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

[sriracha john]

DSI will Tuesday announce its decision over SC Asset case against Thaksin

The Department of Special Investigation (DSI) will Tuesday announce if it will charge former premier Thaksin Shinawatra of share concealment, in the case linking British Virgin Islands-registered Win Mark Co Ltd with his family's listed property company SC Asset Plc.

The DSI is prepared to issue a notice to inform Thaksin of the charge, said a source at the department.

If proved of failing to correctly file the family's shareholding in a listed company, under the Securities and Exchange Act, Thaksin is subject to no more than 5 years of imprisonment and the fine no more than twice the value of shares he offered to sell to other parties.

64.6 million shares in SC Asset were offered at Bt15 apiece or a total of Bt969 million.

- The Nation

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

Will tomorrow be as disruptive to Thaksin as today was??

Another day.... another trial....

[sriracha john]

Exiled PM and his wife have to be present to receive charges on SC Asset : DSI

Exiled prime minister Thaksin Shinawatra and his wife, Pojaman, have to be present to receive the formal charges on alleged share concealment in the case linking British Virgin Islands-registered Win Mark with his family's property company, SC Asset.

Department of Special Investigation (DSI)'s chief Sunai Manomai-udom said that Thaksin, Pojaman, and Busaba Damapong, were asked to report themselves with DSI between June 26-29.

If Thaksin claimed that he could not be present because he is now in a foreign country, the investigators will consider whether he intended not to receive the formal charges or not.

If he is considered intending to do so, the investigators will issue an order again. If he failed to be present, an arrest warrant will be issued.

DSI on Tuesday charged Thaksin, his wife and Busaba, of alleged share concealment in the case linking British Virgin Islands-registered Win Mark with SC Asset.

The Securities and Exchange Commission has accused Thaksin of failing to inform the authorities of his shareholding in OAI Property, the old name of SC Asset. In filing his stake, Thaksin did not include the shares he transferred to Win Mark, saying that Win Mark was not his company.

If convicted under the Securities and Exchange Act, Thaksin would be subject to up to five years' imprisonment and a fine no more than twice the value of the shares he offered to sell to related parties. The value of shares Thaksin sold in 2000 was Bt969 million, meaning he could be fined Bt1.938 billion.

In 2000, Thaksin said he had sold shares in three property companies - OAI Property, PT and SCK Asset - to Win Mark for a total of Bt906 million. However, the Democrats found that Win Mark also held shares in two other companies: SC Office Park and Worth Supplies. Total investment in the five firms was Bt1.5 billion.

In his 2000 statement, Thaksin said Win Mark had bought the shares on expectation of reaping profits when the firms were listed.

However, Win Mark had sold shares in OAI Property to Value Asset Fund of Malaysia (VAF) in 2003, and three weeks later VAF sold the shares to Overseas Globe Fund and Offshore Dynamic Fund Inc. The three funds share the same address in Malaysia. Remarkably, the sale took place before OAI Property, later renamed SC Asset, was about to list on the Stock Exchange of Thailand in November of that year.

VAF also transferred the right to buy 70 million new shares of OAI at their Bt10 par value to Thaksin's daughters, Pinthongta and Paetongtarn. Based on the initial public offering price of Bt15 per share, the two children automatically netted a total profit of Bt350 million.

- The Nation

[hammered]

These reports on the dsi charges are starting to appear on this thread, ousted pm to come home thread, thaksin linked to wifes.. thread and no doubt soon the aec thread. is there any way they could be merged or maybe replaced by a Thaksin's mounting court cases and will he return to fight em thread?

Edited June 19, 2007 by hammered

[Mid]

gotta agree ,

time for housekeeping

[sriracha john]

re-open the all-inclusive "What Thaksin Has Done Wrong" thread...

[Jai Dee]

Khunying Potjaman’s lawyer meets AEC today on Shin Corp share sale

A lawyer of the wife of the deposed prime minister, Khunying Potjaman Shinawatra, travels to meet the Assets Examination Committee (AEC) today (June, 19th) concerning the Shin Corp share sale.

