Thailand to tax residents’ foreign income irrespective of remittance

[astral]

Bangkok Post 2nd Dec 2004

PM: Revamp for Elite Card

The troubled Thailand Elite Card programme is poised for a major revamp after failing to meet initial sales targets and drawing complaints from members over shoddy service, according to Prime Minister Thaksin Shinawatra.

The project failed to attract as many members as earlier expected due to the complications inherent in dealing with a wide variety of service providers.

"The Elite Card, as a service provider, must integrate a wide array of offerings provided by many different agencies. Clients have not received good service at times. But do not criticise it just now. It is undergoing improvements," Mr Thaksin said.

The Elite Card programme has signed up some 660 members who have forked over one million baht per card. Benefits include fast-track immigration processing, special discounts on hotels, golf course fees and spas as well as limited land ownership rights for foreigners.

But sales have lagged well short of the initial target of one million users within five years, and an investigation is currently pending into alleged irregularities in international media ad spending.

Somchainuk Engtrakul, the chairman of Thai Privilege Card (TPC), the agency set up to run the programme, said member complaints mostly came at the early stages of the programme, when cardholders asked for services without going through the main call centre.

He said TPC would improve co-operation with Thai Airways International, hotels and spa operators.

"The prime minister understands that we plan to focus on quality, instead of looking to build up membership numbers," Mr Somchainuk said.

He said TPC now had ample cashflow of around 17 million baht per month, and had not sought further government financial support. He added that it had so far generated some 600 million baht in foreign currency earnings for the country.

"The Elite Card programme could be like having a licence to print foreign currency. I do not understand why the media like to attack it," Mr Somchainuk said.

He said the controversy regarding media spending arose after CNN ran ads before formal contracts were signed with TPC.

"[CNN] acted in good faith. But the real contract had not yet been signed. We plan to settle everything this year so that the programme can be fully run," Mr Somchainuk said.

The investigation centred on who had authorised the purchase of some 147 million baht worth of advertising for the Thailand Elite Card on CNN and in Time, Fortune and Japan's President magazine.

Mr Somchainuk said TPC planned to continue its international marketing efforts, and would explore advertising opportunities with other media conglomerates besides Time Warner, the parent company of CNN.

[astral]

"The Elite Card programme could be like having a licence to print foreign currency. I do not understand why the media like to attack it," Mr Somchainuk said.

<{POST_SNAPBACK}>

This clearly shows how they view the programme.

No real intention to provide service.............

If he cannot understand the criticism then he does not deserve to be in charge.

So much for Toxin's CEO policy.

[ovenman]

Spin, spin, spin...

[Thetyim]

So, it landed on one engine? Glad I wasn't on it!

Bangkok Post 2nd Dec 2004

He said TPC now had ample cashflow of around 17 million baht per month, and had not sought further government financial support.

Have I missed something ?

How does it generate a monthly income ?

[Thetyim]

Sorry about that previous post.

I managed to include a quote from another thread.

Is it supposed to do that ?

[cdnvic]

Bangkok Post 2nd Dec 2004

The Elite Card programme has signed up some 660 members who have forked over one million baht per card.

Let's see..... only 999,440 more members to sign up to hit the target!

Bangkok Post 2nd Dec 2004

He said TPC now had ample cashflow of around 17 million baht per month, and had not sought further government financial support.

Have I missed something ?

How does it generate a monthly income ?

Interest on deposits.

cv

[Axel]

Have I missed something ?

How does it generate a monthly income ?

<{POST_SNAPBACK}>

If 17 million are flowing out every month, could this be called cashflow?

[nogutsnoapplepie]

You were saying?

[george]

PM concedes problems with Elite Card scheme

BANGKOK: -- Prime Minister Thaksin Shinawatra admitted yesterday that the government's Elite Card scheme for foreign businesspeople had run into difficulties, but blamed the private sector for the problems.

