Pm Told To Pay 5 Billion In Taxes

[sriracha john]

In what must be considered a further example of PM's eroding influence:

PM's clan told to pay B5bn in tax

The Senate's graft subcommittee says the Revenue Department applied an unequal standard in failing to levy a tax on the transfer of shares by Prime Minister Thaksin Shinawatra and his wife Khunying Potjaman to their family members. The panel has asked the Shinawatra clan to pay up the income tax worth over five billion baht.

Subcommittee chairman Chirmsak Pintong disclosed the results of a six-month-long investigation yesterday detailing the irregularities, which he said would be handed over to the National Counter Corruption Commission (NCCC) and the Finance Ministry.

According to the report, in the year 2000, less than 12 months before Mr Thaksin became prime minister, he and Khunying Potjaman transferred 27 million Shin Corp Plc shares outside the stock market at a par value of 10 baht to Mr Thaksin's sister Yinglak and Khunying Potjaman's brother Bannapoj Damapong.

The value of the shares at that time was 150 baht per share which meant that if the shares were resold by Ms Yinglak or Mr Bannapoj, they would both have made a 140 baht profit on each share.

A 1995 Finance Ministry regulation says that for stocks sold outside the market and sold lower than the trading price, beneficiaries must pay 37% income tax.

The Revenue Department gave both Ms Yinglak and Mr Bannapoj a tax exemption, a decision which the Senate panel says held no legal justification.

"A top-level official from the department told the committee during its investigations that income tax was not collected because Ms Yinglak and Mr Bannapoj had only bought the shares and had not re-sold them,'' said Mr Chirmsak.

However, there was no such exception clause in the 1995 ministry regulation.

In 2002, the Revenue Department levied a tax on Ruangkrai Leekitwattana, an accounting director of a private company who once worked with the Office of the Auditor General (OAG), after 5,000 shares in Bangkok Expressway Company Limited (BECL) were transferred from his father outside the market.

Mr Ruangkrai was ordered to pay tax of 20,350 baht on an estimated profit of 55,000 baht.

Mr Ruangkrai refused to pay the money, citing the case in which the Revenue Department decided against collecting tax from the Shinawatra family in 2000, and appealed to the department for another verdict.

It was refused and finally he had to pay the levy.

A Senate source said Mr Ruangkrai, who used to work for auditor-general Khunying Jaruvan Maintaka, wanted to catch the Revenue Department at its own game and so devised the plan for that very purpose.

Senator Chirmsak said that in July, the Revenue Department offered to give back Mr Ruangkrai's tax money so he would stop his complaints, but he refused and submitted the evidence to the panel.

Another investigation into share transfers between members of the Shinawatra family is said to point to other potential tax liabilities.

"We have also recently found out that Mrs Potjaman in 1997 sold 4.5 million shares of Shin Corp Plc to her brother Bannapoj outside the market without being told to pay income tax, but a report has yet to be finalised,'' said the Bangkok senator.

"Including fines for late installments Mr Bannapoj and Ms Yinglak would owe the Revenue Department just over five billion baht in tax money,'' said deputy panel chief Senator Nirand Pitakwatchara.

Sen Nirand said the stock market has turned into a gold mine for politicians and their cronies to raise money for their own purposes.

"In 2003, 10% of businesses were owned by relatives of influential cabinet members, but at this time it could be up to 40% or 50% and it may be 80% in the future unless the Stock Exchange of Thailand does its job,'' he said.

Mr Nirand added that Mr Bannapoj and Ms Yinglak got away with it because they had ties to government figures but if they didn't like what happened to Mr Ruangkrai, then they would have had to pay up the money.

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The tax-man is expecting your check soon, Maew.... pay up.

[thaivisitor]

WOW!!!!!!

Is he really going to be in deep "sh*t, a very expensive one at that!

[Butterfly]

Sh1t hits fan ?

[dr_Pat_Pong]

A new Finance Minister perhaps

[stumonster]

Maybe this is where all the money for the MEGA projects was supposed to come from....

I am sure there have been quite a few other share transfers by the pillars of society that are the government ministers of thailand.

[dr_Pat_Pong]

Maybe this is where all the money for the MEGA projects was supposed to come from....

I am sure there have been quite a few other share transfers by the pillars of society that are the government ministers of thailand.

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ain't that the truth

[otherstuff1957]

Either my math is weak, or there's more to this story than the press has reported.