Khunying Potajman’s lawyer Somphon Phongsuwan (สมพร พงษ์สุวรรณ) told the press that he cannot reveal whether Khunying Potjaman will travel to meet AEC to give testimony herself later. Sources said the lawyer requested to meet AEC today as Khunying Potajman wants to postpone her testimony about the Shin Corp’s share sale to the Ample Rich company. She had requested AEC to postpone her testimony three times before.

AEC has a mandate given to it by the 30th announcement of the Council for Democratic Reform (CDR) and organic laws of the interim constitution to summon alleged people to testify. Those who violate AEC’s summons are subject to an imprisonment of six months and/or a fine of 10,000 baht.

Source: Thai National News Bureau Public Relations Department - 19 June 2007

[sriracha john]

Thai police charge Thaksin with concealing assets, order him to return

BANGKOK, Thailand: Police ordered exiled former Prime Minister Thaksin Shinawatra on Tuesday to return to Thailand to face charges that he concealed his ownership of millions of dollars worth of shares from the Thai stock exchange.

The order that he report by June 29 came just a day after state prosecutors said they would seek to have him and his wife tried for a suspicious land deal. In addition, an anti-graft panel has ordered 60.88 billion baht (US$1.88 billion; €1.40 billion) of his assets frozen on suspicion they were gained in an illicit manner.

Thaksin became a billionaire in the telecommunications sector before entering politics and serving as prime minister in 2001-2006.

Sunai Manomaiudom, director-general of the Department of Special Investigations, said police had strong evidence that Thaksin and his wife had secretly held shares through nominee companies in SC Asset Corp. PCL — then a Shinawatra family real estate company. The company's market capitalization as of Monday was about 3.05 billion baht (US$94.5 million; €70.5 million).

Sunai said they must present themselves to police between June 26 and June 29.

"If he intentionally refuses to come, we will issue an arrest warrant," said Sunai, who added that the case had nothing to do with politics.

The order gives Thaksin a deadline for returning home for the first time since he was ousted in a bloodless Sep. 19, 2006 coup while he was in New York. He has divided his time since then between a residence in London and travel around Asia. His wife and other family members continue to live in Thailand, but frequently travel abroad.

Thaksin was ousted after demonstrations calling for him to step down because of alleged corruption and abuse of power. Another business deal by his family, the 73.3 billion baht (US$1.9 billion; €1.55 billion at January 2006 rates of exchange) sale last year of telecommunications company Shin Corp. to a Singapore state investment company, contributed to public discontent.

Prime Minister Surayud Chulanont told reporters Tuesday, "He has the right to explain and he should be considered innocent for now. I want everything to proceed according to the justice system," he said.

Thaksin's lawyer and de facto spokesman in Thailand, Noppadol Pattama, quoted Thaksin as saying that he "is ready to follow the law and the courts' orders." But he declined to comment on the charges, and would not specifically say if Thaksin will return by the police deadline.

Thaksin, his wife Pojamarn, and her sister Bussaba Damapong — a former SC Asset executive — were charged with violating regulations requiring disclosure of corporate information to the Stock Exchange of Thailand.

Sunai said they and other family members controlled 79.87 percent of SC Asset — including an undisclosed 19.05 percent held through hard-to-trace nominee companies — and sold their interests to outside parties last year.

Thaksin and his wife are charged with violating disclosure rules by failing to report the sale of shares they controlled — an offense that carries a maximum penalty of two years in prison and a fine of 500,000 baht (US$15,500; €11,600).

Bussaba was charged with providing false information in filings to the stock exchange, and faces a maximum penalty of five years in prison.

The share price of SC Asset plunged 6.8 percent Tuesday to close at 8.85 baht (US$0.27; €0.20).

Sunai said police also found evidence that Thaksin violated a law on Cabinet members holding company shares, which carries a maximum penalty of ten years in prison and a 1 million baht (US$31,000; €23,000) fine. Serving ministers are not allowed to hold more than 5 percent of company shares or to be involved in company management.

Sunai said police would forward their evidence on that charge to the National Counter-Corruption Commission, which could recommend prosecution.

Asked if what would happen if Thaksin did not appear by the deadline, Sunai said that so long as Thailand's attorney-general approved Thaksin's indictment in absentia, he could request Thaksin's extradition.

