‘Luxury cars declared at way below real value, costing state billions’

[ukrules]

7 hours ago, wakeupplease said:

328 per-cent tax rate

300% on a bottle of wine

 

Free Trade agreements on the other side of the world need to see 300% on all imports including rice from certain country's, that will change thing quickly

 

But I guess you would soon hear

 

But But We are a 3rd world country excuse.

 

3rd world country's do not have that many Lambo's lying about do they.

 

Yeah, I hope someone reciprocates the sh!t out of this.

 

[lvr181]

While the investigations are proceeding, freeze the assets of Niche Cars and its owner/s (whether they be individuals or other companies), check documentation by Customs and any other Government agencies (to see who is signing the paperwork) pending court action and determination of payment and the final payment of taxes. Unfortunately, it may be that some owners have bought the cars not knowing that the correct import tax/duties has not been paid, impound the vehicles on a secure military base and give the "owner" 60 days to pay or the vehicle/s will be forfeited. If a genuine owner feels he/she has been unfairly treated then they can take court action against the car seller. 

 

The minimum "real value" of the cars is what the importer paid for them, plus associated costs? 

 

Stop with all this talk talk talk and carryout some real action to stop this corruption! Collect the taxes but don't forget to uncover the corrupt people behind the avoidance or minimisation of the tax due and prosecute them!

 

 

[JAG]

While the investigations are proceeding, freeze the assets of Niche Cars and its owner/s (whether they be individuals or other companies), check documentation by Customs and any other Government agencies (to see who is signing the paperwork) pending court action and determination of payment and the final payment of taxes. Unfortunately, it may be that some owners have bought the cars not knowing that the correct import tax/duties has not been paid, impound the vehicles on a secure military base and give the "owner" 60 days to pay or the vehicle/s will be forfeited. If a genuine owner feels he/she has been unfairly treated then they can take court action against the car seller. 
 
The minimum "real value" of the cars is what the importer paid for them, plus associated costs? 
 
Stop with all this talk talk talk and carryout some real action to stop this corruption! Collect the taxes but don't forget to uncover the corrupt people behind the avoidance or minimisation of the tax due and prosecute them!
 
 

Or, perhaps, seize all the assets of "Niche Cars", and allow the businesses to restart, after appropriate informal fiscal arrangements have been made, but this time in the hands of a person or persons who more properly understand the need for diligence in dealibg regularly with the relevant authorities?

That would send the right message...

[little mary sunshine]

The rich get richer and hold on to every

Baht by screwing the government out of

tax money;  the poor are still working for

B 300 or  less each day...where is the

justice....Oh, TIT.

[tomyummer]

So many things wrong with this case. If Niche Cars was guilty of all tax evasion charges, Lamborghini (Audi) may be in trouble for fixing receipts for them unless all docs were faked upon arrival. Being one of the few actual high priced super car brands, the distributor price could be below (in %) what mass luxury car import prices would be due to frequency of purchases.

 

The DSI really needs to look more at the grey importers in the market, they are the real trouble makers in the industry which give genuine importers a bad name. Not saying Niche Cars was innocent, but they should look at the root of the problem.

 

And the billions that the government loses from this fraud? Check the pockets greased at the customs department which allows this under-valuing operation to happen. It's not just at the port, it goes all the way up where each gets a piece of the pie just like any other department.

 

 

[Naam]

On 5/22/2017 at 1:58 AM, little mary sunshine said:

The rich get richer and hold on to every

Baht by screwing the government out of

tax money;  the poor are still working for

B 300 or  less each day...where is the

justice....Oh, TIT.

it is hard to believe that those who pay 10 million or more for a car are holding on to every Baht.

[little mary sunshine]

36 minutes ago, Naam said:

it is hard to believe that those who pay 10 million or more for a car are holding on to every Baht.

I believe the story is about how those with money cheat on taxes and import fees

not how much they spend.  They Try to hold on to every Baht by cheating

[Ahab]

On 5/20/2017 at 11:27 AM, impulse said:

 

This is one of those things that scares me about retiring to Thailand.  If I buy an imported car from a licensed dealer, thinking in good faith that the taxes have been paid, why would I get hit with tax evasion, huge taxes and potential confiscation if my side of the documentation is clear?

 

One more huge financial liability based on the vagaries of Thai laws and their enforcement.

 

Just buy a car from a dealer in Thailand, problem eliminated.

[Ahab]

On 5/21/2017 at 7:09 AM, JAG said:

Or, perhaps, seize all the assets of "Niche Cars", and allow the businesses to restart, after appropriate informal fiscal arrangements have been made, but this time in the hands of a person or persons who more properly understand the need for diligence in dealibg regularly with the relevant authorities?