27,000,000 shares at 150b per share = 4,050,000,000 or a bit over 4 billion.

37% of 4 bi. is about 1,498,500,000 or about 1 and 1/2 billion. Does that mean that they are assessing 3.5 bil in penalties ?

[Ricardo]

Wonder when they will send in the bailiffs ?

[johnh101]

The Revenue Department gave both Ms Yinglak and Mr Bannapoj a tax exemption, a decision which the Senate panel says held no legal justification.

TIT

[sriracha john]

We can only hope a good chunk of it is penalties.

Also probably includes prior shady stock selling?:

"We have also recently found out that Mrs Potjaman in 1997 sold 4.5 million shares of Shin Corp Plc to her brother Bannapoj ."

[h90]

I thought if you are premier you don't need to pay any tax....

[astral]

And I thought he had just told us there was no corruption in Thailand?

Serves him right.

Time to pay up.

[bkkmadness]

I hope he's got a bit of Marvin Gaye on coz looks like Thaksins in Trouble Man

"There's only 3 things for sure:

Taxes, death and trouble"

[tuky]

I hope it goes ahead, it would be a great way to show the people of Thailand that the Government are serious about transperancy.

[h90]

astral you missunderstand that, thats not corruption, that are only tricks and pittfalls from evil person, who don't want to understand that he is only doing the best for himself, aeh I mean for Thailand......

And I thought he had just told us there was no corruption in Thailand?

Serves him right.

Time to pay up.

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[thaivisitor]

I hope it goes ahead, it would be a great way to show the people of Thailand that the Government are serious about transperancy. 

<{POST_SNAPBACK}>

Are you serious? And might the government be at this point of time?

I'm sure he'll find a way thru all this, just want to know how he does it, that's all and hopefully, it won't be "an honest mistake" again.

[ilyushin]

Can you hear the war drums?

[Scott]

I have a feeling that money is never going to get paid. It'll be interesting to see how they get out of it.

[opothai]

while he's in power i would hazzard a guess there will be no payment, so maybe this is the end of the road, and with a chink in his armour his opponents can attack.

[tuky]

Filing for bankruptcy is the next step

[Erwin1011]

There are rumours floating around that the family is going to sell their share in Sin Corp to SingTel.

[tuky]

There are rumours floating around that the family is going to sell their share in Sin Corp to SingTel. 

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From where Erwin?

[sriracha john]

There are rumours floating around that the family is going to sell their share in Sin Corp to SingTel. 

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From where Erwin?

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"It's all lies... lies, I tell you... nothing but lies..."

BANGKOK (Dow Jones)--Thai telecommunications conglomerate Shin Corp. Friday denied a report by a local newspaper that its major shareholders will sell their stake in the company to Singapore Telecommunications Ltd.

Shin issued the denial in a filing to the Stock Exchange of Thailand.

Thai Rath newspaper reported Friday that the families of Prime Minister Thaksin Shinawatra and his wife are in talks to divest their combined 49.61% stake in Shin to SingTel. The deal would be worth around THB70 billion-THB80 billion, according to the report.

hmmm... if he did sell, he could easily pay off his 5 billion tax bill that's due, but then again, he most likely has that much laying around the house in spare change jars.

Businessman-turned-politician Thaksin is the founder of Shin, which is a holding company of many key telecom firms in Thailand, including Advanced Info Service (AIS), the country's largest mobile phone operator.

[bugsyjnr]

Filing for bankruptcy is the next step 

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The poor fella is obviously struggling,who is gonna start a collection to help him back on the right track?

[tuky]

"It's all lies... lies, I tell you... nothing but lies..."

Why does that statement make me think of this graphic?

[stumonster]

in spare change jars.

I think they are refered to as Teapots in this neck of the woods......

[COBBER]

I cant really see the logic in the family selling out to Singtel. The AIS network is a virtual license to print money.

[h90]

The horoscope told that he'll not stay long anymore and if he loose his power, he'll loose everything, so better make the shares into $$ and move them to a different country.....

I cant really see the logic in the family selling out to Singtel. The AIS network is a virtual license to print money.

<{POST_SNAPBACK}>

[johnnyk]

Whether he pays or not, this type of standing-up-to-him was unthinkable not very long ago.

[h90]

that is because of the horoscope, telling that soon he won't have any power anymore....

I got it explained like that.

Whether he pays or not, this type of standing-up-to-him was unthinkable not very long ago.

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