Remedy for BOI Companies?
On 16 May 2016, the Supreme Court of Thailand interpreted the Investment Promotion Act B.E. 2520 (IPA) in a manner which was seen by many as breaching the reasonable expectations and reliance interest of many foreign as well as domestic investors. Reasoning that the IPA does not stipulate any specific method in the computation of net profit, the Supreme Court ruled that the Revenue Code's provisions must prevail with regard the computation method of net profit and loss deriving from BOI-promoted activities. The Revenue Department's position, in effect, prevails. However, certain legal practitioners and scholars were and have remained doubtful whether this interpretation of the IPA would prevail in future decisions.