Elite Card (illegal)

[Spellbound]

Elite Card promotion raises major legal issues

Published on Feb 14, 2004

Interim plan for land ownership may be at odds with the Kingdom’s existing foreign business regulations

The government's introduction of the Elite Card campaign has caught the attention of many foreign residents.

Purchasers of the card are granted a broad range of benefits and legal privileges, the most noteworthy of which is the right to "own" land.

The Thai Elite programme is a member club managed by Thailand Privilege Card Co, Ltd (TPC), a wholly owned subsidiary of the Tourism Authority of Thailand (TAT).

Card membership costs US$25,000 (Bt970,000) for personal membership and $50,000 for corporate membership.

There are a wide range of privileges available to members under the plan including:

A five-year special entry visa allowing the cardholder to stay continuously in Thailand for 20 days (extendable)

Access to the 24-hour Members Consultant Centre, featuring advisory services in seven languages

Access to VIP Fast Track Thai Immigration and VIP lounges

The right to acquire and possess land (subject to TPC policies and conditions)

Club membership is only available to qualifying parties.

The following are the qualifications for personal membership. The applicant must:

Not be a Thai citizen

Not a hold a permanent residence certificate

Not have been declared bankrupt

not have been sentenced to a term of imprisonment of more than six months (irrespective of whether or not the applicant was actually imprisoned)

Not have been declared a person unsound of mind, incompetent or quasi incompetent

Be allowed to stay in Thailand in accordance with the immigration laws or any related laws of Thailand

The following are the qualifications for corporate membership. The corporate applicant must:

Be a juristic person duly incorporated and validly existing under the laws of the country of incorporation of the applicant

Have full power and authority to apply for and maintain the membership of the Thailand Elite

Not have be adjudicated bankrupt

Not have as designee a person who has been sentenced to a term of imprisonment of more than six years whether or not he/she has been imprisoned

Have as designee a person who is allowed to stay in Thailand in accordance with the immigration laws or any related laws of Thailand

Not have as designee a Thai citizen

Not have as designee a foreigner holding a permanent residence certificate

The privilege of being able to "acquire and possess land" gives rise to some legal issues.

Generally, foreign individuals and companies are not allowed to own any interest in land, subject to limited exceptions such as those granted by the Board of Investment.

The above privilege seeks to create a broad exception to this general rule available to all cardholders.

TPC states that after becoming a member, the cardholder has "the right to acquire and possess land (subject to TPC policies and conditions)".

TPC describes this privilege right as the "equivalent or close to an ownership right".

The uncertainty associated with this privilege stems from the fact that laws supporting this privilege have yet to be passed by the legislature. This means that no exception granting cardholders the right to own land has yet been made into law.

Also, no specific time frame has been set forth by the government as to when this legislation is to be enacted.

In the interim, TPC has set forth an ownership structure to be used by Cardholders seeking to purchase land.

TPC has stated that it will "consider to buy land designated by the card holder and at the expense of the member and make arrangements with the member so that the member has full rights to use the land until the land privilege is allowed by law.

In the connection [TPC] shall be entitled to ownership of such land".

Accordingly, until such time as the legislation is enacted, TPC has agreed to hold the title to the land on behalf of the cardholder. TPC will allow the cardholder access and use of the land during this period.

The issue is whether this interim ownership structure is consistent with the current legal restrictions associated with land ownership by foreigners.

The Alien Business Operations Act (1999) sets forth specific penalties for Thai parties who hold ownership rights and on foreigners who cause Thai parties to hold ownership rights in companies for the purpose of avoiding legal restrictions.

As mentioned previously, the general rule is that foreign individuals and companies are not allowed to own any interest in land.

As stated under the structure proposed, TPC would hold title of the land on behalf of the foreign cardholder for the purpose of avoiding legal restrictions. It could be argued that the proposed structure is in conflict with the Alien Business Operations Act.

What makes this situation even more serious are the applicable penalties for violating this provision of the act.

The act prescribes fines of up to Bt1 million and/or imprisonment of up to three years for violators.

Until such time as the appropriate legislation is enacted, there will be uncertainty associated with whether these restrictions and penalties are applicable to cardholders under this scheme.

