Crackdown on Thai nominees

[webfact]

BUSINESS
Crackdown on Thai nominees
PETCHANET PRATRUANGKRAI
THE NATION

BANGKOK: -- THE COMMERCE Ministry's Business Development Department plans to focus its investigation on the use of Thai nationals as nominees of foreign-controlled companies in 10 business sectors where it believes the illegal practice is widespread.

Deputy director-general Chainarong Chochai said under a 2016 plan the department would tackle this practice vigorously through stringent law enforcement in a bid to prevent problems occurring under the Foreign Business Act.

The 10 sectors to be inspected are food and beverage, tourism, property rental, the property trade, car rental, spa, handicraft and souvenir retail, Internet retailing, direct sales, and education consultants.

Chainarong said that those sectors would be targeted because it was believed that a high proportion of their businesses were foreign controlled through the use of Thai nominees. He said the department would stringently investigate those businesses in an effort to prevent Thai enterprises and consumers being impacted negatively as some foreign-owned businesses were engaged in unscrupulous activities to lure consumers.

The inspection would focus on a business' share structure, investment capital, and technology transfer.

The department reported this year it had investigated six sectors - food and beverage, tourism, car rental, property rental and sales, and spa.

It said it investigated 6,175 firms in six provinces - Bangkok, Chon Buri, Surat Thani, Prachuap Khiri Khan, Chiang Mai, and Phuket - and found 13 firms were suspected of breaching the Foreign Business Act through the use of Thai nominees.

Those firms have also been probed by the Department of Special Investigation and the Revenue Department.

Source: http://www.nationmultimedia.com/business/Crackdown-on-Thai-nominees-30270653.html

-- The Nation 2015-10-12

[Thai at Heart]

Ah yes. Jump on tesco, dtac, cemex to keep your backers happy

[MaiChai]

Only 13 firms out of 6000? They obviously did not look hard, thus is this really a crackdown?

[NongKhaiKid]

Many Thais have bank accounts overseas, own houses, businesses etc but extend the same considerations to foreigners here, absolutely not can't have any of Thailand in the hands of mere foreigners.

Please give us your money but don't expect too much, if anything, in return.

[BigBadGeordie]

What a good initiative as " some foreign-owned businesses were involved in unscrupulous activities to lure customers", bloody foreigner. They come to Thailand and cannot follow the honest, above board and tranparent business practices utilised by Thai companies.

Next thing you know the will be using social media to get atound advertising regulations!

Edited October 11, 2015 by BigBadGeordie

[Somtamnication]

Xenophobia creeps up again. These business owners built Thailand's tourism, for good or for worse and now off with their heads!

[ukrules]

Wow, a 0.0021% non compliance rate is very good.

I doubt there's another country anywhere in the world that can claim a 99.9979% complaince with all the rules and regulations.

[jaidam]

quote "It said it investigated 6,175 firms in six provinces - Bangkok, Chon Buri, Surat Thani, Prachuap Khiri Khan, Chiang Mai, and Phuket - and found 13 firms were suspected of breaching the Foreign Business Act through the use of Thai nominees."

It is not the essence of tea money but the reek of extortion I am smelling. 13 firms out of 6175 breached the act??? Only 13 companies made an attempt to protect their intellectual rights, management rights and ownership of their investment? The mind boggles.

I read this only a few weeks after being told to give the TAT 7,000 US dollars for their consideration to license my business - otherwise no more 1 year B visas. I refuse. When the playing field is not level, cheating is the best option.

[pinkpanther99]

A crackdown on Thai nominees was always going to happen.

however, some of the figures quoted here are ridiculous.

Only 13 companies?? Yes, right.

They obviously haven't looked hard enough.

There must be thousands and I'd suggest that the vast majority of businesses owned by foreigners in Thailand are actually in breach of this regulation.

[craigt3365]

The number of nominee companies 100% owned and controlled by Thais vastly outnumber those with foreign investors. Corruption money is involved and nominees are setup to protect the rich and powerful, letting them hide behind the nominee company.

http://www.nationmultimedia.com/2006/02/24/opinion/opinion_20001461.php

Indeed, the Shin Corp deal has given rise to a proliferation of nominees in this country. We are having a hard time identifying nominees from the actual owners of companies, land, stocks and other assets.

Thaksin and his wife Khunying Pojaman have epitomised the practice of naming nominees, transforming it into high art.

They transferred their Shin Corp stocks to nominees - their household servants - before the 2001 general election. As a result, Thaksin had to defend himself in the Constitution Court over this attempt to conceal his assets.

I'm not bashing Thaksin, just showing one example of how Thais use nominee companies.