- Associated Press

[sriracha john]

Exiled Thailand PM indicted for fraud

BANGKOK (UPI) -- The junta leading Thailand on Tuesday indicted deposed and exiled Prime Minister Thaksin Shinawatra and his wife for concealing assets.

Attorney General Pachara Yutidhammadamrong said the couple, along with employees of a holding company they own, have 10 days to appear in Bangkok, the Bangkok Post reported.

Department of Special Investigation director-general Sunai Manomai-udom said there were also charges of concealing investments while Thaksin was in power, The Nation reported.

"All must come in person, including Thaksin who cannot use political circumstances as an excuse or authorize any representatives," he said.

The couple is accused of breaching the National Counter Corruption Act, which bars state officials and their spouses from doing business with a state agency.

If convicted, they face imprisonment of up to three years and fines.

Thaksin was ousted in a bloodless coup in September while he was in New York, and now lives in London.

- United Press International

[Jai Dee]

No Bhanapot probe at bank

The president of Kasikornbank said yesterday the shareholding of Bhanapot Damapong, brother of Pojaman Shinawatra, was still "insignificant" and there was no need for an examination.

Prasarn Trairatvorakul said he had no idea if the shareholder was a nominee, or not.

His comment followed a news report that Damapong held 28.9 million shares representing 1.21 per cent of Kasikornbank and ranked number 11 on the list of major shareholders.

Prasarn said that in the last shareholders meeting Damapong had voted in line with a proposal made by bank's board of directors.

The bank also had no idea if the money that Damapong bought the bank's shares with came from any of 21 bank accounts frozen last week because of doubts about aspects of the Shin takeover.

Source: The Nation - 20 June 2007

[sriracha john]

No Bhanapot probe at bank

The president of Kasikornbank said yesterday the shareholding of Bhanapot Damapong, brother of Pojaman Shinawatra, was still "insignificant" and there was no need for an examination.

Prasarn Trairatvorakul said he had no idea if the shareholder was a nominee, or not.

His comment followed a news report that Damapong held 28.9 million shares representing 1.21 per cent of Kasikornbank and ranked number 11 on the list of major shareholders.

Insignificant?

Yesterday's SET share price of 71 baht per share for KBANK means he's got 2,051,900,000 baht worth of their stock.

*Disclaimer: I'm not a stock whiz nor a math whiz... so if I'm wrong with any of my calculations, my apologies to anyone correcting them.*

Edited June 20, 2007 by sriracha john

[Tony Clifton]

No Bhanapot probe at bank

The president of Kasikornbank said yesterday the shareholding of Bhanapot Damapong, brother of Pojaman Shinawatra, was still "insignificant" and there was no need for an examination.

Ah, the president of Kasikorn Bank belongs in this topic:

Corruption probes, Ministers won't point the finger.

Edited June 20, 2007 by Tony Clifton

[sriracha john]

DSI chief orders Thaksin to report by June 29

BANGKOK - Ousted Thai Prime Minister Thaksin Shinawatra must report to officials of the Department of Special Investigation (DSI) in person on Wednesday, Thursday or Friday to face charges of concealing assets, DSI director-general Sunai Manomai-udom warned Sunday.

Mr. Thaksin, now in self-imposed exile in England, cannot avoid coming home to defend himself on the charges by citing concerns regarding his personal safety because Prime Minister Gen. Surayud Chulanont has already guaranteed Mr. Thaksin's safety during his forthcoming stay in the country, said Mr. Sunai.

The deposed prime minister, his wife Pojaman, her relative Bussaba Damapong and a Thaksin company, SC Asset Corp, are facing charges of fraud at the DSI and the Shinawatras must report to the agency by June 29.

Mr. Sunai has said arrest warrants will be issued against Mr. Thaksin and his wife if they fail to appear before the authorities. He said the investigation found that Mr. Thaksin, while serving in the Cabinet, and his wife, secretly owned stocks through nominee companies in SC Asset, a real estate company operated by the Shinawatra family.

The couple allegedly violated regulations requiring them to disclose corporate information to the Stock Exchange of Thailand. Mr. Thaksin was also charged with holding shares in publicly listed companies despite a prohibition against serving Cabinet members to do so.

