TWO for the price of one…..even better when there is no price at all!

Here I am, in Bangkok. It is now the second half of the month of October as I write this. I've been here since late September and virtually every day since I've been here, there have been half page advertisements in the Bangkok Post publicizing the Post Forum 2015: "Rebuilding the Thai Economy: Meet the Economic Team". Featured speakers at this event were the Deputy Prime Minister, the Finance, Transport, Industry and Information and Communication Technology Ministers and a Member of the State Enterprises Policy Commission. Hey, this is a rather impressive assemblage of speakers at a 3+hour session for which, at the bottom of the half page daily promotion, were the words, in very, very fine print: 'by invitation, only'. Naturally, I tried to find the right contact to use in garnering an invitation. Alas, I discovered that some truly important personages - including some high up the Bangkok Post 'food chain' could not even get invitations for themselves. Darn, this would have been great for both meeting my California CPA continuing education requirements as well as filling up a good portion of my next Tax India International essay.

But suddenly, towards the 15 October Forum date, the half page ads changed somewhat, announcing that there would be live internet streaming video. And so I watched - on an iPad and Mac Air, both of which needed earphones because while the video was great the audio sucked - and on my brand new, Android-based, Huawei smart phone, for which there was absolutely no audio except if you had earphones. While I am at it, let me state that it is my firm belief that if you have nothing good to say about something or someone, don't say it. Thus, I will not say anything about either the Huawei phone or the Android system. I take the same approach to Steve Jobs, with whom I had personal dealings in the 1980s - since I have nothing good to say about him, I will say nothing. On the other hand, I sing praises about my iPhone!

Somkid Jatusripitak, Deputy Prime Minister, opened the Forum discussing reduction of income inequality while increasing productivity gains and strengthening the capital market in order to encourage investment. Apisak Tantivorawong, the Finance Minister, discussed facilitation of private sector investment and cutting tax burdens.

Both gentlemen discussed in very broad, very generic words, the same thing that virtually every government throughout the world seems to be saying since the Thomas Piketty book about income inequality. Only let us face it: they said absolutely nothing! Was anything substantive suggested? Are you kidding? They spoke words that were, in essence, meaningless! And the audience: so many empty seats that one could not count (where were those who were ínvited' ? How come they did not show up when others truly wished to attend? If this were to be directed to an international audience (simultaneous translation was provided by earphone for the attendees and on the earphone necessary internet streaming video), then how come I was able to count more attendees sleeping (7) than non-Thai faces in attendance (5)?

The Thai baht is falling. The military junta is now entrenching itself for at least a couple of more years……and the second group of drafters of yet another new Thailand constitution does not appear to recognize the fact that a constitution larger in verbiage than the first few of Ian Flemming's James Bond mysteries will simply not work (while Flemming's escapism novels most certainly did work!).

I did watch all three hours of the event, paying utmost attention to what was on my iPad, knowing full and well that the Bangkok Post would provide complete, detailed summary in its next day edition. Thus, I took no notes - a pleasure, indeed!

My advice to the Post for the future: make sure that if it is invitation only (to keep out cynics like me, perhaps?) that you fill the place up rather than have so many empty seats. My advice to those speaking: don't talk in meaningless platitudes about what the problems are - we all know what the problems are. Speak instead, about what you intend to do about these problems!

Things change? Nah, they stay the same! Including the following…..

Niphat Bhukkanasut, the 72 year old former Director General of the Treasury Department of Thailand, the guy in charge of collecting taxes in the country has come under scrutiny by the National Anti-Corruption Commission for apparently building up a 49 million baht accumulation in savings accounts. Now I ask you (as the NAAC asks Mr. Niphat) how does a civil servant not coming from a well-to-do background accumulate so much cash? Certainly not from salary…but what about amounts coming from the firm awarded a contract from his department to develop land? That's an entirely different matter!

Enough said about Thailand - let's get on to other areas…..

The soon to be published November edition of News China Magazine reports that the Shanghai branch of Apple Computer, the manufacturer of the computer upon which I type this essay, had evaded 452 million RMB in 2013. A recent investigation, according to the journal, alleges that Apple's Shanghai branch fabricated costs (probably taken from the costs that Toshiba shaved from its accounting to show so much more profit in Japan the same year!) and simultaneously omitted disclosure of full income. Apple is now going to be subject to 65 million RMB in back taxes and late fees.

And in an ongoing investigation, Shanghai Daily, in its 3 October edition, claims that 533 officials from various and sundry tax departments throughout the country are being punished for being perhaps a bit too cozy with tax agents since the start of the year. Tax agents are the intermediaries between the government and business. They were set up to be an independent body to collect taxes and file tax returns but that system has apparently been so abused that it too will change (sooner or later? Likely later!). 58 local tax departments were found to have leased offices to tax agents or provided them for free. For free? That's what concerns the government!

Who's got 'My Number'?

The 12 October issue of Japan Times reports that the My Number law goes into action by mid-October with 55 million numbers going out to households by registered mail. My Number is the new 12 digit personal identification system in Japan that will now have to be attached to every resident's official services with the government - especially tax and social security services. It will also be used by recipients (assuming they all receive them) to reduce the impending sales tax increase at supermarkets and food stores once the increase to 10 percent goes into effect. Is Japan going through a numerical overload? What with several numbers in use already (can any one agency truly coordinate and simplify all of this?), not to mention the over-abundance of passwords we are all required to use (if not remember - and I certainly do not have that remembering capability!).

My Number legislation was passed in 2013 to facilitate previously (and current) links between separate information on taxation, social security and disaster relief benefits. It is supposedly there to help authorities combat tax evasion and illegal receipt of benefit payments. Banks are supposedly to start linking My Number to individual bank account holders, with their permission, early next year. 'With their permission'…..what happens if substantial My Number recipients refuse permission? There is considerable concern over privacy and leakage of personal information from this system - especially in a mass mailing to 55 million individuals. In the long run this probably makes a whole lot of sense but in the short run, especially when one considers the way it is starting, this is a potentially rather large can of worms…..Only time will tell just how wormy this one turns out to be. Be sure to read my early 2016 articles to find out!

Voluntary Disclosure in Korea

I like Korea (South, that is!) tax law. The entire tax code is less than 100 pages. Compare that to the current 74,608 pages of US tax law….. If the thing you want to do is not found within those 100 pages then you can't do it - pure and simple!

Anyway, unlike the Streamlined Procedures of the U.S. for which there likely will be an end but no one has any idea when that will take place, South Korea's Voluntary Disclosure Program started on 1 October 2015 and lasts through 31 March 2016. Six months - no more, no less. If you disclose your offshore, previously undeclared assets/income, then you will have to pay taxes from previously undeclared income as well as interest but that's it!

Additional tax penalties will be waived. Fines are waived. Exemption from the violation being made public is guaranteed as well as exemption from criminal prosecution. Except…….if you have committed substantial embezzlement and malpractice. Then and only then will you not be able to avail yourself of the Korean Voluntary Disclosure program.

Korea is expecting that it will start receiving reciprocal information from the U.S. in 2016 and from approximately 50 other nations starting in 2017. I do not know about those 50 other nations but I would be willing to wager a substantial amount that there will be no US reciprocity in 2016 as the US banks still have little idea of their bank client nationalities. I'm not saying that there will never be any reciprocity but I simply cannot see it coming in 2016. What do you, my readers, think? Any comments???