Thaksin's Children To Be Forced To Pay Income Tax At 37 Per Cent Rate

[sriracha john]

Department needs month to deal with Thaksin pair

The Revenue Department will need a month to take action on the failure of two grown-up children of ex-prime minister Thaksin Shinawatra to pay tax and fines stemming from share transactions related to their Ample Rich Investments Co. Department chief Sanit Rangnoi spoke about the issue yesterday after the ASC submitted recommendations on the tax liabilities and fines of Panthongtae and Pinthongta Shinawatra. According to ASC spokesman Sak Korsaengruang, the two siblings are liable to personal income tax amounting to 5.69 billion baht and should pay collective fines totalling 847 million baht on behalf of their company Ample Rich. Mr Sanit said yesterday it would take at least one month for his agency to inform the siblings of the assessment and order them to pay the tax and fines. This is because several procedures are in order, he said. The agency will have to summon the siblings to explain why they failed to pay the taxes, and it would not be unexpected if the siblings were to ask for a postponement to do so, he added. The two failed to pay their personal income tax by the April 2 deadline, and through their lawyer insisted that they were not liable to pay. Mr Sanit said a fine on the same tax amount would be imposed on the siblings once the agency had completed the tax assessment and ordered them to pay. The pair's lawyer has said his clients would appeal.

Continued here:

http://www.bangkokpost.com/News/12Apr2007_news11.php

[John K]

Department needs month to deal with Thaksin pair

The Revenue Department will need a month to take action on the failure of two grown-up children of ex-prime minister Thaksin Shinawatra to pay tax and fines stemming from share transactions related to their Ample Rich Investments Co. Department chief Sanit Rangnoi spoke about the issue yesterday after the ASC submitted recommendations on the tax liabilities and fines of Panthongtae and Pinthongta Shinawatra. According to ASC spokesman Sak Korsaengruang, the two siblings are liable to personal income tax amounting to 5.69 billion baht and should pay collective fines totalling 847 million baht on behalf of their company Ample Rich. Mr Sanit said yesterday it would take at least one month for his agency to inform the siblings of the assessment and order them to pay the tax and fines. This is because several procedures are in order, he said. The agency will have to summon the siblings to explain why they failed to pay the taxes, and it would not be unexpected if the siblings were to ask for a postponement to do so, he added. The two failed to pay their personal income tax by the April 2 deadline, and through their lawyer insisted that they were not liable to pay. Mr Sanit said a fine on the same tax amount would be imposed on the siblings once the agency had completed the tax assessment and ordered them to pay. The pair's lawyer has said his clients would appeal.

Continued here:

http://www.bangkokpost.com/News/12Apr2007_news11.php

[sriracha john]

Tax ruling may decide Shin verdict

Chatumongol remarks a blow to Thaksin kids

Former central bank governor M.R. Chatumongol Sonakul's confirmation yesterday that shares transferred from a company to its staff should be tax-liable _ when he cited a past Revenue Department ruling _ means the ruling will likely be used as a yardstick for judging the Shin Corp-Ample Rich share transaction case. M.R. Chatumongol was commenting after he testified in his capacity as former director of the Revenue Department to the Assets Scrutiny Committee (ASC) inquiry into the case yesterday. The panel had sought his confirmation on the Revenue Department's ruling, which was made in 1995.

Under the ruling, capital gains tax would be imposed on shares given as gifts and on those sold at below market price.

Continued here:

http://www.bangkokpost.com/News/21Apr2007_news01.php

[Old Man River]

Tax ruling may decide Shin verdict

Chatumongol remarks a blow to Thaksin kids

Former central bank governor M.R. Chatumongol Sonakul's confirmation yesterday that shares transferred from a company to its staff should be tax-liable _ when he cited a past Revenue Department ruling _ means the ruling will likely be used as a yardstick for judging the Shin Corp-Ample Rich share transaction case.

Continued here:

http://www.bangkokpost.com/News/21Apr2007_news01.php

While Thai law is based on western law, it has its own ambiguities. Under Thai law, interpretations of existing laws do not set precedents for future cases and neither do decisions reached in arbitration. A written law must be signed by HM the King and published in the Royal Gazette, or it is not a law. Interpretations of an existing law and decisions under arbitration can happen in particular instances, but since they have not been endorsed by HM the King and published in the Royal Gazette, a different decision could be reached in the next case even if the set of circumstances is exactly the same.