If found guilty, the ex-premier and his wife face a maximum jail term of five years and a fine equivalent to twice the value of the shares they had traded.

So far, none of the accused have sent representatives or sought postponement on appearing before the DSI, said Mr. Sunai.

- MCOT

Edited June 24, 2007 by sriracha john

[Old Man River]

Insignificant?

Yesterday's SET share price of 71 baht per share for KBANK means he's got 2,051,900,000 baht worth of their stock.

1.2% ownership in a listed company is insignificant, although management of the bank will be watching to see if additional amounts are purchased by related parties. This will be out of interest only and certainly not required.

[sriracha john]

Sonthi admits possibility Thaksin would flee to country without extradition treaty with Thailand

Gen Sonthi Boonyaratglin admitted Monday that there was a possibility that former prime minister Thaksin Shinawatra would flee to a country without extradition treaty with Thailand.

Sonthi was replying to a question by a reporter.

"Possible," Sonthi replied when the reporter ask if Thaksin would flee to such a country to escape legal actions related to the SC Assets share concealment case.

The Department of Special Investigation has issued a summon order for Thaksin to hear charges by Friday.

Sonthi, the chairman of the Council for National Security, said the government had yet to wait for the deadline to pass first before deciding whether to seek Thaksin's extradition.

- The Nation

[sriracha john]

ANALYSIS

Ex-PM playing a game with footy club, junta?

Is the name of the game now moving to an extradition charge against ousted prime minister Thaksin Shinawatra?

It looks very much so.

Sunai Manomai-udom, the director-general of the Department of Special Investigation (DSI), has threatened to lodge an extradition charge against Thaksin if he fails to show up in due course in Bangkok.

The DSI has ordered Thaksin and others to report to it between June 26 and 29 to acknowledge the criminal charges against them for alleged stock concealment in SC Asset before the property firm went public.

If Thaksin, who is now living in exile in London, fails to show up without justification, the DSI will pass the case on to public prosecutors for a formal criminal charge in the justice process. The next step is that the Thai government will request the UK government to extradite Thaksin back to Thailand to stand trial.

"We understand that seeking an extradition request from Britain is very difficult because the defendant has a right to defend himself. Thaksin might fight the extradition charge by arguing that he is a subject of political prosecution. Besides, he can argue that he is being unfairly treated," said Sunai.

"But his arguments would not stand because the DSI is pursuing a criminal case - not a political one. DSI is not treating him unfairly. The DSI was not set up by the National Security Council. Moreover, I am also a judge."

Britain might have to reluctantly handle another high-profile extradition case involving Thailand's former prime minister, who was ousted from office by a military coup.

It is a general understanding that the British government would not want to get involved in this matter, which could complicate its relations with Thailand. Preferably, it would like Thaksin to live quietly in London and renew his visa when it expires.

In the most recent case, the Thai government sought an extradition request against Pin Chakkaphak, the former chief of Finance One Group, which went under in the 1997 financial crisis.

Pin, who holds both American and Thai citizenship, sought to defend his extradition case in the UK, which has a rather tough law in favour of defendants. Pin argued that he should not be sent back to Thailand because there was no evidence of financial fraud against him. Besides, he was not sure that he would receive a fair trial because the Thai justice process was not equipped with a jury system. The Thai government lost the legal battle.

The extradition case against Rakesh Saxena, who was accused of cheating the now-defunct Bangkok Bank of Commerce, is not going anywhere. Rakesh is now seeking exile in Vancouver, Canada.

One political observer said matters relating to an extradition treaty with any country would be a long and time-consuming process and would not be to anybody's advantage.

He said most Western countries that had concluded extradition treaties with Thailand would have to examine if there would be a "free and fair trial" by independent courts before considering such a request.

Thaksin has also adopted a cautious strategy by agreeing to buy Manchester City Football Club for ฃ81.6 million (Bt5.4 billion).

Another political observer believes Thaksin will eventually acquire the English club in order to improve his chances of avoiding extradition. By owning Manchester City, Thaksin can apply for permanent resident status with the British government. This would make it even more difficult for the Thai government to seek his extradition.

