Tax Alert: Compliance as Key

TRD Focus: Strengthening Tax Collection Through AI-Driven Analytics

Due to limited manpower for traditional tax audits, the TRD has begun leveraging Big Data and AI-enabled analytics as core tools to enhance audit effectiveness and administrative efficiency. The aim is to strengthen risk assessment capabilities and move towards more targeted audits of high-risk cases.

The TRD’s priorities include:

• Risk-based targeting: Using Big Data and AI analytics to identify high-risk taxpayers and expand the tax base, allowing manpower to be focused where potential tax collection is greatest.
• Operational efficiency: Automating processes and reducing manual intervention to improve productivity, consistency, and speed in tax administration.
  
  
• “Quick Big Win” scheme: A fast-track mechanism enabling qualifying “good taxpayer” to receive tax refunds within a significantly shortened timeframe, without or only a light tax audit. The scheme is designed to enhance taxpayer liquidity while allowing the TRD to reallocate audit manpower more efficiently.
  
  
• Expansion of e-tax and online systems: Promoting digital filing and electronic data submission to provide data for the AI-driven analytics system.
  
  

Taxpayer Focus: Compliance, Cost/Risk Management, and Efficiency

For sustainability, compliance is key to meeting challenges, and taxpayers should proactively position themselves as “good taxpayers” by maintaining strong compliance with Thai tax laws. 

A compliant profile not only mitigates audit risk, but also reduces administrative burdens and costs, and increases efficiency.

Taxpayers’ priorities include:

• Compliance as a strategic priority: High-quality, consistent compliance is essential, as data submitted directly into the TRD’s Big Data and AI-driven risk assessment models must be accurate to reduce the risk of detection by the system.
  
  
• Reduced administrative burden and improved liquidity: Taxpayers recognised as “good taxpayer” may benefit from significantly faster tax refunds without being subject to tax audits. Faster tax refunds will improve taxpayer’s cash flows.
  
  
• Online and e-tax readiness: Taxpayers must ensure transparent electronic filing and accurate data submission to achieve “good taxpayer” status and to reduce the risk of being selected for audit.

For further questions, please contact: 

• Narumol Limprasert – Tax and Transfer Pricing Partner at Narumol.Limprasert@th.gt.com or +66 2 205 8222
• Phatsawut Fueangwutthiron – Transfer Pricing Manager at Phatsawut.fueangwutthiron@th.gt.com or +66 2 205 8273