[virtualtraveller]

Here we go again, this surfaces every time we change govt, cynically I would say there is a group/groups of Thai business owners who can't compete so lobby the govt to 'crack down'. Change your silly laws, these foreign run companies do well through efficiency and employ lots of people and contribute to the state coffers disproportionately. How about a crack down on all those Thai owned/controlled businesses that pay little tax and abuse their workforce.

[MaxLee]

Wow, if our current rulers impose more moral babysitting at this day and age in Thailand to age 20+ young adults,..... I'm at a loss of words....

The J*****nta is not my father.

[ezzra]

Is the time of the year again when the power that be comes up the ' crackdown on Thai nominees "

proclamations? wow, how time flies when you're not under a crackdown of some sort in

this country....

[alant]

Yet another attempt to insulate Thailand from the outside world who don't understand Thais anyway (true). The understanding of Thainess has also be revised surely as " engaged in unscrupulous activities to lure consumers." surely is something associated with many traditional businesses reserved for Thais like jet ski operator deck chair attendant etc.

Technology transfer where did that come in to this???

Once we had the iron curtain, now it is the silk curtain.

[ehs818]

WOW! That's a whopping 0.002% of the business.

[jpb1963]

so does that mean If I buy a house via a company structure to comply with thai ownership laws I will be investigated for unscrupulous exploitation of Thailand and its honest law abiding government agencies?

what a funny country to decide to call home for the foreseeable future, oh well glad the food and the people are nice

[Bernard Flint]

Thai nominees has always been subject to checkinbg, for many years. Inventing companies, then inventing thai directors, then buying a house, and you dont think this could be a problem, not new laws, the army man is enforcing a dodgy law.Still think the army man is not a politicion, vote getting in my opinion

[whatproblem]

Sir ,the farangs are more clever than us ,what more obstacles can we put in place?

[DavisH]

WOW! That's a whopping 0.002% of the business.

One wonders is that is because ALL businesses were surveyed or only businesses that have some foreign involvement. If the latter, they one would think this is just bringing bad press and will reduce foreign investment. If Thailand wants serious foreign investment, on a massive scale, the rules need to be changed. Noone wants to invest millions of dollars, just to put control in the hands of Thais.

[KimSamui]

Here we go again, this surfaces every time we change govt, cynically I would say there is a group/groups of Thai business owners who can't compete so lobby the govt to 'crack down'. Change your silly laws, these foreign run companies do well through efficiency and employ lots of people and contribute to the state coffers disproportionately. How about a crack down on all those Thai owned/controlled businesses that pay little tax and abuse their workforce.

Business Development "Thai Style".

[godden]

And technology transfer well that's a one way street then.

[louse1953]

Many Thais have bank accounts overseas, own houses, businesses etc but extend the same considerations to foreigners here, absolutely not can't have any of Thailand in the hands of mere foreigners.

Please give us your money but don't expect too much, if anything, in return.

So who is the smart country and who is the mug?

[arfurcrown]

ASEAN national implementation is a getting nearer isn't it?

Sphincters are quivering as suddenly the playing field(s) is, are becoming a little more even and the opposing team(s) a little stronger.

[Thian]

Ah yes. Jump on tesco, dtac, cemex to keep your backers happy

I thought Dtac is owned by Norwegians but what about AIS and the deal with Singapore? Is AIS still owned by them?

[bangkokheat]

Thai enterprises and consumers being impacted negatively as some foreign-owned businesses were engaged in unscrupulous activities to lure consumers.

well theres the problem for thailand, its run by foreigners as this country is full of unscrupulous activities

[Squeegee]

Let's hope it results in less foreign investment in Thailand, the least they deserve.

[phantomfiddler]

so does that mean If I buy a house via a company structure to comply with thai ownership laws I will be investigated for unscrupulous exploitation of Thailand and its honest law abiding government agencies?

what a funny country to decide to call home for the foreseeable future, oh well glad the food and the people are nice

Correction :- The food is nice (and the weather is usually good). The people ....... if they could find a way of getting our money without even allowing us in the country they would pay for the formula, and they are looking for ANY opening to take what we have, even down to attacking us in the street with complete impunity

[Pib]

The semi-annual crackdown....must have popped up on some govt official's calendar...allows them to get a little media attention.

Semi-annual crackdown schedule for 2016 is Apr and Oct...each crackdown will only last one week because of short media (and govt) attention span.

[louse1953]

Xenophobia creeps up again. These business owners built Thailand's tourism, for good or for worse and now off with their heads!

These dodgy biz owners were warned a long time ago.

[SOTIRIOS]

...complying with unjust conditions....and enriching the economy....

...who are the criminals......