Thaksin has also been appealing to the international community that he was an democratically elected leader who was ousted by an illegal military coup.

Earlier this year, whenever a question arose about the proper timing for Thaksin to be allowed to return to Thailand, Prime Minister Surayud Chulanont would reply that the best timing for him would be after the general election when there was more political stability.

"But now Surayud looks much more confident. He has even challenged Thaksin to return. The question is whether Thaksin really has the guts to come back because he would certainly have to go to jail," said one Cabinet minister.

Political Desk

The Nation

[sriracha john]

Thaksin's kids face 11 Billion Baht tax bill

Ousted prime minister Thaksin Shinawatra's children Panthongtae and Pinthongta are now subject to personal income taxes plus fines of 11.64 billion baht following their failure to pay taxes and fines since April 2, a source at the Revenue Department said.

"From they day they failed to pay the taxes, they are subject to fines of the same value as the subjected income tax. This is exclusive of the interest rate of 1.5 per cent per annum," the source said.

Panthongtae and Pinthongta failed to declare their taxable income after they bought 329.2 million shares of Shin Corp at the low price of Bt1 a piece from Ample Rich Investments in January 2006. Later, they sold those shares to a group of investors led by Singapore's investment arm Temasek Holdings at Bt49.25 a share, netting a differential of Bt48.25 a share.

At that time the Revenue Department said they did not need to pay any tax. The department reversed its stance after the coup in September last year.

The department, under a new chief, has recently completed an investigation into the tax issue, said the source.

"They should have paid taxes of Bt5.69 billion by April this year but they did not, so they have been fined, raising the total tax amount to Bt11.64 billion," according to the tax official.

The source said that both paid only Bt100,000 for their personal income earned in 2006.

Sanit Rangnoi, director-general of the Revenue Department did not confirm the tax amounts but said that tax officials had concluded the case.

He said the two have to pay the tax within 30 days. If they do not pay as ordered, the department has the authority to confiscate their assets.

Sirote Swasdipanich, the former chief of the Revenue Department, lost his job as a result of the case. He was accused by the Assets Examination Committee of failure to collect taxes from the two after the controversial transaction.

- The Nation

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

The financial woes of Thakky continue to mount.

Edited June 29, 2007 by sriracha john

[Old Man River]

Thaksin's kids face 11 Billion Baht tax bill

Panthongtae and Pinthongta failed to declare their taxable income after they bought 329.2 million shares of Shin Corp at the low price of Bt1 a piece from Ample Rich Investments in January 2006. Later, they sold those shares to a group of investors led by Singapore's investment arm Temasek Holdings at Bt49.25 a share, netting a differential of Bt48.25 a share.

At that time the Revenue Department said they did not need to pay any tax.

Sirote Swasdipanich, the former chief of the Revenue Department, lost his job as a result of the case. He was accused by the Assets Examination Committee of failure to collect taxes from the two after the controversial transaction.

- The Nation

For this very special case there has been different interpretations of the tax laws at play. As many know, Thai's don't pay capital gains taxes on trades which happen in the stock market (SET). They also don't pay income taxes on these profits. The Ample Rich transactions occurred in the SET, hence, the Revenue Dept's initial finding that no taxes were owing. However, subsequently the Thai government has ruled that since the trades resulted in unreasonably high profits, normal tax laws on trades in the SET would not apply and income taxes should be paid instead.

It should be noted that the main charges against Sirote Swasdipanich, the former chief of the Revenue Department as well as the Revenue Dept's legal team relate to their failure to collect taxes on Khunying Potjamon's cash gift to Banapot which occurred ten years prior (before the TRT was formed). The chief of the Revenue Department at that time has not been charged. There is a separate tax fraud investigation in that one, although the people from the Revenue Dept are not involved with this, only their ruling on the gift is at issue.

[Plus]

For this very special case there has been different interpretations of the tax laws at play. As many know, Thai's don't pay capital gains taxes on trades which happen in the stock market (SET). They also don't pay income taxes on these profits. The Ample Rich transactions occurred in the SET, hence, the Revenue Dept's initial finding that no taxes were owing. However, subsequently the Thai government has ruled that since the trades resulted in unreasonably high profits, normal tax laws on trades in the SET would not apply and income taxes should be paid instead.