[Old Man River]

Sorry, double posting. Fortunatley, it won't set a precedent.

Edited April 21, 2007 by Old Man River

[hammered]

Tax ruling may decide Shin verdict

Chatumongol remarks a blow to Thaksin kids

Former central bank governor M.R. Chatumongol Sonakul's confirmation yesterday that shares transferred from a company to its staff should be tax-liable _ when he cited a past Revenue Department ruling _ means the ruling will likely be used as a yardstick for judging the Shin Corp-Ample Rich share transaction case.

Continued here:

http://www.bangkokpost.com/News/21Apr2007_news01.php

While Thai law is based on western law, it has its own ambiguities. Under Thai law, interpretations of existing laws do not set precedents for future cases and neither do decisions reached in arbitration. A written law must be signed by HM the King and published in the Royal Gazette, or it is not a law. Interpretations of an existing law and decisions under arbitration can happen in particular instances, but since they have not been endorsed by HM the King and published in the Royal Gazette, a different decision could be reached in the next case even if the set of circumstances is exactly the same.

As was demonstrated in the different decisions by the constitution court on the Sanan and Thaksin asset concealment cases.

I do understand however that the supreme court of Thailand does generally try not to make decisions that differ on its previous rulings creating a kind of precedent at least in the upper court.

Edited April 21, 2007 by hammered

[John K]

CORRUPTION PROBES

AEC seeks asset freeze on suspects

Shin Corp sale and Ratchadapisek deal targeted in bid to stop fund-siphoning

The Assets Examina-tion Committee is considering freezing the assets of politicians and their associates who are being investigated for alleged irregularities.

A leading source at the AEC said some members were likely to propose the idea at a full meeting today.

They will ask that the Anti-Money Laundering Office freeze the assets of all people involved in the Shin Corp share sale and the controversial Ratchadapisek land purchase, the source said.

The issue was discussed at the AEC meeting last Wednesday. Some panel members suggested the investigation had gathered sufficient evidence to warrant asset freezing which, they argued, was necessary to prevent funds being siphoned off.

Many AEC members had agreed to the idea but it was likely others would vote against it if a resolution was needed, the source said.

The AEC had found that Shin Corp shares were sold to parties whose stakes were less than 25 per cent so that they could avoid making a tender offer or paying tax.

Authorities can prosecute offenders who break any of three laws.

The anti-corruption law bans politicians from having conflicts of interest and concealing assets under the names of relatives, workers or nominees.

Stock-market law requires traders to report any share transfers that are above 5 per cent and requires shareholders to hold tender offers if their stake exceeds 25 per cent.

Income-tax law imposes tax on income from share transfers except for share sales by an individual.

An AEC subcommittee chaired by Viroj Laohapan will meet to decide how much income tax Ample Rich Investment has to pay for dividends of Bt1.77 billion it received from holding shares in Shin Corp since 2003.

Thailand Securities Depository Co had earlier deducted 10 per cent in tax from the dividends but the AEC believed tax should be collected at the rate of 30 per cent.

Viroj's panel last week agreed in principle that Ample Rich was not exempt from paying tax.

"Although Ample Rich was registered abroad, it has to pay tax because it has Thai directors and does not carry out any other businesses. It received income only from Thailand," a source said.

The AEC is also probing the telecom excise tax that was introduced by Thaksin Shinawatra's government but has since been revoked.

Chairman Nam Yimyaem said the AEC would question witnesses about the cabinet meeting that issued the resolution on excise tax. "If no one made any objection, all Thaksin cabinet members who issued the resolution would be held responsible for the policy," he said.

Bancha Khaengkhan

The Nation

[Jai Dee]

AEC denies instructing AMLO to seize Shin Corp property

The Spokesperson to the Assets Examination Committee affirms that no seizure of property involving the ShinCorp stock scandal has occured.

