Gold shops which have revenues over 10 million baht a year and do not have proper accounting books will face money laundering charge and have their assets frozen under a new tax law being mulled by the Revenue Department.
Revenue Department director-general Prasong Poonthanet said that out of some 7,000 gold shops, 75 of them which are major operators have proper accounting books.
Combined gold turnover of all the gold shops in the country are estimated at between 400-500 billion baht annually but only between 200-300 billion baht are properly taxed, said Mr Prasong, adding that when the E-payment system is applied as of June 1 the Revenue Department will be able to keep tap on the turnover and revenues of gold shops.
He recommended all gold shops to register as business entities which will make them pay less income tax than paying personal income tax.
Mr Chitti Tangsitpakdee, president of the Association of Gold Traders, said that most gold shop operators were concerned that they would pay more income taxes if they are registered as legal entities.
“But if the Revenue Department assures that they will pay less tax, then gold shop operators will be willing to cooperate,” said Mr Chitti.
Global gold prices remain volatile and steadily drop in anticipation that the US Federal Reserves may increase interest rate at its next meeting. Gold price is expected to register US$1,300 per ounce and domestic gold price is expected to reach 22,000 baht per baht weight if the baht currency weakens to 36 baht against a US dollar.
