Thai Overseas Students Abusing Rights: Tax Evasion

[webfact]

TAX EVASION

Overseas students abusing rights

PIYANUCH THAMNUKASETCHAI

THE NATION

BANGKOK: -- Representatives of four luxury-car importing companies called on the Justice Ministry yesterday to look into reports of Thai overseas students allegedly abusing their right to bring cars into Thailand without having to pay fees and 200-per-cent taxes like proper importers have to.

They alleged that the students then sell the cars off at a cheap price.

The group led by Thas Nilmongkol submitted the complaint to Justice Minister Pracha Promnok and brought along some Ferrari, Porsche and Lotus models that might have been involved in the alleged importing scandal.

Thas said the scam began with people wanting to purchase luxury cars at a cheap price without caring whether it was imported legally or not. Therefore, he said, some took advantage of the legal loophole that allowed Thai students or citizens living overseas to bring their cars back home tax-free provided they can prove that they have owned it for at least a year and a half.

Once the car is brought back, the owner then needs to obtain permission from the Commerce Ministry's Department of Foreign Trade, Customs Department, Thai Industrial Standards Institute and the Land Transport Department.

Thas claimed that some state officials conspired by forging documents to help the car owner look qualified for permission. This procedure allowed the owner to pay just 30 per cent of the car's value in fees and taxes, in comparison to the 200 per cent paid by importers, and that the car can then be sold off in three years.

Thas said some students or citizens living overseas sold this right, and in some cases, they didn't even see or own the car. He said such abuse was damaging the car-import business and forcing the country to lose huge amounts from fees and taxes.

Plus, he said, it did not help if some state officials also conspired in forging documents that identified the cars as second-hand vehicles in order to cut down on taxes and fees. He claimed that at least 100 such cars were smuggled into Thailand every year.

Pracha, meanwhile, said that he would have Office of the Public Sector Anti-Corruption Commission look into this allegation, adding that the commission already had some information about this practice.

-- The Nation 2012-01-26

[anterian]

200% taxes, sounds a bit over the top, no wonder people try to evade them.

[IAMHERE]

Future leaders at work. Seems experience does pay off.

[Chupup]

So what else is new, they have been doing it for ages

[rwhoov]

I'm simply shocked that any Thai would be mixed up with anything that even hints at official corruption!

(tongue locked firmly in cheek)

[horisize]

Some people think a country makes money by taking from one pocket and stuffing into the other.... go figure!

[takatukaland]

I wonder they try to protect what with 200% tax surcharge

[mikecwm]

I'm simply shocked that any Thai would be mixed up with anything that even hints at official corruption!

(tongue locked firmly in cheek)

Yes, I also find it hard to believe that any Thai official would be involved in taking bribes.

While on the subject of "Tongues in cheeks". Well we are now anyway.

I notice on many N.Americal forums that when someone uses sarcasm (tongue in cheekism) they then feel the need to add (sarc) at the end.

Now maybe it's my Brit upbringing, but I thought one of the great benefits of sarcasm was that the recipient was meant to be left wondering "was that really sarcasm - or was he just being brutally honest with me?".

So why spoil the effect?

[alant]

200%

if thai good s were to be receive reciprocal duty from recipient countries would Thailand object?

[chainarong]

Tax evasion. Rings a bell somewhere , I remember one guy , sold he's company to a Singapore based crowd, he didn't pay any tax either, over time a few others haven't paid tax on, share sales and land sales and !!! Not an unusual act, not paying taxes.

[Rogermoore]

200% taxes, sounds a bit over the top, no wonder people try to evade them.

I agree all tax is to high collect your 7% sales tax and leave people alone

[renaissanc]

This case should be given to Thaksin to deal with. He is Thailand's anti-corruption and anti-tax evasion role model.

[daiwill60]

i was shocked when arriving in Thailand to see the amount of tax slapped on car imports. upto 400% i was told for luxury cars, and hardly any tax at all on two seater pick ups, which are classed as essential, as opposed to a 5 setear, and none on small motorcycles . Now I understand why two seater pick ups have so many people sitting in the box at the back and scooters have upto 4 at a time riding pillion.

[DP25]

I wonder they try to protect what with 200% tax surcharge

They tax imported cars because they want to build up and protect the domestic auto industry. They've been very successful at it, it's the largest industry in the country now and 99% of cars sold here were built in Thailand and they export large numbers to other countries. If you're rich you can import and pay the +200% tax, normal people have to buy a car or truck made in Thailand.

