OBSERVATION ON THE IMPLEMENTATION OF TAX EDUCATION MEASURES FOR BUSINESSES EMPLOYING OLDER WORKERS

Abstract

This Observation on the Implementation of Tax education Measures for Businesses Employing Older Workers. has the objective to study the concept, theory and legal measure in the application of tax deduction measure of business establishment in employing the elderly. The study includes the advantages and disadvantages as well as the legal problem of the business establishment and the elderly that have been legally affected, the problem of obstacle to the promotion of the employment of the elderly by the business establishment. The study will be conducted by the analysis of the Act on the Elderly B. E. 2546 (2003 A.D.), and the Royal Decree issued under the Revenue Code No. 639 B. E. 2560.

          As a result , there are some observations relating to the introduction of the application of tax deduction for the business establishment hiring the elderly. In order to apply the tax deduction measure by the business establishment, the State has promulgated the Royal Decree which is the legislation promulgated by the executive branch and can be conveniently modified. This method can be considered as a better choice for the State to issue the Royal Decree. For the congruency of this point, the State should amend the Act on the Elderly in the area of the benefit of the elderly and the business establishment hiring the elderly. It will be a supporting measure to promote the business establishment to hire more elderly employees. In addition, there are some more observations about the Royal Decree that it is not congruent with the current social and economic situations, for example, the business establishment under Article 3 of the Royal Decree issued under the Revenue Code relating to revenue tax exemptions provides that only limited liability company and registered ordinary partnership are entitled to such exemption. It does not cover the ordinary partnership or group of individuals. It also limits the percentage of employment of the elderly employees to not more than 15% of the total number of employees which is not congruent with the present context of social and economic situation. Another observation is related to the application of Article 4(2) which specifically applies to the elderly employees who are already employed by the limited liability company and registered limited partnership or have previously registered with the Department of Labor Employment.