Checks On Foreign Business Tieups In Phuket

[george]

Checks on foreign business tieups in Phuket

PHUKET: -- A fact-finding effort is underway in Phuket to compile information about local businesses in which Thai people are hired by foreigners as their nominees - a practice considered suspicious and possibly illegal.

Provincial governor Wichai Phrai-sa-ngob, who ordered the investigation, said he was not discriminating against foreign investors, but guarding against illegal nomination which exploited loopholes in Thai laws for personal gain.

Under the business nomination law, foreigners can hold no more than 49-per-cent ownership of any business they jointly invest in with Thais. An ongoing practice is that foreigners later gain control over Thais illegally, and enjoy a lower tax burden than when holding a minority ownership.

To scrutinise foreign businesses, the local revenue office is checking on their tax payments, while the treasury office is scrutinising ownership of condominium space. Immigration police are checking visa and residence status.

Local authorities and the Interior Ministry will look into all information and decide on what to do if the fact-finding reveals illegal business nomination activities, said the governor.

There are now 19,653 joint Thai-foreign businesses in Phuket, which have invested around Bt62 million.

Patong Municipality mayor Chairat Sukbhal dismissed reports most hotels on the island resort were owned by foreigners, saying most were operated as joint ventures, or under management staffed by foreign executives.

The provincial business and trade office said a regulation requiring joint Thai-foreign businesses to produce bank accounts with a high minimum amount of money deposited had been revoked, because it could not effectively serve as proof of substantial business funding.

"In most cases, the money was withdrawn immediately from bank accounts once they were offered to Thai authorities as proof," office head Weerachai Tantiwatthanawallop said.

The provincial land office said legal action would be taken against any businesses found to have been operated illegally with a majority of foreign ownership, because Thai land laws imposed strict sanctions on foreigners owning land plots in Thailand.

-- The Nation 2009-09-02

[alstaxi]

Ahhh, the first crack down of the day has been announced, possibly upgraded to a witch hunt, tomorrow.

[xminator]

I'm sorry to say it, but the business of Phuket wouldnt be anywhere close to the quality or diversity without the farang joint thing. Of course, 15000 nudle shops with the 4900 wheel-cap shops next to them would have some novelty, but ...

[Windmillresident]

sometimes this all gets rather silly.

[shawndoc]

This is just a result of the poor economy. This way they can drive up some extra tax revenue and satisfy local Thai business owners currently struggling.

As long as they stick with what's described, going after only those joint businesses that aren't on the up and up, I see no big problem.

[expatudon08]

whats so funny is the banner adds on this post build a home in Thailand

never been a good idea but its getting worse not only do you have to screen your partner but the Thai government is becoming more anti western month buy month

Vietnam is booming compared to the backward ideas on investment from Thai government

[Big Guy]

62 million baht invested in 19000 businesses, that is only 3150bt each business. Figures dont sound right to me.

[ukrules]

62 million baht invested in 19000 businesses, that is only 3150bt each business. Figures dont sound right to me.

That's the first thing I thought, the original article was obviously written by some form of moron. Complete lack of basic fact checking and in this case intelligence.

[ScubaBuddha]

Boy, this is getting worse and worse. It is really starting to feel like they want all us farang out of their country.

The thing about a loophole is, it needs to be closed by changing the law, not by punishing those who used it. By definition a loophole is a legal circumvention to a laws intent. So change the laws but don't punish people because "It might be illegal." <deleted> am I saying, this is Thailand.

And what is the exception for Americans on this 49% rule?

Edited September 1, 2009 by Scubabuddha

[EndofDays]

whats so funny is the banner adds on this post build a home in Thailand

never been a good idea but its getting worse not only do you have to screen your partner but the Thai government is becoming more anti western month buy month

Vietnam is booming compared to the backward ideas on investment from Thai government

Is there a Vietnam version of Thaivisa by any chance?

[reallyok]

I have said it before, and will say it again! The wording is................"Crackdown on Foreign business" not "Crackdown on Falang business" .

