April 3rd, 2007, 06:04
Panthongtae, Pinthongta ordered to pay tax of Bt10 billion
Ex-PM's kids tried to avoid duties; bill could double if the decision is challenged
A sub-panel of the Asset Examina-tion Committee has concluded that Panthongtae and Pinthongta Shinawatra owe more than Bt10 billion in tax in connection with the Shin Corp deal.AEC members Sak Korsaengruang, Kaewsan Atibodhi, and Viroj Laohaphan called a press conference last night to reveal the findings of their investigation into the Shin Corp deal. They concluded that the two children of the ousted prime minister Thaksin Shinawatra had attempted to avoid paying tax on the Shin stock transactions.
Viroj said Panthongtae and Pinthongta must pay tax of a combined Bt5.691 billion from the proceeds of Bt16.295 billion they earned on January 23, 2006 after selling their Shin stock holdings to Temasek of Singapore.
On January 20, 2006, the two bought 329.2 million shares of Shin Corp from Ample Rich Investments, incorporated in the British Virgin Islands, for Bt1 apiece, only to sell the stocks to Temasek the following Monday for Bt49.25 apiece. In the process, they made a capital gain of Bt48.25 a share.
The AEC sub-panel ruled that Panthongtae and Pinthongta, who each sold Bt164.6 million worth of stocks, must pay tax of Bt2.845 billion each from the capital gains they realised.
Ample Rich Investments would also have to pay tax from its sale of the Shin Corp stocks at Bt1 apiece to Panthongtae and Pinthongta. As a director of Ample Rich Investments, Panthongtae must pay Bt3.443 billion and Pinthongta Bt1.44 billion on behalf of Ample Rich Investments.
The total amount that Panthongtae and Pinthongta must pay to the Revenue Department is Bt10.575 billion.
Panthongtae and Pinthongta were found to be shareholders of Ample Rich Investments, which was not involved in any business. It simply held about 11 per cent, or 329.2 million shares, of Shin Corp.
Ample Rich was capitalised at US$5, with Panthongtae holding four shares worth $4 and Pinthongta one share worth $1.
Thaksin set up Ample Rich before transferring 10 per cent of the Shin Corp stocks to the paper company. Before entering politics in 2000, he transferred his business interests to his son, Panthongtae.
After the Shinawatra and Damapong families had decided to sell their entire 49-per-cent stake in Shin Corp to Temasek, Panthongtae and Pinthongta were involved in a series of transactions outside and inside the capital market. The zig-zag transactions resulted in the Shinawatras paying no tax at all for the stock sale, igniting a political furore that signalled the beginning of the end for the Thaksin government.
Following the military coup, the AEC was formed to go after the assets of politicians and their associates, including the Shinawatras and Damapongs. Last week Khunying Pojaman Shinawatra and her brother Bhanapot Damapong were sued at the Criminal Court for allegedly having avoided paying tax worth more than Bt543 million.
Viroj said Panthongtae and Pinthongta must pay the tax by April 7 otherwise their assets could be seized and they might have to pay additional fines worth 1.5 per cent of the total amount.
Meanwhile, an official at the Revenue Department said yesterday Panthongtae and Pinthongta had submitted their income tax forms, but they did not include their income from the sale of Shin Corp shares to Ample Rich Investments.
In fact, they had asked for a tax refund, said the official who asked not to be named.
The Revenue Department would soon inform the two to pay the additional tax on their income from the share sales within 30 days, the official said.
If Panthongtae and Pinthongta failed to do so, the department could begin legal proceedings, the official said. Although the two could appeal to the court at any time, the department could seize their assets when the case was finished and the court had ordered them to pay the tax.
According to the Revenue Code, the tax amount would have doubled by that time.
The Shinawatra family lawyer Noppadon Pattama said Panthongtae and Pinthongta did not include the profit they made from the share sale because the sale was conducted abroad. The sale was also done in the stock market and the Revenue Department was still investigating and had not reached a conclusion.
Moreover, the Revenue Department had previously told the two the sale was not subject to taxation of Bt5.8 billion nor any fine as the Assets Examination Committee had claimed, Noppadon said.
A legal team was ready to answer the committee's questions, Noppadon said.
According to the Revenue Code, taxpayers are subject to a fine of 1.5 per cent per month of the tax they had failed to pay in time. As well, if the Revenue Department has told them to pay the tax and then begins legal procedures, the tax amount is doubled.