[8OA8]

In places like the UK, the fuel carries a huge amount of duty/tax/Vat.. whatever the vendors are told to collect from the motorist that increases the price you pay for a tankful to, say £150, which is an £120 increase from the actual fuel cost of £30 (guesstimate)

In Thailand if you want to drive a car and pay the real price of the actual cost of the tankful of fuel, say £30, you can do that . If however you would like to spend some of your money and drive an imported "Luxury Goods" car and still pay the real cost of fuel you can, but the government still need the tax revenue and unlike the UK they don't collect the £120 tax from you at the gas station. Therefore those that can afford the "Luxury" can also pay the Luxury tax up front when they purchase the car. This way those that can't afford the luxury goods aren't having to pay the £120 at the gas station every time they fill their low cost (non luxury) vehicle.

IMHO, It's a very fair system.

[Javabear]

I would also like some clarification on the reasoning behind the sky high tax rate on imported vehicles. For a car lover like myself, Thailand is like the land of mediocre cars.

[harrycallahan]

Toyota Australia have just announced 350 job losses at their manufacturing plant here; high Aussie dollar, falling sales. Didn't mention other countries charge 200 % import duties crushing any chance of export. Meanwhile a vehicle produced in Thailand could be exported to Australia with nothing like that kind of duty charged.

[Kilgore Trout]

I'm simply shocked that any Thai would be mixed up with anything that even hints at official corruption!

(tongue locked firmly in cheek)

Yes, I also find it hard to believe that any Thai official would be involved in taking bribes.

While on the subject of "Tongues in cheeks". Well we are now anyway.

I notice on many N.Americal forums that when someone uses sarcasm (tongue in cheekism) they then feel the need to add (sarc) at the end.

Now maybe it's my Brit upbringing, but I thought one of the great benefits of sarcasm was that the recipient was meant to be left wondering "was that really sarcasm - or was he just being brutally honest with me?".

So why spoil the effect?

Americans are forward, open and honest and don't BS around, don't want any confusion. Brits seem a bit more evasive; maybe its your proximity to the French.

Different strokes for different folks, right?

[sparebox2]

Not on students. Diplomats returning from overseas assignment often do the same, bring back luxury autos for resales. With their low govt salary, it is quite a handsome complement.

[sparebox2]

Toyota Australia have just announced 350 job losses at their manufacturing plant here; high Aussie dollar, falling sales. Didn't mention other countries charge 200 % import duties crushing any chance of export. Meanwhile a vehicle produced in Thailand could be exported to Australia with nothing like that kind of duty charged.

Life is unfair, so what.

You want same same both ways.

Oz come to Thailand no need visa. The reverse is not true.

You still want same same both ways?

[Misterwhisper]

200%

if thai good s were to be receive reciprocal duty from recipient countries would Thailand object?

Oh noooo! That, of course, would be a grave injustice and so totally unfair against Thailand! I have always said that certain regulations should be reciprocal in cases where it is deemed that the goods or citizens of one's own country do receive what is seen as unfair treatment in another country, whether that may be Thailand or not.

Foreigners not being allowed to buy and own land in Thailand? Very easy, Thais not allowed to buy and own land in our country. Foreigners only allowed to own 49% in their own company in Thailand (although usually putting up with 100% of the investment)? Very easy, Thais not allowed to own more than 49% in our country. A staggering 200% import tax on foreign cars? Very easy, 200% import tax on any cars imported from Thailand, regardless whether they are actually our own brands and are only manufactured in Thailand. Such procedure will Thailand soon bring down from its high horse.

[Theboy]

I'm simply shocked that any Thai would be mixed up with anything that even hints at official corruption!

(tongue locked firmly in cheek)

Yes, I also find it hard to believe that any Thai official would be involved in taking bribes.

While on the subject of "Tongues in cheeks". Well we are now anyway.

I notice on many N.Americal forums that when someone uses sarcasm (tongue in cheekism) they then feel the need to add (sarc) at the end.

Now maybe it's my Brit upbringing, but I thought one of the great benefits of sarcasm was that the recipient was meant to be left wondering "was that really sarcasm - or was he just being brutally honest with me?".

So why spoil the effect?

Americans are forward, open and honest and don't BS around, don't want any confusion. Brits seem a bit more evasive; maybe its your proximity to the French.

Different strokes for different folks, right?

Strange as I have beeen watching the machinations of the American political system in action on the TV recently .....................

Edited January 26, 2012 by metisdead
30) Do not modify someone else's post in your quoted reply, either with font or color changes, added emoticons, or altered wording.

[harrycallahan]

Toyota Australia have just announced 350 job losses at their manufacturing plant here; high Aussie dollar, falling sales. Didn't mention other countries charge 200 % import duties crushing any chance of export. Meanwhile a vehicle produced in Thailand could be exported to Australia with nothing like that kind of duty charged.