Where did you get this interpretation????

There were two transactions separated by only a day or two.

First set of transactions, Ample Rich transactions, didn't occure in the SET. SET didn't even know about that company's existence.

Ample Rich privately sold shares to Thaksin's children at 1 baht. The market value was about 49 baht at that moment and so the kids are taxed on this income. This is a normal practice.

They are not taxed on the second transaction - kids to Temasek.

[sriracha john]

Thaksin's children ordered to pay US$362 million tax

BANGKOK - The children of ousted Thai prime minister Thaksin Shinawatra must pay 11.45 billion baht (US$362 million) in back taxes and fines from the sale of holdings in the family telecoms empire, a top tax official said on Friday.

Thaksin's son and daughter -- Phantongtae and Pinthongta -- had 30 days to pay once they received the order, to be sent to them next week, department chief Sanit Rangnoy told reporters.

The Shinawatra children could appeal against the order to a Revenue Department panel, Sanit said.

The payment order came seven months after a probe panel set up by the government accused his children of tax violation in the US$3.8 billion sale of Shin Corp to Singapore's Temasek.

The tax-free Shin sale outraged urban middle-class voters who swelled Bangkok street demonstrations, leading to the overthrow of Thaksin.

Phantongtae and Pinthongta acquired the Shin shares through Ample Rich Investments Ltd, an offshore company which Thaksin founded, at 1 baht each.

They then sold 329 million shares in Shin, which has interests in telecommunications, satellites and television, to Temasek at 49.25 baht each.

Thaksin, who lives in exile in London, always insisted the Shin sale satisfied all the rules in a country where share sales done through the stock market, as the family holdings were, are not taxed.

- Reuters

[Old Man River]

There were two transactions separated by only a day or two.

First set of transactions, Ample Rich transactions, didn't occure in the SET. SET didn't even know about that company's existence.

Ample Rich privately sold shares to Thaksin's children at 1 baht. The market value was about 49 baht at that moment and so the kids are taxed on this income. This is a normal practice.

They are not taxed on the second transaction - kids to Temasek.

So, you are saying that if a Thai purchases a listed stock at THB 10 per share and the value the next day is THB 20, personal income taxes graduated to 37% are owed on this amount based on mark to market? What tax law is this? From my understanding there is a tax owed, but it is 15% and is paid when the listed stock is sold.

On the Ample Rich side, this offshore company has been deemed an onshore company for tax purposes with the THB 1 per share earned being taxable in Thailand (with the kids owing the money as directors of Ample Rich). This does make sense.

[sriracha john]

Finance chief, six others face probe

AEC to examine whether officials were party to alleged tax evasion

Finance Ministry permanent secretary Suparat Kawatkul is among seven state officials who the Assets Examination Committee (AEC) yesterday decided to investigate for possible malfeasance in connection with tax payments by the Shinawatra family over its sale of Shin Corp last year.

The others are former Revenue Department director-general Sirote Sawatpanich, Paitoon Pongkesorn, Bencha Luischaroen, Chamras Yaemsoithong, Moreerat Bunyasiri and Krit Wipulanusat.

The AEC also accused Pranee Wetpruekpitak, a close aide of Khunying Pojaman Shinawatra, of involvement for sending letters asking for tax advice to the Revenue Department.

Suparat sent two aides to the press conference called by the AEC to announce its decision. They held mobile phones close to the microphone so that Suparat hear the exact wording of the AEC's decision.

AEC spokesman Sak Korsaengruang said that the body resolved to set up a panel comprising himself and eight others to look into whether the seven officials were guilty of malfeasance or dereliction of duty in connection with the alleged tax evasion by Pinthongta and Panthongtae Shinawatra, children of former premier Thaksin Shinawatra.

Sak said that according to Article 39 of the Revenue Code, the share sale by Pinthongta and Panthongtae was taxable because they bought the Shin Corp shares outside the stock market as Ample Rich directors. However state officials ruled that the sale was not taxable.

Sak denied that the AEC was repeating an earlier investigation of Sirote by the National Counter Corruption Commission, in which he was found guilty of malfeasance and removed from his post.