AEC spokesperson, Mr. Sak Korkaewruang (สัก กอแสงเรือง), report that rumors of a seizure of property of guilty parties in the ShinCorp stock scandal by the Anti Money Laundering Office (AMLO) are still being investigated. Mr. Sak said that he was not aware of the source of these rumors, but said that despite the AEC's authority to seize property, these powers needed to be exercised with discretion.

The AEC spokesperson said that suspected parties in the ShinCorp stock scandal would have to be fully charged with intent to conceal illegal monetary transfers before their property could be seized. Mr. Sak added that AMLO has been instructed to investigate the matter.

Meanwhile earlier this morning (April 23), a meeting chaired by Mr. Wirote Laohapan (วิโรจน์ เลาหะพันธุ์ ) was conducted to discuss the ShinCorp stock scandal.

Source: Thai National News Bureau Public Relations Department - 23 April 2007

[sriracha john]

Thaksin Shinawatra's children ordered to pay 20 BILLION BAHT in taxes, fines

BANGKOK, Thailand: Two children of ousted Thai Prime Minister Thaksin Shinawatra were ordered by an anti-graft body on Monday to pay 20 billion baht (US$616 million) in outstanding taxes and fines from the sale of the family's telecommunications business.

The decision to order Pintongta and Phantongtae Shinawatra to pay the taxes was in connection with the January 2006 sale of Shin Corp. to Singapore's government investment arm, Temasek Holdings, for 73.3 billion baht (US$2.3 billion).

According to the Assets Examination Committee, the pair set up a company in the British Virgin Islands called Ample Rich as part of a scheme to avoid paying taxes on the sale. They sold the shares of Shin Corp. owned by Ample Rich to themselves at a price of 1 baht each before selling their controlling stake in Shin Corp. to Temasek at 49 baht a share.

It was only discovered after the sale that they were owners of Ample Rich.

"The AEC ruled that (the children) intended to avoid taxes by selling the shares in an indirect manner," said Kaewsan Athipho, an AEC member. "They registered the company abroad but conducted business in the country. They have to pay taxes like other corporations in Thailand."

Pintongta and Phantongtae have the right to appeal the ruling to a civil court.

A lawyer for the Thaksin family could not be reached for comment, though in the past the family has vowed it would never pay taxes on the Shin Corp. sale.

The decision by the AEC, established after Thaksin was deposed in a bloodless coup last September, is the latest setback for the family of the former media tycoon.

Earlier this month, the AEC ordered Pintongta and Phantongtae to pay another 5.6 billion baht (US$172 million; €127 million) in taxes and penalties over allegations that they had profited by buying Shin Corp. shares at below-market prices before reselling them.

Thaksin's wife Pojaman Shinawatra, her brother and secretary were charged in March with evading millions of dollars in taxes over a 1997 share transfer.

The sale of Shin Corp. sparked widespread anti-goverment protests that eventually contributed to Thaksin's downfall. Opponents were angered that Thaksin avoided taxes and sold off what many considered a strategic national asset to a foreign country.

- Associated Press

===============================

20 Billion Baht

:D :D

Edited April 23, 2007 by sriracha john

[Jai Dee]

Thaksin's children or Ample Rich must pay Bt21bn

Ample rich Investments or its directors must pay almost Bt21 billion in tax from income earned on Shin Corp shares since 2003, the Assets Examination Committee (AEC) declared yesterday.

AEC Shin Corp share-probe committee chairman Viroj Laoha-pan said it was recommended the Revenue Department tax Ample Rich - or directors Panthongtae and Pinthongta Shinawatra - Bt20.98 billion.

Tax should be at the full corporate rate because it was decided Ample Rich was a foreign company doing business in Thailand.

The Thailand Securities Depository had charged the company 10 per cent tax on its dividends. But, the AEC believed the tax should be collected at the full 30 per cent. The British Virgin Islands-registered company earned revenue from dividends, the sale of Shin Corp shares and other income between 1999 and 2006.

On April 2, the panel ruled Panthongtae and Pinthongta must pay combined taxes of Bt5.691 billion on the Bt16.295 billion earned from the January 23, 2006 sale of Shin stock to Temasek Holdings of Singapore.

Viroj said the panel would now investigate if Ample Rich intended to avoid paying tax.

