Orient Thai Airways Accused Of Tax Evasion

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Orient Thai Airways Accused of Tax Evasion

Crime Suppression Division officers inspected two Boeing 747s parked at Phitsanulok airport which have had their engines removed, after reports of alleged tax-evasion.

The Crime Suppression Division or CSD searched two Boeing 747s parked at Phitsanulok airport and suspects that the owner has been secretly selling parts from the plane without paying the proper taxes.

The initial investigation found that the two planes belonged to the low-cost domestic airline, Orient Thai Airlines, which reported to the airport that the aircraft were parked at Phitsanulok dock for maintenance.

Investigators said the two planes were decommissioned long ago, and were painted grey to conceal the countries of origin and registration numbers.

They are now being seized for further investigation.

The Director of Phitsanulok Airport Kasem Intarasorn said documents had earlier been sent to the airline asking them to remove both planes. The airline supposedly promised to do so within a month.

Kasem said both planes have been docked since 2008 and were charged at a rate of about 1,000 baht per day.

He said the airport does not intervene in the process of checking parts and engines of other planes, and that this is done by the staff of the individual airlines.

He said the outcome of the case depends on the judgement of the CSD, and he urged the airline to clarify the situation to the press to protect the company's reputation.

Orient Thai CEO Udom Tantiprasongchai has denied the accusation.

He explained that the airline had sought proper permission to remove the engines of the decommissioned jets, and that the engines are now being kept at Don Muang Airport.

He elaborated that the rental contracts for the two Boeing jets had expired, but the owner refused to take them back, which left the airline with the burden of parking costs worth nearly a million baht a year.

Udom claims he is being targeted after receiving threats for not paying taxes for another decommissioned plane parked at U-tapao airport in Rayang.

He clarified that decommissioned jets are exempted from taxes.

-- Tan Network 2011-03-09