"It is a different time and different action," he said.

Sak said Viroj Laohapan, chairman of an AEC panel, had reported that the Revenue Department had appraised Panthongtae and Pinthongta's tax liability over the Shin Corp share sale at up to Bt12 billion.

- The Nation

[Old Man River]

Sak said that according to Article 39 of the Revenue Code, the share sale by Pinthongta and Panthongtae was taxable because they bought the Shin Corp shares outside the stock market as Ample Rich directors. However state officials ruled that the sale was not taxable.

The Nation

This is all very interesting. When Thaksin was PM, if there was a law that was not in his best interests, he had it changed. The Junta are basing their judgments on interpretations of existing laws.

The ruling is that Thaksin's children owe income taxes on the benefit derived from buying the SHIN shares from Ample Rich at THB 1 per share and selling them three days to Temasek for THB 49.25 per share. According to reports, the Junta is arguing that, pursuant to sections 39 and 40(8) of the tax codes, even though the shares involved an unrealized gain the transfer had a clear financial benefit that can be calculated in monetary terms and therefore this benefit is assessable for tax purposes.

Thaksin's attorneys are reportedly arguing that although the shares were purchased outside of the stock exchange (SET), the financial benefit was not realized until the shares were sold and that sale occurred in the SET (greatly limiting the tax liability). Reportedly, one tax judge has called this transaction a loophole because normally, actual income has to be gained before taxes are calculated. It now looks like this loophole is being closed, retroactively.

[Tony Clifton]

The AEC also accused Pranee Wetpruekpitak, a close aide of Khunying Pojaman Shinawatra, of involvement for sending letters asking for tax advice to the Revenue Department.

I like this, letters from Thaksin the Lawbreaker pretending to be asking for tax advice, more like subliminally ordering what he wanted done. Anyone receiving those would immediately perceive the letters as a threat if they did not go into submission mode while under Thaksin's rule.

Doesn't always pay to join the gang.

[Old Man River]

The AEC also accused Pranee Wetpruekpitak, a close aide of Khunying Pojaman Shinawatra, of involvement for sending letters asking for tax advice to the Revenue Department.

I like this, letters from Thaksin the Lawbreaker pretending to be asking for tax advice, more like subliminally ordering what he wanted done. Anyone receiving those would immediately perceive the letters as a threat if they did not go into submission mode while under Thaksin's rule.

Doesn't always pay to join the gang.

While I understand in this case it may be viewed as a veiled threat, in general, what is wrong with asking the Revenue Dept. for tax advice prior to a major transaction? This is normal. There must be more to this story.

[Tony Clifton]

We will eventually see if the letters are still around. Maybe they have conveniently disappeared long ago.

[Plus]

Oldmanriver,

"The white paper would highlight findings from a joint study done by the Press Council of Thailand (PCT) and the Law Society of Thailand...

Thaksin’s two children, his younger sister and two Damapong in-laws reported their equity stakes as shares received and held in private possession.

Based on the Revenue Code, shares placed outside the stock market are liable to income tax upon sale. These are not tax-exempted securities as defined by stock-exchange regulations, Pongsak [PCT chairman] said.

When the Shinawatra and Damapong families handed over Shin shares to their stockbrokers in order to commence the sale transaction in the stock market, they incurred income tax liabilities as they had converted shares into securities for trading in the stock market, he said."

http://nationmultimedia.com/search/page.ar...date=2006-02-01

That was printed only two weeks after the deal.

This happens to all Thais who exercise their stock options. EGAT employees were taxed even before the company was listed. You buy shares from your company at 1 baht or so, sell them at market value and make a handsome profit, and pay taxes, too. Ample Rich shares were no different - the company sold shares to its directors.

[sriracha john]

More scandals, more corruption, more investigating....

In its meeting yesterday, the AEC heard a progress report from member and state auditor Jaruvan Maintaka, who is in charge of tracking down Thaksin's assets.

Another AEC member Saowanee Asawaroj said her investigation into irregularities relating to a 1.9 Billion Baht project to establish a central laboratory to check on agricultural products had made some headway.

