Thaksin's children fined and taxed 320 million dollars .....

[PeteC]

Some justice is being done. Now, please tell me Mr. T and his advisors didn't collude in this evasion in the first place? Pete
_________________________________________________

The children of ousted premier Thaksin Shinawatra have been ordered to pay 320 million dollars over a controversial sale of shares in telecoms giant Shin Corp, a tax official has said.

Panthongtae Shinawatra and Pinthongta Shinawatra, Thaksin's son and elder daughter, had to pay a total of 11.7 billion baht (320 million dollars) in taxes and fines by March next year, the official said.

The family sold their 49 percent stake in Shin Corp to Singapore's state-run Temasek Holdings for 1.9 billion dollars under a tax-free deal in January.

Ruengkrai Leelitwattana, an advisor to the auditor general, said financial regulators would also order the children to pay 6.1 billion baht in fines for failing to pay taxes following the Shin Corp deal.

"Apart from taxes, they are subjected to pay fines for failing to pay taxes on time," Ruengkrai said.

Thai Finance Minister Pridiyathorn Devakula said the payment order against Thaksin's children was not politically motivated following the bloodless coup on September 19 that toppled the Thaksin government.

"Our decision was in line with the tax law. This had nothing to do with the (post-coup) government," the minister told reporters.

The 1.9 billion dollar sale triggered months of street protests demanding Thaksin's resignation over alleged abuse of power and corruption, which eventually led to the coup against him.

After the 49-percent buyout of Shin Corp, a Temasek-led group of investors increased its total stake to 96 percent through a mandatory offer for the outstanding shares, sparking allegations of a possible violation of foreign ownership rules here.

Under Thai rules, foreign investors can own up to 49 percent in telecom companies. The question is whether local entities acted on Temasek's behalf, in which case their holdings might not be counted as separate.

The post-coup Thai government has vowed to investigate the deal. A Thai court is due to hear a case against Shin Corp, now under control of Temasek Holdings, for alleged violations of foreign ownership regulations.

[lomuamart]

I've been following that story today, Pete.
What a shame if the kids lose some pocket money. I'd seen that their lawyer was saying that he couldn't understand how everything had been "above board" before the coup, as the children had negotiated with the tax authorities and now it had changed.
Wait and see, eh?

[sargeant]

i am still standing by my bed but it looks as if things are moving

[STEVE G]

BANGKOK POST:
A fact-finding committee has been set up to probe a tax query made to a finance official and the Shinawatra family prior to the sale of Shin Corp shares between the Shinawatra siblings and Ample Rich. The probe was ordered by Deputy Prime Minister and Finance Minister M.R. Pridiyathorn Devakula, said finance permanent secretary Suparut Kawatkul.

He said the investigation is to establish who should be held responsible for the inquiry which gave assurances to the Shinawatras that the transaction in the stock market would be tax-exempt.

The inquiry was made without knowledge of the Revenue Department chief and the finance permanent secretary.

He said a disciplinary probe will be ordered against those found in the wrong.

Inspector-general Benja Louischaroen is reported to have provided a written response dated Sept 21, 2005 to a tax inquiry by Pranee Vejpruekpitak, the Shinawatra family's representative.

In the letter, Ms Benja, who was then a tax specialist, explained the share transactions between Panthongtae and Pinthongta Shinawatra, the children of ousted prime minister Thaksin, and Ample Rich, were not liable for tax.

At that time, senior finance officials, including those at the Revenue Department also spoke in the siblings' favour when the tax dispute came to the public's attention after the Shin-Temasek deal.

However, the department sent out a tax bill on Monday to the siblings demanding they pay tax on the gains made from buying 329.2 million shares in Shin Corp from Ample Rich at one baht per share and selling them on to Temasek at 49.25 baht per share.

Meanwhile, as tax authorities came under pressure to investigate Shin Corp share transactions for tax liabilities, Democrat executive Kobsak Sabhavasu zeroed in on a sum of 1.7 billion baht that Ample Rich earned as dividends from its Shin Corp shares.

Ample Rich bought 329.2 million shares in Shin Corp from Mr Thaksin at one baht apiece and earned about 1.7 billion baht, after 10% withholding tax, as dividends from 2002 to 2005.

Mr Kobsak said it would be interesting to find out in whose accounts this amount ended up _ in the Shinawatra siblings' or in Ample Rich's.

Ample Rich, despite being a foreign company based in the British Virgin Islands, was owned by Mr Panthongtae and Ms Pinthongta who reside in Thailand, he noted.

''If the dividends were wired to Ample Rich, the Revenue Department must have imposed another 15% withholding tax. But if the amount stayed in the country, who had it or was the money taxable?

''But we still don't know what happened to this amount. The Revenue Department must act on its own rather than be pressured by the assets scrutiny committee,'' he said.

Mr Kobsak added it must be established if Ample Rich paid Mr Thaksin for the 329.2 million Shin Corp shares, saying there was no evidence of payment.

He said if payment was not made, Mr Thaksin should have declared in his asset statement to the anti-graft agency that Ample Rich owed him 329.2 million baht.

The Democrat questioned the source of funds which the siblings used to pay for the Shin Corp shares they bought from Ample Rich. He also demanded an investigation into share transactions between Khunying Potjaman and her brother, Banpot Damapong.