BOT URGED TO FACILITATE MONEY FLOW FOR MULTINATIONALS

       The Finance Ministry will ask the Bank of Thailand (BOT) to loosen regulations for multinational firms to enable them to bring money into the country or repatriate it in a bid to promote the country as their regional headquarters.
       Deputy Finance Minister Pradit Phataraprasit said that he would consult with the central bank later.
       Winai Wittawatkaravet, directorgeneral of the Revenue Department, said the department would not offer more tax incentives but would relax tax regulations for large firms.
       Earlier, the ministry had cut corporate income tax to 10 per cent from the regular 30 per cent for companies establishing regional operating headquarters in Thailand.
       Finance Minister Korn Chatikavanij yesterday said he will today submit to the Cabinet a proposal to cut the excise tax rate on Thai traditional spas to zero from 10 per cent.
       "I believe the Cabinet will agree to support the tourism industry," he said. Currently the Excise Department collects tax from about 1,000 spa operators but tax collection is less than Bt1 billion annually, said Korn.
       The spa business has long been asking for a tax cut. Spa businesses operating in hospitals or temples would benefit from the rate reduction.
       However, massage parlours will still be taxed 10 per cent, said Korn.
       Meanwhile, Winai said his department will keep a close eye on construction companies to prevent them from dodging tax.
       He warned that those who evade tax would be punished and accounting firms that help them to avoid tax payment would also be penalised.
       He said the department had found that some accounting firms had helped some construction firms to evade tax by making a false report report on expenditures due to the cost of oil.
       "We will not just look at receipts but we will dig into the reasonable cost of oil in the construction businesses," he said.

       Finance Minister Korn Chatikavanij yesterday said he will today submit to the Cabinet a proposal to cut the excise tax rate on Thai traditional spas to zero from 10 per cent.