While hotly denying reports that some holders of the Bt1 million cards were claiming that they had been duped by government advertising, the prime minister conceded that a number of private companies participating in the scheme were failing to provide full cooperation.

Aimed at foreign businesspeople and dignitaries, the Elite Card scheme offers what the government has promised are unique privileges, including free membership of golf clubs and spas, and free medical check-ups.

Mr. Thaksin said that the scheme was now being improved, and that it was premature for people to criticize it.

--TNA 2004-12-02

[The Coder]

...ample cashflow of around 17 million baht per month...

Have I missed something ?

How does it generate a monthly income ?

<{POST_SNAPBACK}>

This could be quite telling. It would suggest they have signed up 204 suckers (204 divided by 12 months of operation equals 17 per month). That means the majority of the 660 cards in circulation are give aways/favors. It also suggests the advertising debacle alone chewed up 147 of the 204 million accrued revenue meaning they are very seriously in the red and sinking deeply in debt.

It's also ominous 660 members has not gone up as this same number was quoted back in September! No doubt the recent news on the card has been very damaging to future prospects and they are now trying to conceal this by now "focusing on quality instead of building up numbers".

[Axel]

....

Mr. Thaksin said that the scheme was now being improved, and that it was premature for people to criticize it.

--TNA 2004-12-02

<{POST_SNAPBACK}>

Now if this is not good news. LOL

Btw, wonder what the complains are.

E.g. no land privileges as promised, would be imho the biggest error.

Hotel discounts, forget it, I get better rates calling directly.

Golf clubs? Never heard from any member having used this.

Discounted tickets on TG F and C-class. Many peole prefer other airlines, even Mr. Thaksin, when not using his 'airforce 1' claimed b4 that TG sucks.

I myself decided long ago not to buy the card, but go along occasionally with a member, when travelling together. Compliments there, limo-service and check-in works perfect.

Upon return, two ladies, ah club representatives, do wait at the airplane's door,

collect your passport and luggage tag, drive you to and walk you through the immigration counter, there is no stop for the pax, 1 rep. signales the immigration officer that she has the p/ports, the other one brings you to the lounge, next to the customs-area. Shortly after they pick you up, either with your luggage on a trolley in front of the lounge, or already stowed in the boot of the waiting limo.

And they return your p/port properly stamped.

So, a compliment here, albeit the price tag of 1 million is by far too high.

[qwertyuiop]

....

Mr. Thaksin said that the scheme was now being improved, and that it was premature for people to criticize it.

--TNA 2004-12-02

<{POST_SNAPBACK}>

Now if this is not good news. LOL

Btw, wonder what the complains are.

E.g. no land privileges as promised, would be imho the biggest error.

Hotel discounts, forget it, I get better rates calling directly.

Golf clubs? Never heard from any member having used this.

Discounted tickets on TG F and C-class. Many peole prefer other airlines, even Mr. Thaksin, when not using his 'airforce 1' claimed b4 that TG sucks.

I myself decided long ago not to buy the card, but go along occasionally with a member, when travelling together. Compliments there, limo-service and check-in works perfect.

Upon return, two ladies, ah club representatives, do wait at the airplane's door,

collect your passport and luggage tag, drive you to and walk you through the immigration counter, there is no stop for the pax, 1 rep. signales the immigration officer that she has the p/ports, the other one brings you to the lounge, next to the customs-area. Shortly after they pick you up, either with your luggage on a trolley in front of the lounge, or already stowed in the boot of the waiting limo.

And they return your p/port properly stamped.

So, a compliment here, albeit the price tag of 1 million is by far too high.

<{POST_SNAPBACK}>

But you were already getting that sort of service at the airport if traveling first Class anyways. Certainly I was and I am no dignatary or VIP.

I would be met off the plane walked/driven to a special area in immigration. Processed no questions asked and straight to a waiting hotel limo.

Granted I would have to pay for the limo but a million baht is a lot of limos.

