Thailand’s tax dispute resolution framework has undergone a significant transformation with the enactment of the Act Establishing the Tax Court and the Procedure for Tax Cases (No. 3) B.E. 2568. Published in the Government Gazette on May 27, 2025, the amended act will come into force on November 24, 2025, which is 180 days after its publication. The amended act marks a pivotal shift in the jurisdiction and procedures of the Tax Court, most notably by empowering it to adjudicate certain criminal tax cases for the first time.

Background and Rationale

The Tax Court was originally established in 1985 as a specialized forum to handle complex tax disputes, including those related to revenue, customs, and excise taxes. The creation of the Tax Court recognized the need for judicial expertise in tax law, given its technical and specialized nature. The latest amendment is designed to address procedural inefficiencies, modernize court processes, and align Thailand’s tax litigation system with international standards. The reform demonstrates Thailand’s commitment to enhancing the efficiency, transparency, and fairness of its tax dispute resolution mechanisms.

Key Amendments and Provisions

Six of the key changes in the amendment are highlighted below.

• Expansion of jurisdiction to criminal tax cases. The most significant change is the extension of the Tax Court’s jurisdiction to include criminal offenses under the Revenue Code, customs law, excise tax law, and other tax-related laws that may be specified by royal decree. New sections in the act explicitly grant the Tax Court authority to hear and decide criminal tax cases, so individuals and entities accused of criminal tax evasion or other tax-related crimes will now have their cases heard by judges with specialized tax expertise. The law also clarifies the Tax Court’s jurisdiction when a single act constitutes multiple offenses (some tax-related, some not) or when there are multiple related offenses. Cases that fall under the jurisdiction of the Juvenile and Family Court remain excluded from the Tax Court’s criminal jurisdiction.
• Revised definition of “tax case.” The definition of a “tax case” has been streamlined to mean any case under the jurisdiction of the Tax Court, reflecting the court’s new authority to hear criminal matters.
• Adaptation of procedural laws. The procedural framework for the Tax Court has been updated to accommodate criminal cases. Where the act or its regulations do not provide specific procedures, the Civil Procedure Code, the Criminal Procedure Code, or the law on the establishment and procedure of khwaeng-level courts will apply as appropriate. This ensures that the Tax Court can effectively manage both civil and criminal tax cases using established legal standards.
• Appeals process. Amendments to the appeals process clarify that appeals in criminal tax cases will follow the Criminal Procedure Code, while civil tax cases will continue under the Civil Procedure Code.
• Procedure for nonappearance in noncriminal cases. For noncriminal tax cases, if a party is notified of a hearing but fails to appear, it is their responsibility to ascertain the next hearing date. Failure to do so will be deemed as having been informed of the proceedings.
• Transitional provisions for pending criminal cases. Criminal tax cases already pending in other courts before the effective date of the amended act will continue in those courts until final judgment, ensuring continuity and preventing disruption of ongoing proceedings.

Procedural Regulations

To supplement the act, which lacks detailed procedural rules for conducting tax cases and managing evidence, the chief judge of the Central Tax Court (currently the only operational tax court in Thailand) will issue specific regulations. These regulations, requiring the approval of the chief justice of the Supreme Court, will define court procedures and the criteria for evidence admissibility and evaluation. According to information from the Central Tax Court, these regulations are currently being drafted and are undergoing internal discussion and debate.

Outlook

The primary objective of this legislative update is to consolidate the adjudication of criminal tax offenses within the specialized Tax Court system. By doing so, Thailand aims to leverage the expertise of tax judges for both civil and criminal tax disputes, promoting consistency, efficiency, and fairness in tax litigation. The other amendments are designed to ensure procedural coherence and a smooth transition to the new system.

With the enactment of this law, Thailand’s Tax Court will soon serve as the central forum for both civil and criminal tax cases, marking a significant step forward in the country’s legal and judicial landscape for tax matters. This reform is expected to enhance the quality and effectiveness of tax dispute resolution, benefiting taxpayers, legal practitioners, and the broader business community.