AEC secretary Kaewsan Atibodhi denied the AEC was considering freezing assets of all involved in the share sale and under investigation for alleged irregularities. But he said neither the AEC nor the courts had ruled if the Shina-watra family was unusually rich.

He explained the Legal Execution Department could freeze assets in tax cases, but if defendants appealed and deposited a surety this action could not be invoked. Assets can be frozen in cases where defendants are declared unusually rich.

Committee spokesman Sak Korsaengruang also denied it would freeze the property and accounts of politicians and associates being investigated for corruption.

Sak said there was no basis to the claims. The AEC had the power to freeze assets but it must act with caution and fairness in exercising it, he said.

Assets would be frozen only if there was evidence those under investigation would try to transfer them, he said.

A source who asked not to be named said on Sunday the AEC was considering such a move.

The source said the committee would ask the Anti-Money Laundering Office to ban access to the assets of all involved in the Shin Corp share sale and the controversial Ratchadaphisek land purchase.

Sak said the AEC would file a defamation complaint against Thai Rak Thai Party caretaker leader Chaturon Chaisang.

Sak alleged Chaturon accused the AEC of being a "kangaroo court".

Source: The Nation - 24 April 2007

[sriracha john]

Tax shock for Thaksin children

Must pay B21bn extra over Ample Rich deal

Panthongtae and Pinthongta Shinawatra, two grown-up children of deposed prime minister Thaksin, have been ordered to pay almost 21 billion baht more in outstanding taxes and fines relating to the sale of Shin Corp, the Assets Scrutiny Committee (ASC) ruled yesterday. The panel decided the two siblings must pay another 20.89 billion baht in corporate income tax on behalf of Ample Rich, of which they were directors, for reaping the profits in Thailand. The ruling means the Shinawatra family will have to pay 27.42 BILLION BAHT in total. This sum includes personal income tax of 5.69 billion baht the siblings were already ordered by the military-appointed panel to pay for the Shin share deal they made via Ample Rich last year, along with other charges.

Continued here:

http://www.bangkokpost.com/News/24Apr2007_news01.php

===============

27.42 Billion Baht, even better

:D :D

Edited April 24, 2007 by sriracha john

[John K]

[Jai Dee]

Thaksin's sister testifies to AEC

Yinglak Shinawatra, a sister of ousted prime minister Thaksin Shinawatra, met a subcommittee of the Assets Examination Committee to testify over the part in the sale of Shin Corp's shares Tuesday.

Yinglak and two aides arrived at the head office of the Office of the Auditor-General at 9:30 am.

She declined to speak to reporters.

Source: The Nation - 24 April 2007

[sriracha john]

Thaksin's sister testifies to AEC

Yinglak Shinawatra, a sister of ousted prime minister Thaksin Shinawatra, met a subcommittee of the Assets Examination Committee to testify over the part in the sale of Shin Corp's shares Tuesday.

Yinglak and two aides arrived at the head office of the Office of the Auditor-General at 9:30 am.

She declined to speak to reporters.

Source: The Nation - 24 April 2007

Easily identifiable as the only one in the clan that doesn't look like they could clear out a buffet spread single-handedly:

former President, AIS

[gummy]

If they do pay the 27.4 billion it will only leave them 54 billion to live on, certainly they will have to make cut backs somewhere.

[sriracha john]

Reminiscent of the other thread:

Thaksin's Son Grilled For Two Hours

comes this one:

Pinthongta Grilled For Seven Hours

*guess she was a bit tougher cut of beef...*

It's good thing she had a lot of water... proper basting is important during a long grill.

Time for more of Thakky's kinfolk to be put onto the barbie:

Bhanapot gets 5-hour grilling

The Assets Examination Committee questioned Bhanapot Damapong, brother-in-law of former PM Thaksin Shinawatra, for over five hours yesterday, mainly about the setting up of Ample Rich to sell Shin Corp shares worth Bt73.3 billion to Singapore's investment firm Temasek.

So now then, we've had the son, the daughter, the brother-in-law all grilled and seasoned....