That would send the right message...

Good idea and a good place to start. They also should seize all assets of anyone suspected in the scheme until all applicable taxes have been paid in full.

[impulse]

2 minutes ago, Ahab said:

Just buy a car from a dealer in Thailand, problem eliminated.

 

You mean like the high end dealer in the OP, who seem to be in all kinds of trouble?  I'd imagine that their customers are pretty nervous right about now- and for the foreseeable future. 

 

From the OP:

 

Currently, the owners of 73 vehicles had ignored a DSI summons related to inquiries into whether their vehicles were illegal or linked to tax evasion. So, the DSI warned people to be careful about buying a luxury car, as they might end up getting a vehicle linked to tax evasion and have to pay huge taxes later.

[CantSpell]

On 5/20/2017 at 9:53 AM, rooster59 said:

“Suspected offenders include local politicians, policemen, customs officials, former land transport officials and importers,” he said. 

What are the words for this?

"The usual suspects" or "the real mafia" ?

 

 

[USPatriot]

I wonder if they will go after current owners.

[USPatriot]

I do not know the finer details but it is my understanding the money went to the importer (dealer was not the importer) to make things legit and this did not come to fruition, making a dodgy import legit goes beyond a "Hi Customs. whoopsie, my bad, here's the money owed" and palms need to be greased to help the process.
 
To summarize, he paid well over the odds  and is left with a car that is dodgy..... hindsite he would have been better to buy something correctly imported but this vehicle was priced well and on face value all the paperwork looked legit, or so iam told.

If the dealer paid way under market value then he knew.

[Naam]

4 hours ago, little mary sunshine said:

I believe the story is about how those with money cheat on taxes and import fees

not how much they spend.  They Try to hold on to every Baht by cheating

how do you know WHO cheated? the dealer or the client who bought the car perhaps in good faith? as i mentioned before i bought several times imported cars and i did NOT cheat.

[impulse]

2 minutes ago, Naam said:

how do you know WHO cheated? the dealer or the client who bought the car perhaps in good faith? as i mentioned before i bought several times imported cars and i did NOT cheat.

 

But are you nervous anyway?  

 

(Just taking the piss, BTW- I don't suspect you did cheat)

[Naam]

3 hours ago, impulse said:

3 hours ago, Ahab said:

Just buy a car from a dealer in Thailand, problem eliminated.

 

You mean like the high end dealer in the OP, who seem to be in all kinds of trouble?

some people without any idea have to add their %$$ )*(*(& 

[Naam]

3 minutes ago, impulse said:

 

But are you nervous anyway?  

 

(Just taking the piss, BTW- I don't suspect you did cheat)

not nervous at all. got all correct documentation and hope it's not fake 

 

and what ever car i bought was a fistful of millions and not double digit.

Edited May 23, 2017 by Naam

[YetAnother]

do customs people do anything ?

[DLang]

I reckon that the 328% tax on any item should be made illegal. 

[Naam]

4 hours ago, little mary sunshine said:

4 hours ago, Naam said:

it is hard to believe that those who pay 10 million or more for a car are holding on to every Baht.

I believe the story is about how those with money cheat on taxes and import fees

not how much they spend.  They Try to hold on to every Baht by cheating

those without money can't cheat on taxes and import duties. it's difficult to cheat a vendor when buying street food or cheat the cashier of a 7/11 when buying a bottle of Chang.

[Naam]

3 minutes ago, YetAnother said:

do customs people do anything ?

they are accustomed to charge customs duties. a difficult job!

[Mattd]

4 hours ago, Ahab said:

Just buy a car from a dealer in Thailand, problem eliminated.

??? But Niche Motors are the official dealers in Thailand for Lamborghini and Mclaren.

 

Somebody somewhere within customs etc. has been making a load of cash from this scam if it is to be believed, the dealer / importer could not have done this alone, $105,000 = 3,622,000 THB give or take, even after taking the tax and profit in to account, then this would seem a bit low for cars retailing here in excess of 25 - 30,000,000 THB!

 

One thing is for sure, if you or I tried to import one, then customs would know the real (and some) value of the car for tax purposes!!!

 

As a footnote, their showroom at km1 on the motorway looked closed on Friday and Sunday afternoon as I went past.

[Naam]

5 minutes ago, Mattd said:

One thing is for sure, if you or I tried to import one, then customs would know the real (and some) value of the car for tax purposes!!!

you bet your sweet butt!

[Woodsie888]

6 hours ago, Naam said:

not nervous at all. got all correct documentation and hope it's not fake 

 

and what ever car i bought was a fistful of millions and not double digit.

I hope it's not fake too Naam!