Life is unfair, so what.

You want same same both ways.

Oz come to Thailand no need visa. The reverse is not true.

You still want same same both ways?

No life can be fair, though 200 % import duties make it less fair.

We do need a visa which can be obtained on arrival.

Thais can become Australians.

[tfbpa]

@the Americans

I always thought they needed to have everything explained in extreme detail as they either don't know or cannot think for themselves...

Or maybe I looked at too many labels and signs in the USA and that it is in no way reflective of the way Americans are, not sure though...

[Baerboxer]

In places like the UK, the fuel carries a huge amount of duty/tax/Vat.. whatever the vendors are told to collect from the motorist that increases the price you pay for a tankful to, say £150, which is an £120 increase from the actual fuel cost of £30 (guesstimate)

In Thailand if you want to drive a car and pay the real price of the actual cost of the tankful of fuel, say £30, you can do that . If however you would like to spend some of your money and drive an imported "Luxury Goods" car and still pay the real cost of fuel you can, but the government still need the tax revenue and unlike the UK they don't collect the £120 tax from you at the gas station. Therefore those that can afford the "Luxury" can also pay the Luxury tax up front when they purchase the car. This way those that can't afford the luxury goods aren't having to pay the £120 at the gas station every time they fill their low cost (non luxury) vehicle.

IMHO, It's a very fair system.

You reckon ??

[sparebox2]

Toyota Australia have just announced 350 job losses at their manufacturing plant here; high Aussie dollar, falling sales. Didn't mention other countries charge 200 % import duties crushing any chance of export. Meanwhile a vehicle produced in Thailand could be exported to Australia with nothing like that kind of duty charged.

Life is unfair, so what.

You want same same both ways.

Oz come to Thailand no need visa. The reverse is not true.

You still want same same both ways?

No life can be fair, though 200 % import duties make it less fair.

We do need a visa which can be obtained on arrival.

Thais can become Australians.

Are you bulshiting me?

Australian need a on-arrival visa? NO WAY. Other Oz in TV, please prove me wrong. (Pls don't mix up with Bali, where you need one)

Thai cannot get a visa on arrival at Sydney, even if we wanted to.

Thais can become Australians? Yes, but the process is long, and not all eligible.

Australian can become Thai too. However the process is slightly longer, and not all eligible.

So we sqare on this one.

[ToffeEFCpower]

Import taxes & duties are ridiculously high anyway and for what logical reason? Cap all imports at 30% and enjoy a rise in imports.

[Roj]

Toyota Australia have just announced 350 job losses at their manufacturing plant here; high Aussie dollar, falling sales. Didn't mention other countries charge 200 % import duties crushing any chance of export. Meanwhile a vehicle produced in Thailand could be exported to Australia with nothing like that kind of duty charged.

Life is unfair, so what.

You want same same both ways.

Oz come to Thailand no need visa. The reverse is not true.

You still want same same both ways?

There`s a world of difference between being able to come to Thailand for 30 days and losing your job because of another country`s blatant protectionism. At the end of the day Thailand needs to collect punitive import taxes to avoid their home industries going under in the face of superior European and American products because if Thais could purchase a Mini Cooper for the same price as a Toyota Camry I know what I`d put my money on them parking on the driveway. Thai exporters are already bleating about the minimum wage doubling. If they had to pay the same duties as foreign exporters Thailand would go belly up in a week and revert to an agrarian society.

[sparebox2]

Toyota Australia have just announced 350 job losses at their manufacturing plant here; high Aussie dollar, falling sales. Didn't mention other countries charge 200 % import duties crushing any chance of export. Meanwhile a vehicle produced in Thailand could be exported to Australia with nothing like that kind of duty charged.

Life is unfair, so what.

You want same same both ways.

Oz come to Thailand no need visa. The reverse is not true.

You still want same same both ways?

There`s a world of difference between being able to come to Thailand for 30 days and losing your job because of another country`s blatant protectionism. At the end of the day Thailand needs to collect punitive import taxes to avoid their home industries going under in the face of superior European and American products because if Thais could purchase a Mini Cooper for the same price as a Toyota Camry I know what I`d put my money on them parking on the driveway. Thai exporters are already bleating about the minimum wage doubling. If they had to pay the same duties as foreign exporters Thailand would go belly up in a week and revert to an agrarian society.

There`s a world of difference?

So Thai people should be treated as 3rd class citizen of the world?

Just like the little black lawyer got thrown off the train in Pietermaritzburg station, South Africa.

[Time Traveller]

How exactly is this "abusing their rights"? The law allows for this and it the process is legal. Who cares? Only the jealous people would complain.

Edited January 26, 2012 by Time Traveller