How the Act for the Establishment of and Procedure for the Tax Court (No. 3) B.E. 2568 (2025) Transforms Tax Dispute Litigation

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How the Act for the Establishment of and Procedure for the Tax Court (No. 3) B.E. 2568 (2025) Transforms Tax Dispute Litigation

Background

The litigation of tax disputes in Thailand has historically been governed by the Act for the Establishment of and Procedure for the Tax Court B.E. 2528 (1985) and the Regulation on Tax Cases B.E. 2544 (2001). Since having been enforced until the enforcement of their amendments, the Tax Court’s jurisdiction has been confined exclusively to civil matters. In cases involving both tax-related civil and criminal issues, plaintiffs have been required to bifurcate their proceedings, filing criminal complaints with criminal courts having jurisdiction over the cases while pursuing civil remedies through the Tax Court.

Legislative Reform

This procedural framework is set to undergo significant transformation under the Act for the Establishment of and Procedure for the Tax Court (No.3) B.E. 2568 (2025), which substantially expands the Tax Court’s jurisdiction to encompass criminal tax offenses. This expansion reflects the legislature’s recognition that adjudicating tax-related criminal matters requires specialized expertise in tax law and revenue collection systems.

Key Amendments

1. Expansion of Criminal Jurisdiction

The Tax Court is now vested with the authority to adjudicate criminal cases arising under the following statutes:

  • The Revenue Code
  • The Customs Act
  • The Excise Tax Act
  • Additional offenses as may be designated by the Royal Decree

Exception: Cases falling under the jurisdiction of the Juvenile and Family Court remain excluded from this expanded mandate.

close up photo of wooden gavel

Jurisdictional Guidelines:

  • Single Act, Multiple Violations: Where a single act violates multiple provisions of tax legislation, the Tax Court shall exercise comprehensive jurisdiction over the entire matter.
  • Multiple Acts: In cases involving multiple acts where some fall outside the Tax Court’s jurisdiction, the Tax Court possesses discretionary authority to either:
    • Consolidate and adjudicate all acts collectively; or
    • Exercise jurisdiction solely over matters within its competence while requiring plaintiffs to pursue separate proceedings in those jurisdictional courts for remaining offenses.

2. Procedural Law Modernization

The amendment introduces significant procedural reforms. Previously, tax cases were governed exclusively by the Civil Procedure Code applied mutatis mutandis. Under the revised framework, the Tax Court may now apply:

  • The Criminal Procedure Code (mutatis mutandis); and
  • Procedural rules governing district courts (mutatis mutandis)

This dual procedural framework provides the Tax Court with enhanced flexibility to address the hybrid nature of tax disputes effectively.

3. Court Hearing Notification Protocols

The Act establishes differentiated notification requirements:

General Civil Cases: Parties failing to appear at scheduled hearings bear responsibility for obtaining subsequent hearing dates from the Tax Court. Failure to do so results in constructive notice of future proceedings.

Criminal Cases: The aforementioned rule does not apply, ensuring enhanced due process protections in criminal tax matters.

Implementation Timeline

The Act for the Establishment of and Procedure for the Tax Court (No. 3) B.E. 2568 (2025), will enter into force 180 days after the date of publication in the Royal Gazette (25 May 2025). Importantly, the legislation does not apply retroactively to criminal tax cases already pending in other jurisdictional courts prior to the effective date.

Stakeholder Concerns and Future Considerations

During the legislative drafting process, certain stakeholders raised substantive concerns regarding the fundamental nature of tax dispute resolution. They argued that tax cases are inherently administrative disputes and that the current accusatorial system, adopted due to the Tax Court’s establishment preceding that of the administrative court, creates systemic disadvantages for private litigants contesting state authorities. These stakeholders advocated for adopting an inquisitorial system similar to that employed by the administrative court, arguing that the current framework places an undue evidentiary burden on individuals lacking the resources and access necessary to effectively challenge governmental determinations. While these proposals were not incorporated into the current amendment, given the legislation’s focused objective of ensuring specialized judicial expertise in criminal tax matters, such considerations remain significant and may inform future legislative reforms.

Conclusion

The Act for the Establishment of and Procedure for the Tax Court (No. 3) B.E. 2568 (2025) represents a meaningful evolution in Thailand’s tax dispute resolution framework. By consolidating both civil and criminal tax jurisdiction within a specialized court system, the legislation aims to enhance judicial efficiency and ensure that complex tax matters receive appropriate expert consideration. This reform establishes a foundation for more comprehensive future developments in Thai tax litigation.

Author: Panisa Suwanmatajarn, Managing Partner.

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