And................................Oh dear !!! not another "Crackdown".

Its about time this government did something real for the country and its underprivilaged population and stopped strutting about like the cockbird in the chicken pen.

These incessant "Crackdowns" are utterly stupid, designed to convince the population that they are being looked after, when its really those in power who are being looked after.

[Mitchbkk]

62 million baht invested in 19000 businesses, that is only 3150bt each business. Figures dont sound right to me.

It's time to make business. only 3150THB to become rich!!! Or perhaps i will wait a promotion: Buy one business, get one free

[minxwhale]

62 million baht invested in 19000 businesses, that is only 3150bt each business. Figures dont sound right to me.

I was a business editor at the Nation for a few years. The reporters can't be bothered to such complicated math and nowadays their overworked editors haven't the time to check for all of their mistakes.

But a lot of times, these figures come straight from the authorities and Thai journalists are afraid to ask any questions that might embarrass any official.

That's why nothing can be trusted in print at the Nation or the Post.

The 62 million baht figure is much to low for so many businesses.

[minxwhale]

I have said it before, and will say it again! The wording is................"Crackdown on Foreign business" not "Crackdown on Falang business" .

And................................Oh dear !!! not another "Crackdown".

Its about time this government did something real for the country and its underprivilaged population and stopped strutting about like the cockbird in the chicken pen.

These incessant "Crackdowns" are utterly stupid, designed to convince the population that they are being looked after, when its really those in power who are being looked after.

You are right.

It's the classic effort to divert public attention from the other homemade ills in this country that are ignored year-in and year-out. The poor infrastructure, education and other problems are constantly ignored so that the fat cats can stay rich and the poor, well you get the picture.

[Zpete]

I am pretty sure there are better pastures for play in S.E.A. than hassle prone Thailand, where farangs are seemingly NOT wanted.

Vietnam, Laos, Cambodia, Malaysia and possibly cheapest of all for expats, according to a world survey, Philippines, well Manila.

[oz93666]

62 million baht invested in 19000 businesses, that is only 3150bt each business. Figures dont sound right to me.

It's time to make business. only 3150THB to become rich!!! Or perhaps i will wait a promotion: Buy one business, get one free

comes to 31,500Bt/business....still not much, I'm sure an investigation will show these businesses bring money to Thailand not take it out

[basjke]

62 million baht invested in 19000 businesses, that is only 3150bt each business. Figures dont sound right to me.

It's time to make business. only 3150THB to become rich!!! Or perhaps i will wait a promotion: Buy one business, get one free

comes to 31,500Bt/business....still not much, I'm sure an investigation will show these businesses bring money to Thailand not take it out

When I see your calculation I assume you also work for the government.

[alant]

I have said it before, and will say it again! The wording is................"Crackdown on Foreign business" not "Crackdown on Falang business" .

And................................Oh dear !!! not another "Crackdown".

Its about time this government did something real for the country and its underprivilaged population and stopped strutting about like the cockbird in the chicken pen.

These incessant "Crackdowns" are utterly stupid, designed to convince the population that they are being looked after, when its really those in power who are being looked after.

but the government IS doing something!

gamn johnnie foreigner is in danger of giving kun thai an income that exceeds day to day living thus empowering the people which could lead to loss of control... aaarggg

Edited September 2, 2009 by alant

[dsfbrit]

Ahhh, the first crack down of the day has been announced, possibly upgraded to a witch hunt, tomorrow.

My thoughts exactly

[Crash999]

Wonder how many of these companies are property owners. Probably a significant amount.

There have been a number of so-called crackdowns announced over the years, scaring owners and harming the property market. And each time nothing has come of it aside from a period of confusion and slow property sales. If they really want to crack down then they'll change the law and (hopefully) grandfather in all previous arrangements. But of course those involved in related businesses wouldn't be too pleased so I doubt much will change.

