Luxury car owners 'dodge Bt1.8bn in tax'

[webfact]

Luxury car owners 'dodge Bt1.8bn in tax'

By Piyanuch Thamnukasetchai 
The Nation

 

 

BANGKOK: -- The Customs Department estimates that the owners of 101 luxury vehicles have failed to pay Bt1.8 billion in tax, an informed source revealed on Monday.

 

The tax assessment covered 14 Ferraris, 49 Maseratis and 38 Lamborghinis being investigated on suspicion of tax evasion by the Department of Special Investigation (DSI).

 

On Monday, DSI chief Pol Colonel Paisit Wongmuang confirmed that he had received the tax assessment from the Customs Department, but put the figure at about Bt1 billion.

 

“So, the next step we will charge the importers of these luxury cars,” he said. 

 

The DSI has also been asked to investigate car dealers who imported luxury cars under the name of Thai students who studied overseas. 

 

Thai laws provide for a significantly lower import tax rate for students who bring back to Thailand the cars they used overseas.

 

The normal tax rate is 200 per cent, but returning students can pay as little as 30 per cent. These vehicles cannot be resold within three years of being imported. 

 

Source: http://www.nationmultimedia.com/detail/national/30322370

 

-- © Copyright The Nation 2017-08-01

[ChrisY1]

Crazy place sometimes.....all these vehicles have to come through Thai customs....they have the option of proper scrutiny at that time....but obviously don't bother..for a fee!

However, when returning students only have to pay 30% tax on vehicles they bring in.....and most of these kids would come from wealthy families, then the law's an ass!

[keith101]

When the import tax is 200% I'm not surprised people are trying to avoid it and with luxury tax on top wow .

[JonnyF]

That's a nice scheme. Study abroad, buy a top of the range Lambo and bring it back saving 170% tax on a car that costs 40 million Baht in Thailand. 3 years later sell it at Thai market value and your education is paid for and a nice tidy profit as well. 

 

That's assuming you can only do it for one car, the article states "the cars they used". Nice little earner for those wealthy enough to afford overseas education and exotic supercars.

[mikebell]

Customs reckon 1.8 billion; police chief reckons only one billion!  Now where did that .8 go?

[YetAnother]

3 hours ago, webfact said:

The normal tax rate is 200 per cent,

that true ? thought it was 300%

[trogers]

Seems the wealthy are not so wealthy after all...

[halloween]

NZ had a similar tax arrangement to the Thai student deal back in the 70's, as well as prohibitive taxes on imported vehicles.

[kwak250]

I have always been interested in importing a car here now it seems I need to take a thai student overseas so she can drive my Ferrari and them import it back here.

Mmm I wonder what the wife will say?

[overherebc]

26 minutes ago, kwak250 said:

I have always been interested in importing a car here now it seems I need to take a thai student overseas so she can drive my Ferrari and them import it back here.

Mmm I wonder what the wife will say?

After being 'overseas' with your Thai student I think your wife won't be saying anything to you. ?

Or is it 3 years before you can bring the car back?

[smotherb]

37 minutes ago, kwak250 said:

I have always been interested in importing a car here now it seems I need to take a thai student overseas so she can drive my Ferrari and them import it back here.

Mmm I wonder what the wife will say?

Why not make your wife the Thai student?

 

[mike324]

4 hours ago, JonnyF said:

That's a nice scheme. Study abroad, buy a top of the range Lambo and bring it back saving 170% tax on a car that costs 40 million Baht in Thailand. 3 years later sell it at Thai market value and your education is paid for and a nice tidy profit as well. 

 

That's assuming you can only do it for one car, the article states "the cars they used". Nice little earner for those wealthy enough to afford overseas education and exotic supercars.

Its only for 1 car, using a students name was popular. Its a loop hole people have been using, which I don't think authorities should try to close down. The other loop hole most people don't know is that any Thai working in a foreign country can also bring back a car like a student and pay minimum tax. 

 

So you can actually pay a worker to go overseas and "work" put the car under his/her name,  store it in a private garage for 3 years. Then ship the car back, and hold it for another 3 years under the other persons name, while the buyer can just drive it, all paper work can be sign and prepared ahead of time for the transfer. Its a win win for thai worker and buyer.

[inThailand]

I thought wealthy Thais sent their kids overseas for a better education? It was for a cheaper Ferrari for Papa!

[Chris Renaix]

6 hours ago, YetAnother said:

that true ? thought it was 300%

Honestly I'm quite sure that for this range of supercars, it's 328%

[Kinnock]

4 hours ago, smotherb said:

Why not make your wife the Thai student?

 

That may be missing one of the main points of the plan?