Michael Doyle

Michael Doyle is a partner of the Bangkok law firm of Seri Manop and Doyle Ltd Tax and Legal Counsellors and may be reached at [email protected].

http://203.150.224.53/page.news.php3?clid=...08235&usrsess=1

[dr_Pat_Pong]

The Elite visa enables 90 day stays not 20...I suspect it was just a typo...

[Spellbound]

What makes this situation even more serious are the applicable penalties for violating this provision of the act.

The act prescribes fines of up to Bt1 million and/or imprisonment of up to three years for violators.

The Elite visa enables 90 day stays not 20...I suspect it was just a typo

Bet the first section is not a Typo, and I bet the card is pulled within a month.

Wonder what will happen to the money they have already collected.

SORRY I FORGOT ,,,, THEY DIDN'T SELL ANY they just gave them away.

Well done Taksin, for yet another wonderful scheme

[dr_Pat_Pong]

What makes this situation even more serious are the applicable penalties for violating this provision of the act.

The act prescribes fines of up to Bt1 million and/or imprisonment of up to three years for violators.

The Elite visa enables 90 day stays not 20...I suspect it was just a typo

Bet the first section is not a Typo, and I bet the card is pulled within a month.

Wonder what will happen to the money they have already collected.

SORRY I FORGOT ,,,, THEY DIDN'T SELL ANY they just gave them away.

Well done Taksin, for yet another wonderful scheme

Well....they sure have gone quiet about the subject. The cat must have got the TAT governors tongue. She was very vocal for awhile. T i T

[huski]

Well....they sure have gone quiet about the subject. The cat must have got the TAT governors tongue. She was very vocal for awhile

oh yes, they beat that dead horse for awhile...the sick thing about it thaksin anounced it was ONLY to quickly raise money from wealthy tourists, not a card with value for a wealthy tourist. why the dumb asses that bought it or that asked a million questions on this forum couldn't see right through that is beyond me.

where are the salesmen, sales girl that were so hot to answer every question and the websites that sprung up overnight? they all tried to make a quick commission and most likely have moved on to selling something else, amway. herbal products or which i hear the latest is a pyramid scheme long distance voice over IP dialing plan in thailand <which by the way is now illegal in cambodia>

RIP elite card, IT's scum card lasted longer.

[dr_Pat_Pong]

Even at 5 baht a go, ole IT had a bit of trouble getting takers. If he'd followed the Elite plan and gave enough away he'd have been on a winner.

[pnustedt]

why the dumb asses that bought it or that asked a million questions on this forum couldn't see right through that is beyond me.

Is it right that cardholders get free admission to the barbecue chicken parties?

Will there be a special priviledge if you buy the last one before the scheme finishes?

[Guest IT Manager]

Even at 5 baht a go, ole IT had a bit of trouble getting takers. If he'd followed the Elite plan and gave enough away he'd have been on a winner.

Over 30,000 people downloaded the card. If they followed the spirit of the thing a few flower kids got a few baht... thats' success

[dr_Pat_Pong]

why the dumb asses that bought it or that asked a million questions on this forum couldn't see right through that is beyond me.

Is it right that cardholders get free admission to the barbecue chicken parties?

Will there be a special priviledge if you buy the last one before the scheme finishes?

There's a lucky door prize sort of thing. A card is the prize...second prize is two cards

[Guest IT Manager]

[Axel]

Interesting aspect. I wonder if anybody will take legal action. A court case, however, could take easily 10 or more years. By that time, I am convinced, you can use your card as a wall decoration and your welcome-kit as a door stopper.

Btw, I still wonder how many people not only bought the card but also PAID for it. I remember 1 member in here and I know one friend of mine. Makes two.

The special imm. counter at Don Muang seems not to be too busy.

[huski]

Operator of Elite Card to seek sidelines

an article, just 6 weeks ago, hmmm trouble on the horzion?

Meanwhile, the company is considering raising the membership fee to US$50,000 for expatriate foreigners living in Thailand as they may use the services more often.

brilliant marketing

Paisit Kaenchan, director and acting managing director of Thailand Privilege Card, said the company was set to expand its business holdings to include building its own boutique hotels and golf courses in Bangkok and Phuket.