It's time for the younger sister now to be subjected to The Nation's favorite verb... and this time, given the length of her grilling, she must be a really tough piece of meat:

Yingluck grilled for more than eight hours over share deal

Yingluck Shinawatra, the youngest sister of deposed prime minister Thaksin Shinawatra, told the Assets Examination Committee yesterday she did not pay income tax on two million Shin Corp shares she bought from Thaksin because she had yet to sell any of them, a source said yesterday.

The AEC panel probing the Shin Corp share sale grilled Yingluck for more than eight hours over the two million shares she bought from Thaksin at a par value of Bt10 each.

The subcommittee asked if she had filed a tax return reporting the capital gains she made. Since the market price of Shin Corp stock was Bt150 at that time, she earned about Bt280 million in total from the price difference on the two million shares, the source said.

Yingluck said she did not file a tax return because she did not think she realised any income since she has not sold any of the shares. She said she wrote Bt20 million in cheques to pay for the two million shares and would submit evidence about the cheques later.

She said she asked Thaksin for some shares so that she had some capital for business investment. Thaksin sold her the two million shares in 2000, the source said.

Yingluck told reporters that the session took a long time because she wanted to make sure her testimony was accurate.

Sak Korsaengruang, chairman of the panel, said Yingluck would not be the last witness to testify in the case. Yingluck was cautious during the questioning and did not answer questions that were technical or complicated.

Yingluck's case was similar to Bhanapot Damapong, Pojaman Shinawatra's brother, who did not file a tax return for income on the price difference of Shinawatra Computer and Communication shares worth Bt778 million. The panel ruled that Bhanapot was liable to pay tax and the case was sent for trial last month.

Another AEC panel would today wrap up its investigation into the Ratchadaphisek land purchase by Pojaman Shinawatra, chairman Udom Fuangfung said yesterday.

Udom said his panel would suggest to the AEC that the land deal be lodged with the Supreme Court's Criminal Division for Holders of Political Positions for convenience even though Pojaman was not a politician.

- The Nation

[John K]

I must admit this is all getting a bit confusing and I do need some sort of score card. If you listen to Thaksin and his family you would be able to believe that if you write a check for a negative amount, when it finally gets to the bank that amount would be deposited into your checking account.

[John K]

AEC denies overtaxing the Shinawatras

The Assets Examination Committee will file a libel suit against Thai Rak Thai Party leader Chaturon Chaisang for accusing the agency of acting like a "kangaroo court", its chairman Nam Yimyaem said Wednesday.

The libel suit would not be settled out of court and the AEC would lodge a complaint with police soon against Chaturon for his remark, he said.

"This is not a threat against those who want to criticise our work. People can criticise - but not slander us,'' he said.

AEC secretary Kaewsan Atibodhi, meanwhile, defended the agency. He said it had not repeatedly taxed the Shinawatra family in regard to Ample Rich's stake in Shin Corp.

Kaewsan was responding to a lawyer for deposed prime minister Thaksin Shinawatra, Noppadol Pattama, who threatened to sue the AEC for "repeatedly taxing" Panthongtae and Pinthongta Shinawatra, Thaksin's children.

Kaewsan said: "They can take us to court, but we believe we did the right thing. And we have no intent to cause them any damage. We are just protecting the country's interest."

The Nation

[John K]

Well it seems Thaksin has a very solid defense. Selective name calling is a very powerful defense.

[Tony Clifton]

She said she wrote Bt20 million in cheques to pay for the two million shares and would submit evidence about the cheques later.

Seems thay aren't too worried, continuously delaying their testimonies or never having on hand evidence that would clear them.

[John K]

Just in case some of this subtle in the open stuff has passed by. Thaksin is making some serious bids for a football team from memory 7,000,000,000 baht. Recently he did not seem to have enough money to buy a house so the Mrs. Had to send 400,000,000 baht along. Now seeing is all this money is owed in Thaxsis (new word) to me this looks like he wants to empty his bank accounts and turn it into things much more difficult for the Thai government to collect on. Is this one of the things the Thai government was kinda looking for to freeze his assets?

Thaxsis Noun; 1 the tax money Thaksin owes to the Thai government.

