The tax appeal process really begins at the audit stage, which usually starts with a letter inviting the taxpayer to meet the officials or a summons under Section 19 of the Revenue Code requiring accounting and tax documents to be produced for examination. The summons must be issued within two years from the date the return was filed. Where there is evidence or reasonable cause to suspect an intention to evade tax, or where it is necessary for the purpose of a tax refund, the Director-General may approve an extension, but not beyond five years.
This stage is very important because it is the best opportunity to explain the facts and present evidence before the officials issue a notice of assessment. If the explanatory documents carry enough weight, an assessment may be avoided altogether. Having a tax law consultant help prepare the explanation from this stage is therefore of real practical value.
When you receive a notice of assessment (assessment form), check the following details immediately.
Under Section 30 of the Revenue Code, a person who receives a notice of assessment must file an appeal with the Commission of Appeal at the responsible Area Revenue Office within 30 days from the date of receiving the notice. The appeal must state:
Caution: The 30-day appeal period is a statutory time limit, and an appeal filed after it has expired may not be considered. Section 3 octo of the Revenue Code allows the Director-General to extend or postpone a time limit where the person under the duty is not in Thailand or has a necessary reason that prevents compliance with the time limit, and the Director-General considers it appropriate. This is not an automatic right, so an appeal should always be filed within the deadline. The time limits and appeal routes that apply to each case, and the effect of an appeal on the duty to pay tax, are explained on our tax assessment appeal page.
While the case is before the Commission of Appeal, the duty to pay the tax assessed remains, because Section 31 of the Revenue Code provides that an appeal is not a deferral of tax payment unless the Director-General grants permission to wait for the appeal decision or the court judgment. The appellant may therefore apply to the Director-General of the Revenue Department for a deferral of tax payment or for payment by installments under the criteria set by the Revenue Department, which is a matter for the Director-General’s discretion.
However, the surcharge of 1.5% per month (not exceeding the tax payable) continues to accrue for as long as the tax remains unpaid. So if, after assessing the situation, there is a chance of losing, paying part of the tax to reduce the surcharge may be a better strategy than waiting for the outcome of the appeal.
Under Section 30 (1) of the Revenue Code, where the assessment official’s office is in Bangkok, the Commission of Appeal consists of the Director-General or a representative, a representative of the Office of the Attorney General, and a representative of the Department of Provincial Administration. In other provinces, it consists of the provincial governor or a representative, the chief of the regional revenue office or a representative, and the Provincial Attorney General or a representative. In its proceedings, the Commission will:
How long the Commission takes varies with the complexity of the issues and documents in each matter. The appellant should comply fully with any summons or order under Section 32, because Section 33 provides that an appellant who fails to comply without justifiable reason loses the right to appeal against the appeal decision.
If the outcome before the Commission is unsatisfactory, the appellant has the right to appeal against the appeal decision to the Central Tax Court within 30 days from the date of being notified of the appeal decision, under Section 30 (2) of the Revenue Code together with Section 8 of the Act on the Establishment of and Procedure for Tax Court B.E. 2528 (1985), which provides that a case may be filed only after the appeal procedure has been followed and the appeal has been finally decided. Practical considerations:
Cases in the Central Tax Court are heard by judges who specialize in taxation, so the way tax law arguments are presented matters a great deal. Systematic preparation of the legal arguments and evidence by specialists in tax litigation therefore has a considerable effect on how the case is decided. The court-stage procedure, from the conditions before filing and the filing of the complaint through to the trial, is explained separately in our guide to filing a case in the Central Tax Court.
If the outcome in the Central Tax Court is still unsatisfactory, a party may appeal to the Court of Appeal for Specialized Cases under Section 24 of the Act on the Establishment of and Procedure for Tax Court, which applies the Civil Procedure Code with the necessary modifications. A further appeal against a judgment of the Court of Appeal for Specialized Cases to the Supreme Court is governed by Section 26, which applies the rules of the Civil Procedure Code, including the system under which an appeal to the Supreme Court requires the Supreme Court’s permission.
Supreme Court judgments in tax cases carry great value as precedent. Although the Thai legal system is not a common law system, in practice Supreme Court tax judgments are often cited by both the Revenue Department and taxpayers in cases with similar facts.
In more than 25 years in the legal profession, we have found that the common mistakes that can affect a taxpayer’s rights include:
Our specialist tax law consultants are available to advise you and assess your situation directly. Send us your information for a preliminary assessment, without obligation.