THE NATION
Ex-PM's kids tried to avoid duties; bill could double if the decision is challenged
A sub-panel of the Asset Examina-tion Committee has concluded that Panthongtae and Pinthongta Shinawatra owe more than Bt10 billion in tax in connection with the Shin Corp deal.AEC members Sak Korsaengruang, Kaewsan Atibodhi, and Viroj Laohaphan called a press conference last night to reveal the findings of their investigation into the Shin Corp deal. They concluded that the two children of the ousted prime minister Thaksin Shinawatra had attempted to avoid paying tax on the Shin stock transactions.
Viroj said Panthongtae and Pinthongta must pay tax of a combined Bt5.691 billion from the proceeds of Bt16.295 billion they earned on January 23, 2006 after selling their Shin stock holdings to Temasek of Singapore.
On January 20, 2006, the two bought 329.2 million shares of Shin Corp from Ample Rich Investments, incorporated in the British Virgin Islands, for Bt1 apiece, only to sell the stocks to Temasek the following Monday for Bt49.25 apiece. In the process, they made a capital gain of Bt48.25 a share.
The AEC sub-panel ruled that Panthongtae and Pinthongta, who each sold Bt164.6 million worth of stocks, must pay tax of Bt2.845 billion each from the capital gains they realised.
Ample Rich Investments would also have to pay tax from its sale of the Shin Corp stocks at Bt1 apiece to Panthongtae and Pinthongta. As a director of Ample Rich Investments, Panthongtae must pay Bt3.443 billion and Pinthongta Bt1.44 billion on behalf of Ample Rich Investments.
The total amount that Panthongtae and Pinthongta must pay to the Revenue Department is Bt10.575 billion.
Panthongtae and Pinthongta were found to be shareholders of Ample Rich Investments, which was not involved in any business. It simply held about 11 per cent, or 329.2 million shares, of Shin Corp.
Ample Rich was capitalised at US$5, with Panthongtae holding four shares worth $4 and Pinthongta one share worth $1.
Thaksin set up Ample Rich before transferring 10 per cent of the Shin Corp stocks to the paper company. Before entering politics in 2000, he transferred his business interests to his son, Panthongtae.
After the Shinawatra and Damapong families had decided to sell their entire 49-per-cent stake in Shin Corp to Temasek, Panthongtae and Pinthongta were involved in a series of transactions outside and inside the capital market. The zig-zag transactions resulted in the Shinawatras paying no tax at all for the stock sale, igniting a political furore that signalled the beginning of the end for the Thaksin government.
Following the military coup, the AEC was formed to go after the assets of politicians and their associates, including the Shinawatras and Damapongs. Last week Khunying Pojaman Shinawatra and her brother Bhanapot Damapong were sued at the Criminal Court for allegedly having avoided paying tax worth more than Bt543 million.
Viroj said Panthongtae and Pinthongta must pay the tax by April 7 otherwise their assets could be seized and they might have to pay additional fines worth 1.5 per cent of the total amount.
Meanwhile, an official at the Revenue Department said yesterday Panthongtae and Pinthongta had submitted their income tax forms, but they did not include their income from the sale of Shin Corp shares to Ample Rich Investments.
In fact, they had asked for a tax refund, said the official who asked not to be named.
The Revenue Department would soon inform the two to pay the additional tax on their income from the share sales within 30 days, the official said.
If Panthongtae and Pinthongta failed to do so, the department could begin legal proceedings, the official said. Although the two could appeal to the court at any time, the department could seize their assets when the case was finished and the court had ordered them to pay the tax.
According to the Revenue Code, the tax amount would have doubled by that time.
The Shinawatra family lawyer Noppadon Pattama said Panthongtae and Pinthongta did not include the profit they made from the share sale because the sale was conducted abroad. The sale was also done in the stock market and the Revenue Department was still investigating and had not reached a conclusion.
Moreover, the Revenue Department had previously told the two the sale was not subject to taxation of Bt5.8 billion nor any fine as the Assets Examination Committee had claimed, Noppadon said.
A legal team was ready to answer the committee's questions, Noppadon said.
According to the Revenue Code, taxpayers are subject to a fine of 1.5 per cent per month of the tax they had failed to pay in time. As well, if the Revenue Department has told them to pay the tax and then begins legal procedures, the tax amount is doubled.
THE NATION