Thanks to Graeme Sheard, KPMG for his interesting presentation on the development of the tax situation in Thailand and ASEAN at the Holiday Inn.
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| Presented by Graeme Sheard, KPMG Tax Partner |
Here is Doc Iain Corness article for Pattaya Mail:
The Automotive FocusGroup (AFG) invited Graeme Sheard from KPMG to address the group at the latestmeeting last week, held in the Holiday Inn.
The buzz words forKPMG are �cutting through complexity�, and corporate taxation is certainlycomplex, though Graeme Sheard did manage to show where the tunnel was, and thefaint flicker of light at the end of it.
With KPMG being a verylarge conglomerate, they have been able to carry out annual surveys and thenextrapolate the results into trends. Forthe automotive industry, the prediction is that it will be quite different bythe next decade with mobility solutions to counter traffic problems � perhaps youwill not need to �own� a car, but just pick up and drop off in the cities. There will be specific vehicles for specificenvironments � the advent of �city cars� is here already, but will increase. �Green� vehicles will increase � electric,hybrid and fuel cell. All these willbring about major changes in the supply chain, and also bring in new industryparticipants, particularly in the battery/electric motors area.
Graeme, with hiscrystal ball, also predicted that as the customs revenue falls with Free TradeAgreements (FTA�s), there will be other taxes applied to counteract thegovernment shortfall. The most obviousone is VAT, and predictions of an increase from 7 to 10 percent were made.
He made mention ofsome other FTA�s which are currently being hammered out, including India, theEuropean Union, ASEAN and Peru. GraemeSheard did ask if any of the AFG members were trading with Peru, but at thisstage the answer was in the negative!
The veritableminefield in the regulations of working within an FTA were shown, with advicebeing given to ensure there is an indemnification clause in any agreements, aspenalties can be very high.
He also suggested thatfor some members of the AFG, the penalties of importing under an FTA can besuch that it may even be better just to import at the domestic rate of tax.
Altogether, this wasone of the better addresses that the AFG has provided for its members.
James Beeson, thePresident of the AFG mentioned that there has been a change in direction, asregarding speakers. The AFG committeehas determined that if they have the subject matter or topic, then it is easierto identify and find appropriate speakers to talk, rather than find the speakerand then find a topic. It is alsoexpected that this method should also expand the network of the AFG, as it willbe necessary to find some speakers outside of their current network.
Those who areinterested in contacting the AFG can do so through jabeeson@truemail.co.th.