On a good day with the sun shining you can buy a new CLS 220/250d with a reasonable spec for around £35,000 excluding VAT.

That's approx THB 1,600,000 give or take. Add some freight which is currently around £1,600 and you've got CIF THB 1,650,000 or a little more.

Many people on this board are quoting tax/duty etc at 328% which makes the car more than THB 7,000,000 not including the local dealer margin.

Therefore it seems unusual in the least to see these cars as an example being offered for sale at 4,000,000 - 4,500,000 compared to MB TH at 4,790,000.

I expect MB TH, considering it is 100% German owned to have quite a purchase price advantage over the usual UK supplier who buys from UK main dealers and sells to TH importers.

There is a lot more I could add, but I think you get the picture.

 

 

[wakeupplease]

Been going on for years, I could even name one at a port that will do it for 30% and he is a bigish name still at it today, in fact the whole family which includes A BIb and a attorney at BSCC are at it.

[Naam]

1 hour ago, Woodsie888 said:

There is a lot more I could add, but I think you get the picture.

there's something missing in your picture Woodsie. the CLS you mentioned has an 1886ccm twin turbo engine. neither the engine's displacement nor it's horsepower invokes the 328% tariff.

 

moreover, there's also no problem to buy a new left hand drive Benz (or any other car) in Germany or anywhere in the European Union. all European car manufacturers sell their models at different prices in different countries. there was a time when you could buy any German car 20-25% cheaper in Belgium. and since years (starting 2009) nobody in Germany buys an above average value car at list price. any published prices can't therefore be used for a comparison, respectively calculation of import duties (as your did).

 

summary: the infamous 328% duty does not apply to a bread-and-butter CLS Diesel

 

Quote

Passenger Cars:

Hybrid, fuel cell and electric vehicles: 10% (11.2%)

Cars < 1300cc gasoline powered, approved under the eco-car program: 17% (20.9%)

Cars powered by motorcycles engines < 250cc: 5% (5.3%)

Cars powered by NGV: 20% (25.6%)

E20 Compatible Cars < 2000cc and < 220HP: 25% (34.5%)

E20 Compatible Cars < 2500cc and < 220HP: 30% (44.8%)

E20 Compatible Cars < 3000cc and < 220HP: 35% (56.9%)

E20 Compatible Cars > 3000cc OR >= 220HP: 50% (111.1%)

Other Cars < 2000cc and < 220HP: 30% (44.8%)

Other Cars < 2500cc and < 220HP: 35% (56.9%)

Other Cars < 3000cc and < 220HP: 40% (71.4%)

Other Cars > 3000cc OR >= 220HP: 50% (111.1%)

 

Edited May 23, 2017 by Naam
edited with addendum for clarification

[Naam]

50 minutes ago, wakeupplease said:

Been going on for years, I could even name one at a port that will do it for 30% and he is a bigish name still at it today, in fact the whole family which includes A BIb and a attorney at BSCC are at it.

E20 Compatible Cars < 2000cc and < 220HP: 25% (34.5%)  yawn...

[Woodsie888]

7 minutes ago, Naam said:

there's something missing in your picture Woodsie. the CLS you mentioned has an 1886ccm twin turbo engine. neither the engine's displacement nor it's horsepower invokes the 328% tariff.

 

moreover, there's also no problem to buy a new left hand drive Benz (or any other car) in Germany or anywhere in the European Union. all European car manufacturers sell their models at different prices in different countries. there was a time when you could buy any German car 20-25% cheaper in Belgium. and since years (starting 2009) nobody in Germany buys an above average value car at list price. any published prices can't therefore be used for a comparison, respectively calculation of import duties (as your did).

Actually the 220d is 1950cc and the old 250d is 2143cc Naam.

I'm not sure what the effective tax rate on those is and would appreciate you enlightening me and then we can calculate what the landed cost "should be".

I've never been involved in importing to Thailand, only exporting to, and exporting from.

The time when buying from Europe at a large discount to UK pricing is well and truly long gone, since about 2008 in fact.

I've had a bit of practice at this business as it is what I have done for most of my life.

I stopped selling to Thailand after the floods when they all walked away from their deposits.

I don't want to turn this in a slinging match, but anyone who thinks they have a kosher grey market car in Thailand is sorely mistaken and I can prove it.

 

[Woodsie888]

5 minutes ago, Naam said:

E20 Compatible Cars < 2000cc and < 220HP: 25% (34.5%)  yawn...

Best you demonstrate the complete calculation Naam.

yawn...

[Naam]

17 minutes ago, Woodsie888 said:

Best you demonstrate the complete calculation Naam.

yawn...

this is not my calculation but an excerpt from Thai car import tariffs.