Surely most of this target group would not be traveling in the back of the plane anyhow?

As for the golf i remember wonderful photo ops of various thais upon the launch of the building of new courses purely for elite card holders.

Even if this did not materialise it would have cost something plus all the salaries and cars etc etc etc. Add this to the advertising budget- surely they did not just use CNN and the marketing trips around the world and it is easy to see that this 14million baht cash flow per month does not go very far.

As someone has already pointed out the number of 660 card holders has renmained steady in all reportings these last few months.

If successful the scheme can generate revenues but I see plenty of ways that this revenue and then some can be spent by all and sundrie wanting a piece of the action. The key would be to control the cost structure.

i would not suggest that they are necessarily awash in red ink just yet but they will have to be careul

[RDN]

Sorry about that previous post.

I managed to include a quote from another thread.

Is it supposed to do that ?

<{POST_SNAPBACK}>

You must've hit the "+QUOTE" button in the other thread. Useful feature, but dangerous!

To be certain you are only including one post in your reply, just hit the "REPLY" button.

And you can see what your reply will look like by hitting the "Preview Post" button, before the "Add Reply" button .

[dr_Pat_Pong]

Spin, spin, spin... 

<{POST_SNAPBACK}>

Wank ... wank ... wank

[RDN]

Spin, spin, spin... 

<{POST_SNAPBACK}>

Wank ... wank ... wank

<{POST_SNAPBACK}>

I was gonna say that ... I was gonna say that ... I was gonna say that ...

..... as well as limited land ownership rights for foreigners......

<{POST_SNAPBACK}>

I thought this had been withdrawn ?

[Payne]

The Elite Card sounded like a very good idea when it was announced and the government is to be commended for thinking up such a scheme. However, I didn't puchase one because the benefits didn't sound substantial enough.

What I would like to see are more benefits related to immigration and home ownership plus special service at government offices. If you have limited time like I do, it is well worth paying for good service. Perhaps a special card for say baht 5 million which would come with a driving and freehold home ownership permit plus a police body guard would be a good idea.

[RDN]

The Elite Card sounded like a very good idea when it was announced and the government is to be commended for thinking up such a scheme. However, I didn't puchase one because the benefits didn't sound substantial enough.

What I would like to see are more benefits related to immigration and home ownership plus special service at government offices. If you have limited time like I do, it is well worth paying for good service. Perhaps a special card for say baht 5 million which would come with a driving and freehold home ownership permit plus a police body guard would be a good idea.

<{POST_SNAPBACK}>

A driving what? Range? Instructor?

24 hour police body guard?

[dr_Pat_Pong]

The Elite Card sounded like a very good idea when it was announced and the government is to be commended for thinking up such a scheme. However, I didn't puchase one because the benefits didn't sound substantial enough.

What I would like to see are more benefits related to immigration and home ownership plus special service at government offices. If you have limited time like I do, it is well worth paying for good service. Perhaps a special card for say baht 5 million which would come with a driving and freehold home ownership permit plus a police body guard would be a good idea.

<{POST_SNAPBACK}>

A driving what? Range? Instructor?

24 hour police body guard?

<{POST_SNAPBACK}>

An ambient claim maybe ? It is even wilder than Thaksin's original somewhat optimistic idea for the Elite program.

[jackr]

Let's see..... only 999,440 more members to sign up to hit the target!

1,000,000 minus 660 is 999,340

[Thetyim]

Let's see..... only 999,440 more members to sign up to hit the target!

1,000,000 minus 660 is 999,340

Maybe he could get a job as an Elite Card accountant

[p_brownstone]

If successful the scheme can generate revenues but I see plenty of ways that this revenue and then some can be spent by all and sundrie wanting a piece of the action. The key would be to control the cost structure.

i would not suggest that they are necessarily awash in red ink just yet but they will have to be careul

I have always wondered how this scheme can possibly survive simply because the only "Revenue" it generates is:

a) From the initial Sale, i.e. Baht 1 Million per Card

From Income on investment of that initial payment

Even if every one of the Cards issued to date was paid for (and we know that many were not) and all the Capital invested, a Fund of Baht 660 Million Baht would only produce Revenue of Baht 5.5 million a month ........... if they received a return of 10% on the investment - something else which is very unlikely.

