Thai Govt Lost Bt20 Bn Revenue From Tax Evading Luxury Cars

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Country lost Bt20 bn revenue from tax evading luxury cars
PIYANUT TUMNUKASETCHAI
PRASIT TANGPRASERT
TINNAKORN CHAOCHEUN
THE NATION


Tharit

BANGKOK: -- Tax-evading luxury cars probably cost the country more than Bt20 billion in lost revenue, according to the Department of Special Investigation (DSI).

DSI chief Tharit Pengdit made the estimate based on the assumption that more than 8,000 luxury vehicles in the country had been or were about to be registered illegally.

A total of 5,834 registered luxury cars were suspected of getting their papers through a tax-evasion process. Some 3,000 others were in the process of receiving registration papers through a system officials said was illegal.

Major Sukchart Sasomsap reported himself to the DSI last night, after a licence plate number that he once owned was linked to an alleged tax-evading vehicle.

Sukchart is a son of Labour Minister Phadermchai Sasomsap.

A DSI source earlier suggested the tax-evading scheme involved politicians or persons with political connections.

Many luxury cars were smuggled into the country, but were later registered under claims they were imported as auto parts and re-assembled later.

Tharit said Thailand has no facility to reassemble super cars. Therefore, super cars that have been registered as reassembled in Thailand must have used false documents.

The DSI will today search four facilities that have been identified as places where auto parts are assembled into super cars.

"But from information we have received, these places do not have the technology to assemble luxury cars. They are just godowns," he said.

The DSI will today meet with the Land Transport Department, the Excise Department, the Customs Department and the Central Institute of Forensic Science to discuss tax-evading vehicle schemes.

The imported luxury cars are usually subject to a tax rate of between 200 and 314 per cent. Using certain illegal methods, the tax rate can be reduced to just 30 to 50 per cent.

The issue came under the spotlight after some luxury cars in a trailer caught fire in Nakhon Ratchasima while they were on their way to Si Sa Ket last week. Nobody has stepped forward to claim ownership of the vehicles.

One licence plate found among the burned cars allegedly had a link to Sukchart.

A senior policeman, Colonel Panu Buranasiri said some government officials must have been involved in the tax-evading scheme because relevant documents appeared genuine.

He is now looking into a request to retroactively register seven luxury cars in Si Sa Ket, and a case in Nakhon Ratchasima," Panu said.

Transport Minister Chadchart Sittipunt also ordered a probe into the Nonthaburi Transport Office after statistics showed that up to 2,741 reassembled luxury vehicles were registered under its jurisdiction.

Meanwhile, Industry Ministry spokesman Nattapon Nattasomboon said there were 89 entrepreneurs registering themselves as car reassemblers. "But it seems only 10 have really operated their reassembling lines," he said.

"If they don't have the reassembling lines, they will face a maximum fine of Bt200,000 and/or a jail term of up to two years," Nattapon said.

He added that the Thai Industrial Standards Institute (TISI) would work with the DSI in taking action against those behind reassembled vehicles that did not undergo TISI inspections.

"We plan to investigate reassembled motorcycles, too," Nattapon said. He believed there were about 1,000 such motorcycles in Thailand.


-- The Nation 2013-06-06

[Noistar]

I love the penalty - £4000 fine! What a deterrent!

[bigbamboo]

So how come the government in the shape of the DSI is suddenly fully aware of the scale of this fraud and unlike the rice fraud they even have numbers) and yet they have done nothing before to stop it?

[laurentbkk]

A DSI source earlier suggested the tax-evading scheme involved politicians or persons with political connections.

NO ? really ?????????????? I would have never guessed.

[waza]

Looks like the Issan warlords will have to make do with locally produced cars for a while till this all blows over.

[JetsetBkk]

Looks like the Issan warlords will have to make do with locally produced cars for a while till this all blows over.

Yes, I give it another week and then it'll be a case of "What luxury cars?"

[ezzra]

So how come the government in the shape of the DSI is suddenly fully aware of the scale of this fraud and unlike the rice fraud they even have numbers) and yet they have done nothing before to stop it?

That's because the proverbial shit has hit the fan and every body now trying to clean up

the mess....

[finnomick]

If the process of registering an imported vehicle weren't so stupid, i.e. only having the one registration office in Bangkok which does the process the legal way, then they'd cash in on a great many more vehicles trying to be registered. What is the problem with going along to your local registration department, having your vehicle and it's paperwork inspected to ensure import duty and excise duty has been paid and then issueing a legal registration book ? Oh, silly me, I forgot T.I.T. And it doesn't surprise me the gadger at Si Sa Ket has been removed -- you shouldn't need to ask why.....