[nick2k]

taksin evidently pursued legal advice to structure the sale of his company to temasak. ..so, then, why don't the powers who might be just question this panel of lawyers that he had hired to structure the deal? get to the nitty gritty - so to speak.

http://bdo-thaitax.com/publications/pub_ta...us_2006_mar.pdf

all this questioning members of the family is starting to make this whole affair sound like a lynch mob.

BDO Richfield Advisory Limited - Tax and Legal services.

[Tony Clifton]

Just in case some of this subtle in the open stuff has passed by. Thaksin is making some serious bids for a football team from memory 7,000,000,000 baht. Recently he did not seem to have enough money to buy a house so the Mrs. Had to send 400,000,000 baht along. Now seeing is all this money is owed in Thaxsis (new word) to me this looks like he wants to empty his bank accounts and turn it into things much more difficult for the Thai government to collect on. Is this one of the things the Thai government was kinda looking for to freeze his assets?

Thaxsis Noun; 1 the tax money Thaksin owes to the Thai government.

Not to be confused with:

Thaxis: Noun; 1 an alliance to draw in with them a group of dependent or supporting powers.

[solo siam]

taksin evidently pursued legal advice to structure the sale of his company to temasak. ..so, then, why don't the powers who might be just question this panel of lawyers that he had hired to structure the deal? get to the nitty gritty - so to speak.

http://bdo-thaitax.com/publications/pub_ta...us_2006_mar.pdf

all this questioning members of the family is starting to make this whole affair sound like a lynch mob.

BDO Richfield Advisory Limited - Tax and Legal services.

Its the family that have done all the tax evasion, as everything was in their names that makes it their responsibility.

[John K]

AEC, Revenue Dept spar over Shin taxes

An Assets Examination Committee (AEC) panel is preparing to ask the Revenue Department director-general today why the tax calculation for Thaksin Shinawatra's children from the Shin Corp share sale is being delayed.

An AEC source, who asked not to be named, said the panel will ask Sanit Rangnoi why the department had to appoint a 19-member committee to calculate the tax Panthongtae and Pinthongta Shinawatra were supposed to pay.

"We used to do this work before," the source said. "We don't see why the Revenue Department has to appoint this many people to calculate and decide on the taxation.

"There has never been a 19-member committee - it will delay the work and affect the tax amount [the pair] will have to pay."

Moreover, increasing the number of committee members would also increase the chance of information being leaked to help certain people, he said.

On April 10, the AEC submitted its tax calculation to the department and suggested it demand Panthongtae and Pinthongta pay Bt5.6 billion by April 15. Any later and the figure would increase because of a 1.5 per cent fine.

Today, the AEC will submit another tax calculation form to the Revenue Department suggesting it tax Ample Rich as a legal entity for Bt20.8 billion, the source said.

If the Revenue Department did not change its system, it could hurt the cases as three courts would have to rule on them because the subjects would likely appeal to the Supreme Court, the source said.

The AEC and the Revenue Department have had differing opinions on how, when and how much Panthongtae and Pinthongta's share sales were subject to tax.

Bancha Khaengkhan

The Nation

[John K]

It looks like there may some....... well ...... doing things in Thai time. I cant help it but it made me smile to see Thais discontent with Thai time.

[sbk]

It looks like there may some....... well ...... doing things in Thai time. I cant help it but it made me smile to see Thais discontent with Thai time.

Well, 19 people on a committee to decide will make it even more glacially slow than regular "Thai time"

[Jai Dee]

Revenue Dept. gives info.on personal income tax of Ex-PM’s children to AEC

Director-General of the Revenue Department explains the department’s inspection into personal income tax of the son and daughter of the deposed prime minister to a subcommittee under the Assets Examination Committee (AEC).

The AEC subcommittee invited the Director General of the Revenue Department, Sanit Rangnoi (ศานิต ร่างน้อย), and his Deputy Director-General Sathit Rangkhasiri (สาธิต รังคสิริ) to give information concerning the personal income tax estimated at 6.5 billion baht of the ex-PM’s children, Panthongtae and Pinthongta Shinawatra. The subcommittee, chaired by Wiroj Laohaphan (วิโรจน์ เลาหะพันธ์), says AEC has already officially requested the Revenue Department to gather tax from the two people within 45 days; however, the department has shown no progress in the tax collection.