Details and the amount of investment have not been finalised, but financing will come out of the company's own pockets, he said.

ponzi scheme?

At the same time, an exclusive gathering place called ``City Club'' will be opened to serve only Elite Card members and their guests.

i have a name for the new exclusive gathering club but the admins will delete it.

The company _ the premier's brainchild _ was established to sell lifetime membership cards to wealthy tourists in order to promote Thailand as a high-class destination and earn foreign exchange.

the premier's brainchild? just remember who's brilliant idea this was. but will he take any responisibilty for his pea sized brain, over and over the answer is no.

[Rinrada]

Can you get a beer after midnight with the card?

[Noodles]

The self destruct goverment has done it again!!!!!!!!

[dr_Pat_Pong]

Can you get a beer after midnight with the card?

Booze and birds are available throughout the night....to members with Elite privileges....the premier said so

[Payne]

The Elite Card was a wonderful idea dreamt up by Prime Minister Taskin, but unfortunately the implementation of the card has suffered on account of inexperienced staff work by political appointees. I am confident that if the Prime Minister had the time to design the scheme himself, it would have been a great success.

My advice is to either get the thing rolling in the next 90 days or kill it. Of course, full refunds must be given to the current card holders.

[dr_Pat_Pong]

The Elite Card was a wonderful idea dreamt up by Prime Minister Taskin, but unfortunately the implementation of the card has suffered on account of inexperienced staff work by political appointees. I am confident that if the Prime Minister had the time to design the scheme himself, it would have been a great success.

My advice is to either get the thing rolling in the next 90 days or kill it. Of course, full refunds must be given to the current card holders.

They acted on the concept without any planning whatsoever, and made policies on the run. Doomed from the outset.

[plachon]

The Elite Card was a wonderful idea dreamt up by Prime Minister Taskin, but unfortunately the implementation of the card has suffered on account of inexperienced staff work by political appointees. I am confident that if the Prime Minister had the time to design  the scheme himself, it would have been a great success.

My advice is to either get the thing rolling in the next 90 days or kill it. Of course, full refunds must be given to the current card holders.

They acted on the concept without any planning whatsoever, and made policies on the run. Doomed from the outset.

Sounds like the entire TRT regime to me. "Foot in mouth " disease is endemic with this lot. How can you run a country where only one person is allowed to have any ideas?

[argus1949]

This is a good idea and I am convinced that Khun Taksin will succeed as it is his idea. Too much put in it already. Right now huge roadshows going on aroud the globe. Nothin will stop this Thailand Elite Card concept.

[huski]

I am confident that if the Prime Minister had the time to design the scheme himself, it would have been a great success.

dear naive number one, read this news article

Thailand Elite Card might be illegal

This is a good idea and I am convinced that Khun Taksin will succeed as it is his idea. Too much put in it already. Right now huge roadshows going on aroud the globe. Nothin will stop this Thailand Elite Card concept

dear naive number 2, read this news article

Thailand Elite Card might be illegal

[dr_Pat_Pong]

Thaksin's son wrote that I think...or his driver.

[dr_Pat_Pong]

or his maid

[Axel]

You are all such non-believers.

The card will become a big success, at least as big as the

traffic clean up in Bangkok a few years ago. Believe me.

[huski]

or his maid

i think his maid just collected the napkins that the business plan was written on after lunch. but lets give her some credit.

IT's scum card is slowly gaining momentum, however there was this one internet cafe down in pattaya that didn't accept it...

[dr_Pat_Pong]

You are all such non-believers.

The card will become a big success, at least as big as the

traffic clean up in Bangkok a few years ago. Believe me. 

The traffic plan came from the self same genius too It might be best if he shut his mouth and be thought a fool....opening it removes all doubt.

[piet pompies]

Depends why one bought the card. If property was not an issue, then it is working reasonably well, but I feel only for persons in Bangkok where immigration lines can be long. From my conversations with Elite staff and drivers they have about 4 customers a day at this time in BKK.

