue Code.

In civil cases, culprits are required to pay a fine that doubles the amount of tax, plus a surcharge of 1.5% interest per month, or a fraction of the tax amount. In criminal cases, offenders can be fined between 2,000 and 200,000 baht per tax invoice and could face prison sentences ranging from three months to seven years per invoice. Invoice finance manipulation has been on the rise in Thailand in recent year.

In related news, online vendors in Thailand were required to file taxes for 2024, with the Revenue Department mandating disclosure of income data from major platforms like Shopee and Lazada.