Gold shops told to join single-account scheme or face probe

The Revenue Department has asked defiant gold shops to enter single account system or else they could face money laundering probe.

According to the department, some 1,000 gold shops still refuse to register as legal entities, or enter the proper single-entry accounting system despite that the majority of 7,000 gold shops have registered.

Prasong Poontaneat, director-general of the department said this week that the department will submit information of these defiant gold shops to the Anti Money Laundering Office (AMLO) to handle.

He said gold shops which refused to adopt the single account system will face punishment under the anti money laundering law, which is severer than the revenue tax law.

Revenue Department chief Prasong Poontaneat

The department earlier said gold shops which have revenues over 10 million baht a year and do not have proper accounting books will face money laundering charge and have their assets frozen under a new tax law.

It said out of some 7,000 gold shops, 75 of them are major operators which already have proper accounting books.

Combined gold turnover of all the gold shops in the country are estimated at between 400-500 billion baht annually but only between 200-300 billion baht are properly taxed.

The Association of Gold Traders president earlier said that most gold shop operators were concerned that they will pay more income taxes if they are registered as legal entities.