Transfer Land For Lower Price Than Actual Pay For It

[Charly2008]

following situation:

Thai owner wants to sell land, which my company is interested to purchase to expand. The land is registerd at the land office for a price of xx THB/sqm. The Owner wants the transfer to be done to this price, but the actual price my company needs to pay is perhaps 3 times xx THB/sqm.

Now the problem is, I can only register to my company the official price as paid according to the registered price for the land office, as I need the official paper. The money which the company pays more will be declared somehow as a loan from the company to the director. For this loan, the director needs to pay interest rate to the company, but how long we have to that?

I would like to try to get an agreement with the owner that my company pays the transfer fee and get the full price on the official paper, but I have my doubt that he will agree on that, as the official price is subject to income tax.

Anybody know how to handle a case like that? I am really interested in the land and look for a reasonable solution to the above. I am not interested in any illegal activities, but for open for suggestions or ideas.

cheers

[Khun Jean]

If it is a piece of land you really want then pay his taxes. That is the only reason he wants to have the lower price.

You also have a contract i suppose and proof of money transfer, that would be enough proof for your company to use that amount.

The amount that is registered at the landoffice is a kind of evaluation. If the price is 3x that, it probably is quit expensive.

Happens a lot, nobody wants to pay more tax then necessary.

Edited September 17, 2012 by Khun Jean

[davejones]

I'd stay well away from this. If you are colluding with the seller to avoid taxes then you could end up in jail. It's called fraud in the UK, so I can only assume it's the same here.