[pieter11]

Don't you know Thailand by now, this is typical one individuals idea to try and impress the rest. It will kick off with massive interest untill lunch time, then we "sabai" for the rest of the week and forget all about it because we have a very busy weekend coming up. Stop being negative, the Thai's love the frarangs, they just want a finger in the "pie" as well.

I have said it before, and will say it again! The wording is................"Crackdown on Foreign business" not "Crackdown on Falang business" .

And................................Oh dear !!! not another "Crackdown".

Its about time this government did something real for the country and its underprivilaged population and stopped strutting about like the cockbird in the chicken pen.

These incessant "Crackdowns" are utterly stupid, designed to convince the population that they are being looked after, when its really those in power who are being looked after.

You are right.

It's the classic effort to divert public attention from the other homemade ills in this country that are ignored year-in and year-out. The poor infrastructure, education and other problems are constantly ignored so that the fat cats can stay rich and the poor, well you get the picture.

[Indra]

62 million baht invested in 19000 businesses, that is only 3150bt each business. Figures dont sound right to me.

It's time to make business. only 3150THB to become rich!!! Or perhaps i will wait a promotion: Buy one business, get one free

comes to 31,500Bt/business....still not much, I'm sure an investigation will show these businesses bring money to Thailand not take it out

Well, perhaps the reporter meant 62 billion? Hence 3.15 million/business?

Or perhaps, 62 million is just the registered figure? I register my company in Singapore and I stated the paid capital as S$88; It is completely legal here and my consultant told me that it only affects me when I am attending a tender.

BTW, I am wondering, when Thaksin was on power, did you guys had so many complains like this?

I am asking because I really don't know about the situation before 2006 coup.

Edited September 2, 2009 by Indra

[stevehaigh]

Boy, this is getting worse and worse. It is really starting to feel like they want all us farang out of their country.

they've publicized this particular crackdown every month for the part 3 years or so

[Felt 35]

Hmm...most have been out but not official for a while. Whole management team of joint Thai/Foreign company where a Thai friend of us work went for a week long research trip to Vietnam last week.

Employ some 20 Thais, but no foreigners. The company is 100% legal, and is in a niche which have been only growing the last 10 years and they are doing well, but as far I have heard the management complain about to many bumps on the road. For each new move they do to improve their business a new bump is set up.

[NanLaew]

Another nail in the coffin..., etc.

Couldn't happen to a nicer place. Phuket, with more land title paperwork than there is land. It will take them years to clean up that mess but doubtless some low-order foreigners will be targeted, exhibited and prosecuted as a token gesture while the more untouchable, organised and professional land bandits (and the local government officials on their payroll) will all get a free pass.

[DTiger]

@george

Would it be possible to get the complete link when you give us news?

I don't yet know if their search page is really bad, or if they deleted that article.

Thanks

[chefshane]

I am pretty sure there are better pastures for play in S.E.A. than hassle prone Thailand, where farangs are seemingly NOT wanted.

Vietnam, Laos, Cambodia, Malaysia and possibly cheapest of all for expats, according to a world survey, Philippines, well Manila.

Yep, Malaysia.

Where a Malaysian lady from Singapore gets sentenced to a caning by religious fudamentalists (that run the law - and cannot be overturned by secular courts)

Or Manila - where you get shot and robbed if you don't own and know how to use a gun.

Cambodia is nice. But Very third world. Too third world actually.

Laos - good. But 30 years behind Thailand, if that. And a communist government. A very protectionist, anti foreign communist government.

And Vietnam. <laughs>

Yes. Go to Vietnam.

And write back to TV and let us know how it is living in Paradase.

LMAO

[lazygourmet]

62 million baht invested in 19000 businesses, that is only 3150bt each business. Figures dont sound right to me.

That's the first thing I thought, the original article was obviously written by some form of moron. Complete lack of basic fact checking and in this case intelligence.

Ditto...

[Sherlocke]

I wish my bank manager was called " Weerachai Tantiwatthanawallop"!

[dkstoney]

The whole problem here lies in the fact that even if you are married with a Thai it gives you no special status whereas in the US for example you're given a green card.