Crime Construction Firm Director Arrested for Using 522 Fake Tax Invoices, Causing Over 10 Million

[Georgealbert]

 

Picture courtesy of Matichon.

 

Police have arrested a senior executive of a construction company accused of using hundreds of fraudulent tax invoices to unlawfully claim VAT credits, resulting in losses to the government exceeding 10 million baht.

 

Mr Phongsak 49, a director and authorised signatory of Alex Built Co., Ltd., was apprehended by officers from the Economic Crime Suppression Division (ECD) on 8 June in front of his residence in Moo 5, Bang Krang subdistrict, Mueang district, Nonthaburi Province. The arrest was carried out under a warrant issued by the Thonburi Criminal Court (No. 189/2568, dated 11 February 2025).

 

The operation was led by Pol Col Tattapoom Jaruprach, Commander of the ECD, with support from Pol Col Naruephon Karuna and Pol Lt Col Wannalop Rattanawong of ECD Sub-Division 2.

 

The case stems from an investigation by the Nonthaburi Area Revenue Office 2, which uncovered evidence that Alex Built Co., Ltd. had submitted a total of 522 falsified tax invoices allegedly issued by various other companies. These invoices were used to inflate the company’s input tax claims, significantly reducing its payable value-added tax (VAT).

 

Authorities determined that these forged documents were used to fraudulently claim tax deductions totalling 10,730,768 baht, prompting a formal complaint by revenue officials and the initiation of criminal proceedings.

 

Mr Phongsak is charged with “jointly using forged tax invoices or unlawfully issued tax invoices to claim tax credits,” a serious offence under both tax and criminal law.

 

During questioning, the suspect denied all charges. However, police say sufficient documentary evidence has been gathered to support the prosecution. He has since been handed over to investigators at ECD Sub-Division 2 for further legal proceedings.

 

The arrest is part of a broader crackdown on tax evasion and economic crimes, which the ECD says continues to undermine public revenues and harm fair business practices. Authorities have vowed to pursue both individuals and companies involved in similar fraudulent activities.

 

 

  Adapted by Asean Now from Matichon 2025-06-09

 

 

 

[JimHuaHin]

Is there anyone in Thailand who is not corrupt?

[Briggsy]

This is a fairly easy fraud to uncover and the risk/reward coefficient should have suggested it was not worth it. 

 

Why is it easy to uncover? Because if the fraudster is reducing his VAT liability, the (actually non-existent) correspondent in the transaction should have an increased VAT liability, all traceable using invoice numbers, tax point dates and company VAT registrations.

[Watawattana]

On 6/9/2025 at 9:17 AM, Briggsy said:

This is a fairly easy fraud to uncover and the risk/reward coefficient should have suggested it was not worth it. 

 

Why is it easy to uncover? Because if the fraudster is reducing his VAT liability, the (actually non-existent) correspondent in the transaction should have an increased VAT liability, all traceable using invoice numbers, tax point dates and company VAT registrations.

Thanks for the explanation.  What would be the better way to do it?  

 

Asking for a friend... 🤪

[Briggsy]

2 hours ago, Watawattana said:

What would be the better way to do it?  

If you your friend wanted to defraud the taxman, you could try 

 

understating cash receipts

writing off bad debts that you were actually paid

commingling and charging personal expenditure to business expenditure 

 

[ChaiyaTH]

7 minutes ago, Briggsy said:

If you your friend wanted to defraud the taxman, you could try 

 

understating cash receipts

writing off bad debts that you were actually paid

commingling and charging personal expenditure to business expenditure 

 

Has zero to do with VAT fraud.

[ChaiyaTH]

2 hours ago, Watawattana said:

Thanks for the explanation.  What would be the better way to do it?  

 

Asking for a friend... 🤪

None, you do not mess with VAT anywhere.

[Briggsy]

3 hours ago, ChaiyaTH said:

Has zero to do with VAT fraud.

Correct. 

 

Has zero to do with my reply to @Watawattana's post.