Thailand’s crackdown on nominee shareholders reaches Prachuap Khiri Khan and Phetchaburi

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Thailand’s crackdown on nominee shareholders has now reached Prachuap Khiri Khan and Phetchaburi with officials saying businesses located in both provinces are under investigation.

 

In an effort to regulate the country’s business sector and curb illegal land ownership practices, Thailand’s Business Development Department continues to widen its probe into nominee shareholders.

 

For years, some foreigners have exploited loopholes in Thai law by using local nominees to create companies solely for the purpose of owning land and other businesses.

 

The land is purchased and transferred into the name of said company.

 

Despite being illegal, the practice has been widespread in the past but is now firmly in the crosshairs of the authorities.

 

By Online Reporter

TOP: A view over Hua Hin. File photo

 

Full story: Hua Hin Today 2023-09-20

 

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[transam]

Hmmmm, the farangy's that live in "their" house belonging to "their company", may now have a problem looming.....????

[Eloquent pilgrim]

A4 size brown envelopes now mandatory

[Celsius]

7 minutes ago, transam said:

Hmmmm, the farangy's that live in "their" house belonging to "their company", may now have a problem looming.....????

 

House gone. Wife gone. MG gone

[JoePai]

25 minutes ago, Celsius said:

 

House gone. Wife gone. MG gone

Last two are a bonus 

[BE88]

Thailand’s crackdown Farang on nominee shareholders reaches Prachuap Khiri Khan and Phetchaburi

LOS now  WFM land      (Where Farang Money)

 

Edited September 20, 2023 by BE88

[hotchilli]

No problem I rent.

[FritsSikkink]

Could be a nice earner for the government as there are quite a lot of people doing this.

From the article:

"Violators of this law face severe repercussions, including imprisonment for up to three years or fines ranging from 100,000 to 1 million baht. Moreover, daily fines between 10,000 and 50,000 baht could be levied until the infringement ends."

[PETERTHEEATER]

As far as I know, the loophole in the law is just that. It is not illegal which is why it is exploited. This crackdown did not just 'reach' these two Provinces but is aimed directly at them since they have a large community of non-Thais resident many of who will hold their land plots and commercial sites in the name of a legal Company.

In case you think I am defending my own position my accommodation and land is owned solely by my Thai wife and we have been happily married for 47 years but lived in sin before marriage.????

More likely the authorities are chasing commercial businesses because prosecuting residential domestic owners would result in a significant impact on local ecomomies and scare off potential retirees.

[transam]

2 hours ago, FritsSikkink said:

Could be a nice earner for the government as there are quite a lot of people doing this.

From the article:

"Violators of this law face severe repercussions, including imprisonment for up to three years or fines ranging from 100,000 to 1 million baht. Moreover, daily fines between 10,000 and 50,000 baht could be levied until the infringement ends."

I recall on here, chaps gloating owning their own house bought via a dodgy company..........????

I wonder what they are thinking now................????

 

There could be a surge in houses for sale and companies closing....????

 

[topt]

43 minutes ago, transam said:

I recall on here, chaps gloating owning their own house bought via a dodgy company..........????

I wonder what they are thinking now................????

 

There could be a surge in houses for sale and companies closing....????

 

Disappointed in you transam. Taking pleasure out of others potential misfortune. 

Especially as I don't particularly remember "chaps gloating"..........

 

I partly agree with @PETERTHEEATER that it is probably more directed at businesses rather than individuals.

 

[BE88]

3 hours ago, FritsSikkink said:

Could be a nice earner for the government as there are quite a lot of people doing this.

From the article:

"Violators of this law face severe repercussions, including imprisonment for up to three years or fines ranging from 100,000 to 1 million baht. Moreover, daily fines between 10,000 and 50,000 baht could be levied until the infringement ends."

And lose the property which would be confiscated.

[KhunLA]

53 minutes ago, transam said:

I recall on here, chaps gloating owning their own house bought via a dodgy company..........????

I wonder what they are thinking now................????

 

There could be a surge in houses for sale and companies closing....????

 

Oh well, som naam naa

 

One has to wonder when people suggest and do something so illegal & stupid to put big money in.  

 

You can't fix stupid.

[KhunLA]

7 minutes ago, topt said:

Especially as I don't particularly remember "chaps gloating"..........

I do ... and they strongly recommended other to do.

[transam]

7 minutes ago, topt said:

Disappointed in you transam. Taking pleasure out of others potential misfortune. 

Especially as I don't particularly remember "chaps gloating"..........

 

I partly agree with @PETERTHEEATER that it is probably more directed at businesses rather than individuals.

 

Me, gloating, don't think so, the guys that were telling how they got their own house were the ones gloating, and folk like me were pointing out the pitfalls if things changed, and it seems now they are...

 

But me gloating, no, just posting facts...????

[topt]

5 minutes ago, KhunLA said:

I do ... and they strongly recommended other to do.

Well either I missed it or context but either way it's sad.

[impulse]

11 minutes ago, KhunLA said:

Oh well, som naam naa

 

One has to wonder when people suggest and do something so illegal & stupid to put big money in.  

 

You can't fix stupid.

Easy trap to fall into when there are so many real estate consultants and lawyers telling them how safe and simple it is.  

