Crime Major VAT Fraud Network Busted: Over 1 Billion Baht in Losses

[Georgealbert]

 

Picture courtesy of CIB

 

The Central Investigation Bureau (CIB) of the Royal Thai Police, in collaboration with the Revenue Department, has launched a high-profile crackdown dubbed the “Anti Tax Fraud Operation”, aimed at dismantling a sophisticated network involved in large-scale value-added tax (VAT) fraud. The operation uncovered fraudulent activities causing state losses exceeding 1 billion baht.

 

At the heart of the investigation is a company named S & M Brotherhood Co., Ltd., which claimed to operate in the import-export sector. According to authorities, the company and its affiliated entities fabricated a complex chain of fictitious trade transactions. These false records created the illusion of legitimate goods being bought and sold between companies, culminating in fabricated exports.

 

The ultimate objective was to exploit Thailand’s VAT refund system. Under current tax law, exporters are eligible to claim a 7% VAT refund on goods sold abroad. By submitting fraudulent export documentation and inflated invoices based on non-existent goods, the company successfully obtained substantial VAT refunds from the Revenue Department.

 

The Central Investigation Bureau, through its Economic Crime Suppression Division (ECSD), coordinated simultaneous raids and inspections, gathering vital evidence to support criminal proceedings.

 

“This is a significant blow against organised tax fraud,” a CIB spokesperson said. “The operation reflects our commitment to professional, impartial law enforcement and protecting the interests of the public.”

 

Investigations are ongoing, with authorities expected to pursue legal action against company directors and others involved in the scheme. The Revenue Department is also reviewing refund procedures to prevent similar abuses in the future.

 

  Adapted by Asean Now from CIB 2025-07-01