Recent evidence indicated there may have been collusion in the bidding process as two bidders were represented by the same individual, she said.

The slow progress in the case was attributed to the time-consuming search for the money trail to nail the culprits, she said.

- The Nation

[Old Man River]

Oldmanriver,

"The white paper would highlight findings from a joint study done by the Press Council of Thailand (PCT) and the Law Society of Thailand...

Thaksin’s two children, his younger sister and two Damapong in-laws reported their equity stakes as shares received and held in private possession.

Based on the Revenue Code, shares placed outside the stock market are liable to income tax upon sale. These are not tax-exempted securities as defined by stock-exchange regulations, Pongsak [PCT chairman] said.

When the Shinawatra and Damapong families handed over Shin shares to their stockbrokers in order to commence the sale transaction in the stock market, they incurred income tax liabilities as they had converted shares into securities for trading in the stock market, he said."

http://nationmultimedia.com/search/page.ar...date=2006-02-01

That was printed only two weeks after the deal.

This happens to all Thais who exercise their stock options. EGAT employees were taxed even before the company was listed. You buy shares from your company at 1 baht or so, sell them at market value and make a handsome profit, and pay taxes, too. Ample Rich shares were no different - the company sold shares to its directors.

Plus, this does seem cut and dry and certainly explains how the Revenue Dept. could issue the written tax opinion as they did, since at that time (prior to the sale to Temasek) the existence of Ample Rich had not yet been disclosed. A day after the article in The Nation, the Bangkok Post did a write up of this case and never mentioned this law as being applicable to the transaction. I wonder why not.

Much more interesting is how did the country's foremost tax lawyer and former Chairman of the Advisory Board of the Stock Exchange of Thailand who structured the deal miss something as simple as this? This doesn't seem likely unless there is more to this than we know.

One has to wonder, why didn't this tax attorney not structure it so that Ample Rich sold the shares to Thaksin's kids at market price? That way there would be no benefit derived by the kids to be taxed and any profits made by the offshore Ample Rich would not be taxed in Thailand until the profits were brought into Thailand (which I doubt would have happened). While since that time the Junta has declared the offshore company as being onshore, at that time they couldn't expect this.

I do hope this gets made public as I think there is more to it than meets the eye. It is a very interesting tax case.

[A_Traveller]

From Bangkok Post breaking news:-

Assets Scrutiny Committee on Wednesday allowed two grown-up children of ousted premier Thaksin Shinawatra to postpone their testifying to the panel on Shin Corp share sale, ASC spokesman Sak Korsaengruang said.

• Mr Panthongtae to meet with the panel at 9am on July 18, after his lawyer submitted a medical certificate from Rama IX hospital that he suffered food poisoning.
  
• Ms Pinthongta to meet with the panel at 10 am on August 24, after it received a letter from a university she attends in London that she will have to take an exam in mid-August.
  

Anyone know where Ms Pinthongta is studying, since the academic year is September to June? I don't know of any normal educational examinations scheduled during the long vac.

Regards

Edit PS There are resits and 'special needs' run during this period, but I'm assuming {maybe unwisely} that she is not subject to such.

Edited July 4, 2007 by A_Traveller

[bruceboy]

Thaksin's children to be demanded to pay income tax at 37 per cent rate

The Revenue Department will demand two children of ousted prime minister Thaksin Shinawatra to pay personal income tax for proceeds from the sale of Shin Corp shares to Temasek, the department chief said Tuesday.

"I yesterday [Monday] ordered tax officials to proceed legal procedure to collect personal income taxes from Panthongtae and Pinthongta, and the tax amount would be about 37 per cent of income from shares transaction of 329.2 million shares," Sirote Swasdipanich, director general of the Revenue Department told reporters Tuesday.

He said he had informed Deputy Prime Minister and Finance Minister M R Pridiyathorn Devakula about the plan to demand the two to pay the taxes.

According to the tax law and regulation, Panthongtae and Pinthongta son and daughter of Thaksin has to pay personal income tax by 30 September, a half year tax payment for income rather than salary earning. But they did not file tax payment so the department has to proceed legal action by inviting them to report to officials.

Source: The Nation - 7 November 2006

Thanks for the info.