 

[impulse]

1 hour ago, PETERTHEEATER said:

More likely the authorities are chasing commercial businesses because prosecuting residential domestic owners would result in a significant impact on local ecomomies and scare off potential retirees.

I wonder if they're also chasing a developing demographic trend. 

 

Perhaps one or more nationalities going wild investing in dodgy real estate deals?

 

Edit:  And don't forget other nominee companies...

 

Edited September 20, 2023 by impulse

[KhunLA]

5 minutes ago, impulse said:

Easy trap to fall into when there are so many real estate consultants and lawyers telling them how safe and simple it is.  

The whole premise is illegal & unethical, aside from giving up control of your finances.  I find it really hard to believe so many actually do it.  Usually involves a tidy sum of money.  

 

 

[transam]

9 minutes ago, topt said:

Well either I missed it or context but either way it's sad.

It's not sad if those twisting the system for gain and bragging about it here get caught out.

It is a chance they took, if there was no risk we would probably have all done it....????

[KhunLA]

18 minutes ago, transam said:

Me, gloating, don't think so, the guys that were telling how they got their own house were the ones gloating, and folk like me were pointing out the pitfalls if things changed, and it seems now they are...

 

But me gloating, no, just posting facts...????

It really shouldn't be any surprise to anyone, as just about every year the announce yet another crackdown.

[transam]

1 minute ago, KhunLA said:

It really shouldn't be any surprise to anyone, as just about every year the announce yet another crackdown.

New PM, new ideas.........????

[impulse]

4 minutes ago, KhunLA said:

12 minutes ago, impulse said:

Easy trap to fall into when there are so many real estate consultants and lawyers telling them how safe and simple it is.  

The whole premise is illegal & unethical, aside from giving up control of your finances.  I find it really hard to believe so many actually do it.  Usually involves a tidy sum of money.  

The heart wants what the heart wants.  I don't see it as any riskier than taking a bride in any country.  But especially in a country where the candidates have a background so dis-similar to the ones we grew up with.

 

In fact, I suspect that a smaller percentage of nominee companies go sideways than the divorce rate.  But that's just a guess.

 

[phetphet]

8 minutes ago, transam said:

New PM, new ideas.........????

A property developer at that.

[KhunLA]

12 minutes ago, impulse said:

The heart wants what the heart wants.  I don't see it as any riskier than taking a bride in any country.  But especially in a country where the candidates have a background so dis-similar to the ones we grew up with.

 

In fact, I suspect that a smaller percentage of nominee companies go sideways than the divorce rate.  But that's just a guess.

 

Want to own your house, buy a condo.  Or don't risk losing you money, simply rent.

[impulse]

3 minutes ago, KhunLA said:

Want to own your house, buy a condo.  Or don't risk losing you money, simply rent.

That's easy to say, having read dozens (hundreds?) of posts in dozens of threads over the years.  But to a noob, who would blame them if they consulted with a real estate company or an attorney?  That's what they'd do back home, confident that they'd get honest advice and a clean deal.

 

Also, I'm curious...  What percentage of dodgy nominee companies have actually been caught out, and what percent of dodgy real estate deals have actually gone bad?  I suspect it's a small percentage, but again, that's a guess.

 

[transam]

9 minutes ago, impulse said:

That's easy to say, having read dozens (hundreds?) of posts in dozens of threads over the years.  But to a noob, who would blame them if they consulted with a real estate company or an attorney?  That's what they'd do back home, confident that they'd get honest advice and a clean deal.

 

Also, I'm curious...  What percentage of dodgy nominee companies have actually been caught out, and what percent of dodgy real estate deals have actually gone bad?  I suspect it's a small percentage, but again, that's a guess.

 

The thread is about what may happen now, not in the past...........????

[impulse]

15 minutes ago, transam said:

The thread is about what may happen now, not in the past...........

How many times in the past have we read about crackdowns on nominee companies and on dodgy real estate deals?

 

Tough to predict what this crackdown will ultimately mean, unless we know what happened in all the previous ones.  But we never seem to hear the results.  I wonder why that is?

 

[transam]

1 minute ago, impulse said:

How many times in the past have we read about crackdowns on nominee companies and on dodgy real estate deals?

 

Tough to predict what this crackdown will ultimately mean, unless we know what happened in all the previous ones.  But we never seem to hear the results.  I wonder why that is?

 

Don't think I recall a crackdown on farangy's using dodgy company's to do what they want, this sounds new to me, and if the new PM's private business is to do with property, then he 100% he knows about farangs buying property in the name of a company........???? .........

[KhunLA]

1 hour ago, impulse said:

That's easy to say, having read dozens (hundreds?) of posts in dozens of threads over the years.  But to a noob, who would blame them if they consulted with a real estate company or an attorney?  That's what they'd do back home, confident that they'd get honest advice and a clean deal.

 

Also, I'm curious...  What percentage of dodgy nominee companies have actually been caught out, and what percent of dodgy real estate deals have actually gone bad?  I suspect it's a small percentage, but again, that's a guess.

You're starting a company, you have no intention of working or producing, selling a product, to skirt a law.

 

Every idiot knows that isn't the correct thing to do.  And if a noob, you're taking on partners you don't know, and own more of than you do.

 

Let me invest in that one.  And people wonder why they get fail in life.

 

It amazes me that actually managed to get the funds to buy land & house.

Edited September 20, 2023 by KhunLA