They just bought five ( or seven?) new Mercedes Benzes. The drivers are good and safe, and one passes from plane to downtown BKK in quick time. Have purchased five sets of International Business Class tickets so far at 2 for 1 rate. Issued reasonably efficiently and with little trouble. Travel in Thailand regularly at Domestic Business Class fare less 25%.

Don't play golf or go to spas so cannot remark on that.

There are always risks, for us the risk is that in five years they say that the special entry visa deal is off. (I would personally trade this for longer bar opening hours!)

Honesly do not think from my experience it will be cancelled in a month or ten.

[Axel]

Fair statement piet pompies and if you did not set your expectations too high you do get what you expected. If it is worthwhile is another point.

One example comes to my mind. Very often I have to go to HCMC. C-Class full price on TG is around Baht 18,000. The card gives you 25% so net 13500.

But TG offers me directly their 'special' at 13000.

BTW, how is the issuing of tkts under the system? You must go to TG at Silom or somewhere. You can send a messenger with cash, or you go yourself to sign the credit card. Still needs improvements, I believe.

No, I did not buy the card for various reasons, but

(I would personally trade this for longer bar opening hours!)

starts me thinking.

Let's rally to the PM, all places of whatever entertainment are open for 24 hrs, 7 days a week, exclusively for members. All others must go home by midnight

Just an idea and I still like this LoS here.

[p_brownstone]

One example comes to my mind. Very often I have to go to HCMC. C-Class full price on TG is around Baht 18,000. The card gives you 25% so net 13500.

But TG offers me directly their 'special' at 13000.

BTW, how is the issuing of tkts under the system? You must go to TG at Silom or somewhere. You can send a messenger with cash, or you go yourself to sign the credit card. Still needs improvements, I believe.

And as I pointed out in an earlier Post, if you are willing to pay for full price Airtickets, Amex Platinum (for example) will give either free upgrades or 2 for 1 pricing - and NOT just on Thai International.

Even for the airtickets alone the Elite Card is not worthwhile.

I also wonder how they can justify buying / leasing 5 Mercedes cars, I am not sure how many Cards have been given away / bought but if each of these cars is used only once a day for Airport pickups that means some 1,800 Cardholders arriving each year, even assuming that each Cardholder visits Thailand 3 times a year (not likely!) they would already need to have a membership of 600!

This being Thailand however I am pretty sure the cars are mainly being used by "Executives" and wives etc..

[dr_Pat_Pong]

One example comes to my mind. Very often I have to go to HCMC. C-Class full price on TG is around Baht 18,000. The card gives you 25% so net 13500.

But TG offers me directly their 'special' at 13000.

BTW, how is the issuing of tkts under the system? You must go to TG at Silom or somewhere. You can send a messenger with cash, or you go yourself to sign the credit card. Still needs improvements, I believe.

And as I pointed out in an earlier Post, if you are willing to pay for full price Airtickets, Amex Platinum (for example) will give either free upgrades or 2 for 1 pricing - and NOT just on Thai International.

Even for the airtickets alone the Elite Card is not worthwhile.

I also wonder how they can justify buying / leasing 5 Mercedes cars, I am not sure how many Cards have been given away / bought but if each of these cars is used only once a day for Airport pickups that means some 1,800 Cardholders arriving each year, even assuming that each Cardholder visits Thailand 3 times a year (not likely!) they would already need to have a membership of 600!

This being Thailand however I am pretty sure the cars are mainly being used by "Executives" and wives etc..

You mustn't apply logic to a venture like this. There's no room for logic. The premier is an anti-logic person.

[piet pompies]

Axel, the 25% off is on domestic tickets, BKK CNX or BKK HKT for example. The 2 for 1 is on international. I use Amex as well and shop around for the best fare.

Currently for example the cheapest TG Business fare until the end of March BKK HKG is 17,000 (J Class) .The Elite 2 for 1 is B26,000. So if one travels together there is some saving. The last Amex deal which was less 25% for two, only needed outbound together but that expired end Jan.

I have not tried sending messenger, but tickets have been issued at Sathorn, Domestic and International TG and in Chiangmai at Thai offices.

TG is not great so we use them only when the savings is significant or times are best.