Thailand's DSI uncovers complicated plot behind luxury-car scam

[webfact]

DSI uncovers complicated plot behind luxury-car scam
Piyanut Tamnukasetchai
The Nation



BANGKOK: -- Department of Special Investigation (DSI) chief Tarit Pengdit yesterday revealed progress on the DSI probe into a scam to avoid the higher taxation on imports of luxury cars by registering them as reassembled.

Tarit said seven relevant agencies would meet on Friday June 28 to find solutions for the unwitting owners of the falsely registered car owners, as well as deciding on punishment for those who had modified car engines and gear systems to fool inspectors.

According to an informed source, among the five cars submitted for inspection yesterday were four Mercedes-Benzes seized because the engine, body and gear set carried the same series number, suggesting they were not reassembled cars as claimed.

Tarit also reported on progress in a separate DSI probe into a red Ferrari that was among six super-cars burned in Nakhon Ratchasima while on the way to being registered as reassembled cars in Si Sa Ket late last month. The DSI said the Ferrari, which had been through a complicated process involving some 50 people, originally had a different number plate, which had been concealed beneath a new identity.

Tarit said the auto parts for the Ferrari were imported on June 15, 2011 by JMW Motor Co Ltd and TNT Express Co Ltd, then reassembled by Thanatas Khunnuch's L Auto Shop. The car was then registered for tax as an LPG-adapted vehicle on September 20, 2011, with engineer Kraisit Mahiwan checking the car's condition and certifying the LPG conversion - which was supposedly done by Chatchai Sukchanurak's Power Gas Co Ltd. After registering it with Si Sa Ket's Transport Office, Thanatas transferred ownership of the car to Nareunart Kuansawat, who is suspected of tax evasion in the super-car trade.

"Then the authorities were notified that the car had been switched to use petrol instead of LPG and the owner requested a new registration book on grounds that the old one was missing," explained Tarit.

"The car was later transferred to Bio Power System Thailand Co Ltd, which used it in Lop Buri, hence the new licence plate "Kor Tor 0444 Lop Buri", he said, adding that ownership of the Ferrari had been switched three times in 223 days.

Tarit went on to say that Thanatas owned a fleet of over 28 high-end cars, including nine Mercedes, five Mini Coopers, five Nissans, two Porches, four Toyotas and three Volkswagens, while Nareunart owned a Bentley, Ferrari, Porsche, Volkswagen and Mercedes.


-- The Nation 2013-06-27

[kimamey]

Tarit said seven relevant agencies would meet on Friday June 28 to find solutions for the unwitting owners of the falsely registered car owners, as well as deciding on punishment for those who had modified car engines and gear systems to fool inspectors.

Looks like the cover up operation for the wealthy and influential is under way.

[Thai at Heart]

If they worked it out this fast, must be a rather simple scam actually.

[Sayonarax]

Complicated? How is re-birthing cars or bringing them in as spares complicated?

This has been going on for two decades, yet you only just worked this out?

Some bigwig must of lost his cut along the way and spilled the beans..

[worgeordie]

Smuggle them in ,register them,sell them, my god thats complicated,

regards Worgeordie

[NongKhaiKid]

This could work out nicely for DSI as I'm sure the paper chase could be difficult especially with people from Customs Dept., Registration authorities etc.helping produce or hide necessary documents along the way BUT best of all continually emphasizing the " complicated ' nature of the enquiry allows DSI to proceed slowly and carefully.

Tarit needs lots of time and " meetings " to manoeuvre through the minefield of those found to be involved and identify the toes not to be stepped on.

[DILLIGAD]

Tarit went on to say that Thanatas owned a fleet of over 28 high-end cars, including nine Mercedes, five Mini Coopers, five Nissans, two Porches, four Toyotas and three Volkswagens, while Nareunart owned a Bentley, Ferrari, Porsche, Volkswagen and Mercedes.

Hope he's got planning permission for the two porches. LOL!

[gemini81]

Its safe to mention names, places and businesses when they are those who the DSI crew don't feel intimidated about; mention the owners? Yikes! Don't think so! 'Specially if its a local big shot who had a hand in graft.

Edited June 27, 2013 by gemini81

[Thai at Heart]

This could work out nicely for DSI as I'm sure the paper chase could be difficult especially with people from Customs Dept., Registration authorities etc.helping produce or hide necessary documents along the way BUT best of all continually emphasizing the " complicated ' nature of the enquiry allows DSI to proceed slowly and carefully.

Tarit needs lots of time and " meetings " to manoeuvre through the minefield of those found to be involved and identify the toes not to be stepped on.

The entire 7 organisation structure is set up to facilitate the corruption.

In the 21st century is it really necessary to have regional registration offices with one facility stamping out metal number plates?