[comserve]

IMO if they had realistic import laws people would be happy to obey them.

Go along to the BMW motorcycle show room in Bangkok. The prices on a new BMW are the same as you would pay for a similar bike in the real world. Does BMW have an assembly plant in Thailand?

[EyesWideOpen]

This is great news !!! I truly look forward to the DSI investigating the pink Bentley of Charlerm, to make sure he has properly paid the tax on his car. Will I be waiting a long time ??

Edited June 6, 2013 by EyesWideOpen

[SOTIRIOS]

....this is insanity....

...and unstoppable.....

[thhMan]

Thailand has no respect for foreign people. Thats why we have no rights (cant buy land etc)

The world is aware of this now as the Internet has taken care of that... (Ooops... Thailand, you forgot we talk on the Internet ??? )

So countries are now giving Thailand the finger, because Thailand doesnt take care of their countrymen (foreigners)

So Thailand now has to begin getting money flowing from the people into the Govt. which also means filtering more of the pocketed money back into the Govt. If I am correct, we should see more officials getting busted and perhaps even relaxing the foreign status laws in Thailand bit by bit...

Thats my opinion... and I am sticking to it.... Yours may differ... and thats ok too !

[Bluespunk]

This is great news !!! I truly look forward to the DSI investigating the pink Bentley of Charlerm, to make sure he has properly paid the tax on his car. Will I be waiting a long time ??

I wouldn't hold your breath.

[jackr]

The imported luxury cars are usually subject to a tax rate of between 200 and 314 per cent. Using certain illegal methods, the tax rate can be reduced to just 30 to 50 per cent

Surely the illegal, or CRIMINAL, thing in all this is the standard tax rate, between 200 and 314 per cent!!!

[HerbalEd]

So how come the government in the shape of the DSI is suddenly fully aware of the scale of this fraud and unlike the rice fraud they even have numbers) and yet they have done nothing before to stop it?

That's easy to answer: Because with the burning of the cars and no one claiming them ... the cat is out of the bag.

[Thereisnoif]

Thailand, the land of the corrupt .

[Bagwan]

From the OP

Tharit said Thailand has no facility to reassemble super cars. Therefore, super cars that have been registered as reassembled in Thailand must have used false documents.

The DSI will today search four facilities that have been identified as places where auto parts are assembled into super cars.

"But from information we have received, these places do not have the technology to assemble luxury cars. They are just godowns," he said.

My comment is that they will be by the time the DSI arrive to inspect.

[Bagwan]

20 billion lost? Does this mean that somebody will have to exercise restraint when shopping?

[Ulic]

The obvious thing to do is lower the import tax rate for luxury cars to 50-60 % so it is not

worth cheating. Still lots of money for the government and put your police resources to

better use.

[jmccarty]

20,000,000,000/8,000 = 2,500,000 which is US$ 83,000

Supercar = Mercedes SL63AMG = £106,850 (Parkers valuation) new or US$ 165,000 x 200% (would actualy be 328% if bigger than 3.0L http://www2.customs.go.th/Customs-Eng/PersonalVehiclesPermanent/PermanentImport.jsp?menuNme=PersonalPer)

anyway = US$330,000

Smaller Supercar = BMW M3 = £58,365 (Parkers valuation) new or US$ 90,000 x 200% = $180,000

What do they consider a luxury or super car then that costs just $40k ?

[Tboy928]

Looks like the Issan warlords will have to make do with locally produced cars for a while till this all blows over.

Yes, I give it another week and then it'll be a case of "What luxury cars?"

Can someone come up with more details on what is needed to import car , car reassembling .. ? means what ? a car that engine is taken out , or is a damaged car that can be repaired , or whats the story?

IS horribble import taxes on normal car ,we all know that . But seems they have a usable legal system for import and but cars togeather for low 30 prosent tax .. Want to know more about this ?

Edited June 7, 2013 by Tboy928

[Tboy928]

I love the penalty - £4000 fine! What a deterrent!

Special Investigation DSI, is that the same department that investigated goverment land sales in Phuket? and the guy that was screaming that now we will crack down on this ,in newspaper, same guy was transfered to another place , and now we dont hear anything about it.. But is nice resorts on way up some places they few goverment people sold there..

[Tboy928]

A DSI source earlier suggested the tax-evading scheme involved politicians or persons with political connections.

NO ? really ?????????????? I would have never guessed.

Colonel Panu Buranasiri said some government officials must have been involved in the tax-evading scheme because relevant documents appeared genuine. We wait for his transfer soon up in the system..