Incomplete Accounting Records and Lost Documents

In the event that an entity loses its documents or has incomplete accounting records what is the legal and tax impact and what steps must an entity undertake to rectify this?

Keywords: Thailand, Accounting, Revenue Department, Ministry of Commerce, Lost Documents, Incomplete Accounting Records

Accounting Act

Under the Accounting Act B.E. 2543 (2000), the accounts and the documents must be kept at the place of business, or the regular place of production or storage of goods, or the regular place of work.

Should the accounts or the documents be lost or damaged, the Ministry of Commerce (‘MOC’) should be notified within 15 days.

The penalty for not complying with the above is a fine not exceeding five thousand Baht. However, the liability for making a false statement with regards to the accounts and the documents is imprisonment for a term not exceeding six months, a minimum fine of ten thousand Baht, or both.

Revenue Department

The Company should request replacement tax invoices from vendors to present to the Revenue Department to support any tax filings.

Where there are insufficient accounting records or documentation the Revenue Department Officer can assess tax at the rate of 5 percent of gross income or sales. If gross income or sales cannot be determined, the Officer shall have the power to assess by comparing with the gross amount of the previous accounting period. If the amount of the previous accounting period cannot be determined, the Officer shall assess as deems appropriate.

If there has been an underpayment of tax as a result of missing, incomplete or inaccurate accounting records there is a surcharge of up to two times the amount of missing tax.

Process to report missing or lost documents

1. Prepare documents to give notice at a police station that the documents have been lost;

  • Power of Atthorney
  • Details for lost documents

2. Submit the police report and SorBorChor 2 at the MOC;

  • Power of Attorney (Copy ID card of Director and copy ID card of Attorney)
  • SBC2
  • Details of lost documents
  • Affidavit of Company
  • The police will issue an ‘Evidence of Notice’

3. The MOC will consider the case having reviewed the documents submitted; and

4. Finally, the MOC will send notice of the fine.

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