I can see no other possible source of Income - am I missing something?

Outgoings must be huge, quite apart from the Advertising Expenses which have already been itemised.

"Free Air Tickets" are not free - someone has to reimburse the National Carrier even at Cost.

Then there is the cost of Offices on Sathorn, Staff, Cars and the "Roadshow" freebies for Executives.

Spas and Golf Courses etc. are not providing Free membership and Fees, why should they? So again the Card Company has to reimburse the Private Sector (so maligned by our Dear Leader as the cause for all the Cards problems).

I just cannot see how the scheme can possibly fund itself except in the classic Ponzi fashion - by using income from new Sales to pay for current expenses; and all Sales have now dried up as the problems and broken promises became more generally known.

[Baaksida]

Is it true, what I've heard, that from 2005 on a life buffalo will be added to the Elite Card privileges? (Just to have something valuable for ones money...)

[PvtDick]

Thaksin Concedes Problems With Elite Card Scheme, Blames private sector for the problems

And you know when Thaksin actually concedes there's a problem, it's gotta be BIG one.

[Dakhar]

No Land,

no purchase

[dr_Pat_Pong]

No Land,

no purchase

<{POST_SNAPBACK}>

No nuffin'

[kreon]

Thaksin Concedes Problems With Elite Card Scheme, Blames private sector for the problems

And you know when Thaksin actually concedes there's a problem, it's gotta be BIG one.

<{POST_SNAPBACK}>

why didn't he know the idea was useless from the start

where did all the money go? obviously the farlangs as useal can kiss their $$$$ goodbye!

as always they have these grandiose ideas so that they fleece some more money in their pockets!

[et33.com]

if me got that kind of spare money

me get a nice thai wife for meself

for what you wanna to be "elite"

keep a low profile and enjoy your life...

[gerry1011]

Don't forget that for most of the Elite Members, the VISA is probably the most interesting aspect.

For the people who are wealthy enough, don't want to marry a thai girl, are too young to have a retiree visa, don't want to work here, and don't plan to make any business (yes it exists) (you know, these guys who only spend money), the Elite member visa is perfect.

Some might say that 1 million is very expensive for a visa...

But, for some, 1 million is not a lot of money at all.

And for 1 million, no problem with immigration, no need to create a (often fake) company (with all the associated problems), no need to risk a (costly) marriage, no monthly visa runs, ... A good solution after all. But not accessible for everyone.

The idea of the Elite Card is good.

Can the members fully trust the people (or the governement) behind the sheme?

Of course not.

But since it is only 1 million they probably don't care...

[dr_Pat_Pong]

Don't forget that for most of the Elite Members, the VISA is probably the most interesting aspect.

For the people who are wealthy enough, don't want to marry a thai girl, are too young to have a retiree visa, don't want to work here, and don't plan to make any business (yes it exists) (you know, these guys who only spend money), the Elite member visa is perfect.

Some might say that 1 million is very expensive for a visa...

But, for some, 1 million is not a lot of money at all.

And for 1 million, no problem with immigration, no need to create a (often fake) company (with all the associated problems), no need to risk a (costly) marriage, no monthly visa runs, ... A good solution after all. But not accessible for everyone.

The idea of the Elite Card is good.

Can the members fully trust the people (or the governement) behind the sheme?

Of course not.

But since it is only 1 million they probably don't care...

<{POST_SNAPBACK}>

I'm told that they've stopped selling them.

[PvtDick]

I drove past the Elite Card office the other day, it looked like it was closed for a complete renovation. No sign of any business being done there.