Thaksin son testifies in Shin Corp shares tax evasion case

BANGKOK, Jan 10 (TNA) - Panthongtae Shinawatra, son of deposed Thai prime minister Thaksin Shinawatra, on Wednesday appeared before Thailand's Assets Examination Committee (AEC) to clarify the Shin Corp shares transaction in which he was centrally involved, amid tight security.

As expected, a huge crowd -- including a flock of media personnel -- packed the compound of the Office of the Auditor-General of Thailand (OAG) which is also the AEC's office.

Security was strictly imposed with both military and police officers guarding the venue in order to prevent any untoward incidents, as it was hard to identify who among the huge crowd they are, between supporters or opponents of Mr. Thaksin's family or other groups with possible ill-intention.

Arriving at around 11am as scheduled, Mr. Panthongtae, accompanied by his youngest sister Ms. Paethongtharn and a team of lawyers, had to squeeze hard to get through the crowd of the journalists and some of his supporters who showed up to give him moral support.

This was the first time that Mr. Panthongtae appeared before the AEC since the panel ruled that he and another younger sister Pinthongta are among those involved in the tax-free Shin Corp share transaction allegedly in violation of Thai law, in terms of tax evasion.

Two of Mr. Thaksin's children, Mr. Panthongtae and Ms. Pinthongta, and Kanjanapa Honghern, a secretary of Mr. Thaksin's wife Khunying Pojaman, were previously scheduled to appear before the panel in late December, but the three requested for postponement of their appearances to this month.

The AEC subcommittee agreed to postpone Mr. Panthongtae's testimony to January 10, Ms. Pinthongta to January 24 and Ms. Kanjanapa to January 12.

TNA

Quote:SHIN CORP SALE / ASSETS SCRUTINY COMMITTEE VERDICT
Siblings have to pay B5.8bn tax on profit, panel finds

SURASAK GLAHAN

After months of investigation, a probe team looking into the Shin Corp share transfer involving two children of deposed prime minister Thaksin Shinawatra has come up with a decision _ the siblings are liable to personal income tax. A highly-placed source said the probe team, under the Assets Scrutiny Committee (ASC), concluded yesterday that Panthongtae and Pinthongta Shinawatra were liable to personal income tax at the rate of 37% of the 15-billion-baht profit from the purchase of Shin shares, outside the Stock Exchange of Thailand (SET), from their own company Ample Rich in January last year. This means they are liable to pay 5.8 billion baht in tax.

The team, led by former revenue chief Viroj Laohaphan, will announce its conclusion on Monday _ the deadline for tax return filing.

Mr Viroj said his team had produced a 20-page probe report which showed a tax assessment for the siblings' earnings from the deal. The report was to be tabled for final approval by the ASC on Monday.

However, Revenue Department chief Sanit Rangnoi said the agency would have to wait until Monday _ the deadline for taxpayers to file their tax returns.

Mr Sanit took over as revenue chief late last year after the dismissal of his predecessor Sirote Sawasdipanich, who was found guilty of malfeasance for failing to collect a 272-million-baht tax from Bannapot Damapong, stepbrother of Mr Thaksin's wife Khunying Potjaman, in 1997 in another Shin Corp share deal.

''We'll wait until April 2 to see if they'll file their tax returns and what their evidence is,'' Mr Sanit said.

If they fail to make the payment in their filing, the agency will summon them to clarify the missing amounts, and during such time there will be a surcharge of 1.5% per month of the tax payment, added Mr Sanit.

A tax official said the siblings can still submit their tax returns online by midnight of April 2. If that is the case, it will take the agency a few days to process their information. However, the tax law allows the pair to appeal against the Revenue Department's ruling.

The siblings bought 329.2 million Shin shares from their own company Ample Rich in January last year at one baht apiece when the market value was 49.25 baht per share. The Shinawatra family then said the deal was tax- exempt because it was made through the SET.

According to the source, the investigation was sluggish because the siblings kept providing additional information.

According to the source, the conclusion on this tax assessment was made on the price difference of the shares. The focus was on the deal between Ample Rich and the siblings outside the market.

The probe team, citing a Finance Ministry tax ruling, agreed that the income was incurred upon the acquisition of the shares and thus was liable to taxation whether or not the shares were sold later inside or outside the market.

Bangkok Post March 31, 2007
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