Of course never up to speed so you have a red plate that stops you supposedly traveling out of province. Lol.

It's line something out of middle England.

[OzMick]

"Unwitting" is NOT the same as "innocent".

[MaxLee]

DSI uncovers complicated plot behind luxury-car scam

Piyanut Tamnukasetchai

.....,

BANGKOK: -- Department of Special Investigation (DSI) chief Tarit Pengdit yesterday revealed progress on the DSI probe into a scam to avoid the higher taxation on imports of luxury cars by registering them as reassembled.

Sounds to me more like, the preservations of saving face for the rich and powerful owners of those luxury cars, and the international headline diversion is on the way,

... Department of backstabbing Mafia implantation.

[Ricardo]

"unwitting owners"

Who just happened unwittingly to get an amazing impossible-bargain, when buying their super-cars, but who never ever suspected anything might be wrong.

I wonder whether they might also be interested in purchasing shares in a bridge in Brooklyn or London ?

[Farangdam]

wrong is wrong the culprit to be punished how it can be so complicated... car registratration book in hand! they buy the ferari in cash how rich the owner ? $$$$$

[kimamey]

This could work out nicely for DSI as I'm sure the paper chase could be difficult especially with people from Customs Dept., Registration authorities etc.helping produce or hide necessary documents along the way BUT best of all continually emphasizing the " complicated ' nature of the enquiry allows DSI to proceed slowly and carefully.

Tarit needs lots of time and " meetings " to manoeuvre through the minefield of those found to be involved and identify the toes not to be stepped on.

The entire 7 organisation structure is set up to facilitate the corruption.

In the 21st century is it really necessary to have regional registration offices with one facility stamping out metal number plates?

Of course never up to speed so you have a red plate that stops you supposedly traveling out of province. Lol.

It's line something out of middle England.

I agree except that it's nothing like England or the UK. I had to drive with no plates for 7 months here because apparently only company can make plates. In the UK the plates are on before you leave. The police can check almost instantly who owns a car and if they have a licence, road tax and insurance.

Of course it's possible to buy false plates but it's nothing like the shambles here.

[Thai at Heart]

"unwitting owners"

Who just happened unwittingly to get an amazing impossible-bargain, when buying their super-cars, but who never ever suspected anything might be wrong.

I wonder whether they might also be interested in purchasing shares in a bridge in Brooklyn or London ?

But the importers should pay the tax up front. Not the owners

[arthurboy]

Well I never, organized corruption in the land of smiles.

Whatever next?

My sarcasm is built on yet another sigh of utter disbelief.

Well done to the DSI for uncovering the bleedin' obvious.

[Thai at Heart]

This could work out nicely for DSI as I'm sure the paper chase could be difficult especially with people from Customs Dept., Registration authorities etc.helping produce or hide necessary documents along the way BUT best of all continually emphasizing the " complicated ' nature of the enquiry allows DSI to proceed slowly and carefully.

Tarit needs lots of time and " meetings " to manoeuvre through the minefield of those found to be involved and identify the toes not to be stepped on.

The entire 7 organisation structure is set up to facilitate the corruption.

In the 21st century is it really necessary to have regional registration offices with one facility stamping out metal number plates?

Of course never up to speed so you have a red plate that stops you supposedly traveling out of province. Lol.

It's line something out of middle England.

I agree except that it's nothing like England or the UK. I had to drive with no plates for 7 months here because apparently only company can make plates. In the UK the plates are on before you leave. The police can check almost instantly who owns a car and if they have a licence, road tax and insurance.

Of course it's possible to buy false plates but it's nothing like the shambles here.

I've always wondered how is anyone supposed to identify at distance, which province the bloody car is registered within. It's probably how they registered horse and cart 100 years ago.

[CrisRMenumate]

I made a mistake when I suggested nationalising the Rice growing industry, we already have a nationalised industry... corruption... majority of Thai say its acceptable as long as they are gaining something from it, but as usual the small fry out in the villages gain crumbs while big wigs milk the country dry with yet another un-"complicated" piece of greed.

[A Member]

How about a nice little conspiracy theory to start the day correctly ?

It's hinted the Director General of Customs may be promoted to the cabinet as Deputy Finance Minister so can iIstart the ball rolling by suggesting this is a thank you for services rendered or under the dictum " it takes a thief... " or to keep the DSI from getting ideas above their station and pursuing a cabinet minister for past deeds, not that they ever would of course.

The forum is yours !

[Bung]

What's funny is the length they have to go to protect and molly coddle these ultra rich Thais who own the cars.

Can't be stepping on any toes now!

[kurnell]

I remember reading in the Bangkok Post that BMW/Benz etc would not longer cover 'Grey Market' for insurance claims, so how complicated can this be?? I guess if you are Thai then these schemes are obviously hard to follow, so is this an IQ issue or just the fact that nobody cares that rich people are not paying tax for their luxury cars?

