PRIME MINISTER Prayut Chan-o-cha has ordered Finance Minister Apisak Tantivorawong to overhaul the Revenue Code which has been in force since the late 1930s, an informed source said.

Prayut made the move during Tuesday’s Cabinet meeting as members pondered how to collect back taxes from former prime minister Thaksin Shinawatra.

The Finance Ministry is expected to begin the task next week by consulting with the National Legislative Assembly’s whip Somchai Sawaengkarn and the PM’s Office Minister Suvit Maesincee, said the source.

The committee will then set up a draft bill which will be sent to the Cabinet and State Council for vetting. If it goes as planned, the bill will then be submitted for debate in Parliament.

Prayut wants it to become law during his term of office, according to the source.

The key points in the overhaul of the Revenue Code include making it simple, limiting tax officials’ discretionary power, reviewing tax allowances and tax assessment deadlines.

“The principle goal is simplicity, so we have to make our tax law achieve this goal,” said the source.

“The income tax assessment deadlines or statute of limitations should also be consistent with deadlines of tariffs and excise laws which have already been reviewed recently”, the source said. However, it will not change personal and corporate income tax rates nor change the VAT rate, the source added.

Over the last 30 years, there has been no big change in the Revenue Code, only minor amendments from time to time, said the source.

Economists and tax experts support the move, saying there are several loopholes in the current law.

‘Inconsistent interpretations’

“The biggest issue of the current law is inconsistent interpretation |by involved parties, resulting in frustrated taxpayers and tax injustice,” said Sakon Varanyuwatana, dean of Thammasat University’s Faculty of Economics. Anthony Visate Loh, a tax expert at Deloitte Touche Tohmatsu Jaiyos Advisory Co, echoed Sakon’s view saying that the law gave too much discretionary power to tax officials, the director-general of the Revenue Department in particular.

“This makes the interpretation of tax law inconsistent. The successor of the director-general often interpreted the law differently from his predecessor, making tax collection practice inconsistent and it often hurt interests of businesses unfairly,” Anthony said.

In a related development, former prime minister Yingluck Shinawatra called for fair treatment when asked about government efforts to collect back taxes from her brother Thaksin.

She said she did not understand why the government wanted to collect back taxes, although the Supreme Court had seized Thaksin’s assets worth Bt46 billion.

“It seems to me that the government is purposely going after one party. I hope justice will prevail and the law must be applied to everyone equally. The law should not be used by one party against another party. People expect that those who enforce the law will do it without discrimination,” Yingluck said.

Yingluck spoke out after Thaksin’s son Panthongtae asked what more the government wanted from the Shinawatra family after the legal case had been disposed of eight years ago.

Responding to the statement, Prayut said that Panthongtae should not complain about the government but should be prepared to speak in court.

Prayut also said he had asked the Finance Ministry to investigate why tax officials did not collect taxes from Thaksin. “I want to make the tax issue clear for the public I do not target anyone in particular,” he said.

In response to the Auditor-General demanding that tax officials collect back taxes from another 60 politicians, Prayut said the government will help officials to do their jobs.