Thailand - Criminal Cases in Tax and Customs Matters Under Jurisdiction of Tax Court

After deciding to allow the collection of Value Added Tax (VAT) on low-value imported goods, the Thai Cabinet approved another bill extending the jurisdiction of the Tax Court to examine criminal-related cases regarding tax and customs matters.

This change's primary purpose is to bring all criminal, civil, tax, and customs-related cases under the jurisdiction of a single court, where they will be handled with the appropriate expertise and understanding.

Critical Aspects of the Bill

Current rules in Thailand define that tax cases come under the jurisdiction of the central Tax Court, which specializes in tax law, tax accounting, and double taxation agreements. However, criminal tax cases fall under the jurisdiction of the criminal courts, which do not specialize in these cases, especially considering the differences between tax and other types of crimes.

The Tax Court will handle all criminal and civil cases concerning tax issues. In addition, all criminal tax cases falling under the jurisdiction of the Tax Court pending before other courts at the time of the Bill's enactment will be handed over to the Tax Court for further processing.

Although the Cabinet has approved the Bill, the voting and adoption process is still ongoing. The following steps in this process are for the House of Representatives and the Senate to review and approve the Bill. Once both regulatory bodies approve and adopt the Bill, the final step is publication in the Official Gazette.

Conclusion

This Bill significantly impacts the Thai court system and all parties involved in tax and customs cases. It allows them to settle their cases in a single court with the authority to act in both civil and criminal cases related to tax and customs issues, making the process more straightforward.

Source: Baker McKenzie