[soi41]

What is going to happen to all the confiscated cars? Back to the the Customs Department because duties were not paid? What an excellent business idea, a never ending stream of brown envelopes, and the cars will be back on the street again. Only this time Mr Tarits envelope will be a little bigger for his cooperation and discretion!

[Psych01]

I wonder what Bentley it was? Back in the UK at the nearest local dealer where I am from, Bentley, Mulsanne 2012MY (12), Thai Baht 8,587,016.62, that is before you add any form of import tax. So I would like to know how much was paid in cash?

At the same dealer a 2011 model Bentley, Continental GTC Speed 2011MY (11), Thai Baht 4,771,148.46, I am sure I would not want to be carrying that much in cash.

[bigbamboo]

Poor Tarit, having to deal with such a complicated case.

It's so much easier when he can just say Abhisit did it.

[slapout]

tarit, if he describes this as complicated, may have to have someone else peel his morning plate of banannas..

[mic6ard]

Tarit said seven relevant agencies would meet on Friday June 28 to find solutions for the unwitting owners of the falsely registered car owners, as well as deciding on punishment for those who had modified car engines and gear systems to fool inspectors.

Looks like the cover up operation for the wealthy and influential is under way.

Well look at it another way.

You buy a car from a respected importer. After spending that much, you would obviously expect everything to be clean. You, the buyer, have no way of checking the fact regarding the registration of the car.

It would be wrong to punish the buyer, they are not dealing with stolen goods here, UNLESS the car can be proven to be stolen from some where else.

Infact I can see the buyer suing the importer for false advertisement.

[mic6ard]

I remember reading in the Bangkok Post that BMW/Benz etc would not longer cover 'Grey Market' for insurance claims, so how complicated can this be?? I guess if you are Thai then these schemes are obviously hard to follow, so is this an IQ issue or just the fact that nobody cares that rich people are not paying tax for their luxury cars?

it is easy for BM/merc, etc to do this, as they can simply check the VIN against what the company actually imported.

The same goes for VW as well now.

Apparently they, the dealer, will charge you xxx,xxx.00 registeration fee, to get serviced. But still not covering breakdowns/ malfunctions costs.

i.e. you pay to get your car accepted into the dealer's shop, then you still have to pay for parts and labour costs.

[mic6ard]

What is going to happen to all the confiscated cars? Back to the the Customs Department because duties were not paid? What an excellent business idea, a never ending stream of brown envelopes, and the cars will be back on the street again. Only this time Mr Tarits envelope will be a little bigger for his cooperation and discretion!

Auctions, like the one they had a while ago. And vehicle will be completely legalized!!!

[KRS1]

Pimpin' aint easy...

[steveromagnino]

I remember reading in the Bangkok Post that BMW/Benz etc would not longer cover 'Grey Market' for insurance claims, so how complicated can this be?? I guess if you are Thai then these schemes are obviously hard to follow, so is this an IQ issue or just the fact that nobody cares that rich people are not paying tax for their luxury cars?

it is easy for BM/merc, etc to do this, as they can simply check the VIN against what the company actually imported.

The same goes for VW as well now.

Apparently they, the dealer, will charge you xxx,xxx.00 registeration fee, to get serviced. But still not covering breakdowns/ malfunctions costs.

i.e. you pay to get your car accepted into the dealer's shop, then you still have to pay for parts and labour costs.

My understanding is since last year, and since a while earlier, Benz and BMW respectively will not service a grey market car at all unless it is grandfathered in under previous schemes, when they previously allowed a payment to be made to allow the car to be serviced.

This means all servicing takes place OUTSIDE the official network of Benz Thailand and BMW Thailand. In the case of Benz, many of the grey market importers are former Benz dealers (e.g. CarMax Rama 9, BMG, etc) so they have the skills and equipment to handle servicing. Theoretically.

It is not difficult to understand why SOME grey market models are sold even though the buyers are aware of the potential consequences.

1. models not available through official channels

2. models sold cheaper or with more options than official channels

3. models sold as kitset/assembled cars

From what I understand, 50% of Benzes sold in Thailand are grey, around 80%+ of Audis are grey, BMW is something lower than 50% while Mini I would guess is definitely over 50%. Certain brands like Porsche have a lot of wiggle room on tax hence come in grey, whereas, other cars don't.

Some cars appear to be legitimately imported, the ones that are called a 'rod bragop' are the ones that are most questionable; the more questionable ones are often running at discounts as high as 25-30%; for that level of discount I suppose some people believed that there would be no consequence as so many cars have been coming in this way for the last 2 years - suddenly the playing field is changed.

If buying, then it is worth it to check the title and documents, the grey market importers some have been around a long time, some are, to repeat a word, more questionable.