The transfer of shares between the Shin Corporation and the Ample Rich Investment made by Mr Panthongtae and Ms Pinthongta has been investigated by AEC. AEC earlier ruled that the two people have to pay 6.5 billion baht of tax for the share transfer.

Meanwhile, the AEC subcommittee scrutinizing the Ratchadaphisek land deal made by Khunying Potjaman Shinawatra holds a meeting to consider five issues concerning the purchase and announce charges against those involved in the case.

Source: Thai National News Bureau Public Relations Department - 30 April 2007

[sriracha john]

Revenue chief blames procedure

Revenue Department director-general Sanit Rangnoi was grilled by the Assets Examination Committee (AEC) yesterday for its slowness to tax Panthongtae and Pinthongta Shinawatra over the Shin Corp share sale, a source said.

Sanit told AEC's subcommittee chairman Viroj Laohapan that his department has yet to summon Panthongtae and Pinthongta to pay Bt5.6 billion tax in connection to Shin Corp share sale because it has to follow procedures required by law by first cancelling the summons for the two to clarify their tax payment in accordance to Article 40 (8) of Revenue Code.

The department ruled that it has to issue a new summons for the two to pay tax in accordance to Article 40 (2) of the Revenue Code.

It also has to give both the right to object to the AEC's ruling.

The AEC quoted Viroj, who as a former Revenue Department director-general knows the process to collect backdated taxes well, as saying that the procedures should not take the 45 days granted by the panel.

On April 10, the AEC submitted its tax calculation to the department and suggested it demand Panthongtae and Pinthongta pay Bt5.6 billion by April 15.

The AEC yesterday told Sanit that it must tax both within the deadline, or by the end of May.

The AEC will soon submit another tax calculation form to the Revenue Department suggesting it tax Ample Rich for Bt20.8 billion, the source said.

Viroj told Sanit that if the Revenue Department does not agree with the AEC's ruling he "should not give press interviews" but forward his comments or suggestions directly to the AEC to prevent public confusion, the source said.

AEC spokesman Sak Korsaengruang defended criticism from Noppadol Pattama, lawyer to former prime minister Thaksin, who claimed the AEC's overtaxing Pinthongta and Panthongtae in regard to Shin Corp share sale would affect investment in holding companies in the stock market.

Sak said the AEC issued the ruling in accordance with previous rulings by the Revenue Department, which conform to the Revenue Code. All investors and companies have to follow Thai Revenue Code and Thai law, he said.

- The Nation

[sriracha john]

Thai businessman charged

Surin Upatkoon, the Malaysia-based Thai tycoon, is the sole suspect identified by the Kularb Kaew investigation, defying expectations that several big names would be incriminated.

"He was informed of the charge and he is undergoing bail procedures," national police chief General Seripisut Temiyavej said yesterday.

The police team had finalised its work and was waiting for the translation of some more English documents. The investigation should not take long to complete, Seripisut said.

"We will need to thoroughly check the dossier before forwarding the case to the Attorney-General's Office," he said.

Surin could not be reached for comment on the charge of acting as a nominee for Temasek. Kularb Kaew was set up days before Singapore's Temasek Holdings announced its purchase of Shin Corp on January 23, 2006 from the Shinawatra and Damapong families. The acquisition hinged on Kularb Kaew, which had teamed up with Temasek's Cypress Holdings to take over half of the Shin Corp shares that were bought through Cedar Holdings.

Appearing on Kularb Kaew's shareholder list were famous businessmen Pong Sarasin and Suphadej Poonpipat.

Following criticism that both of them acted on behalf of Temasek and could have breached the Foreign Business Act, Pong and Suphadej reduced their stakes after Surin stepped in. In March Surin spent over Bt2 billion to buy new shares of Kularb Kaew.

Surin, holding some 68 per cent of Kularb Kaew, has insisted that he acted on behalf of no one. He said he was financially capable of making the investment and his decision was based on the attractive business outlook of Shin Corp.

If Surin is defined as a nominee for Temasek, it could threaten to unravel the Shin Corp deal.

- The Nation