Thaksin faces 16 billion
baht in back taxes
for using offshore tax
shelters and kids as
proxies
By Jon Fernquest
46
billion of Thaksin's 76 billion baht in assets was seized in the recent
Thaksin assets seizure
trial. It looks like the remaining 30 billion will be subject to 16 billion baht in back taxes.
That is the subject of today's article which begins after the vocabulary.
back taxes - taxes
from the past that a person or company did not paid to the government
offshore - outside the country that you live in
taxshelter - a place where people keep their money to avoid paying taxes
proxy – a person or company who acts for another person or company ตัวแทน
seizure - the act of taking control of something, especially by using power or force การบุกเข้ายึด
assets - things owned, especially property and money สินทรัพย์ (See Economist glossary)
offshore - outside the country that you live in
taxshelter - a place where people keep their money to avoid paying taxes
proxy – a person or company who acts for another person or company ตัวแทน
seizure - the act of taking control of something, especially by using power or force การบุกเข้ายึด
assets - things owned, especially property and money สินทรัพย์ (See Economist glossary)
Economics
B16bn in back taxes sought for Ample Rich transactions
Share ownership at heart of case15/03/2010
Wichit Chantanusornsiri
The Revenue Department expects it will be able to claim up to 16 billion baht in back taxes from the Shinawatras in a closely watched case related to the 2006 sale of the family's holdings in Shin Corp to Singapore's Temasek Holdings.
The tax bill comes after the Supreme Court late last month ordered the seizure of 46 billion baht in assets from former premier Thaksin Shinawatra's family on corruption grounds. Immediately after the ruling, the Revenue Department moved to place a hold on the 30 billion baht in assets returned to the Shinawatra family by the court. The case is now pending before the Tax Court.
Ample Rich - the
holding corporation that the Thaksin family used for selling Shin Corp
transaction - a business dealing, the buying and of something การติดต่อทางธุรกิจ
claim, claim money - make a request for money (saying that money should be paid to you for some reason)
holdings - things that you own
bill - a proposed law before there is a vote on turning it into a law
premier - prime minister
corruption - (See Wikipedia on bribery, corporate corruption, and political corruption)
grounds - reasons for what you say or do บนมูลเหตุว่า บนพื้นฐานว่า
ruling - a decision by a court of law คำตัดสิน คำชี้ขาด
pending - waiting to be dealt with, settled or completed ยังค้างอยู่, ซึ่งยังไม่จบสิ้น, อยู่ในระหว่าง
transaction - a business dealing, the buying and of something การติดต่อทางธุรกิจ
claim, claim money - make a request for money (saying that money should be paid to you for some reason)
holdings - things that you own
bill - a proposed law before there is a vote on turning it into a law
premier - prime minister
corruption - (See Wikipedia on bribery, corporate corruption, and political corruption)
grounds - reasons for what you say or do บนมูลเหตุว่า บนพื้นฐานว่า
ruling - a decision by a court of law คำตัดสิน คำชี้ขาด
pending - waiting to be dealt with, settled or completed ยังค้างอยู่, ซึ่งยังไม่จบสิ้น, อยู่ในระหว่าง
In January 2006, the family sold its 49% share in Shin to Temasek for 73.3 billion baht. To facilitate the share sale, Ample Rich, an offshore holding company set up by Thaksin, sold 329.2 million Shin shares to his children Panthongtae and Pinthongta at one baht each on Jan 20. Three days later, the two siblings sold the Shin shares to Temasek through the Stock Exchange of Thailand for 49.25 baht per share.
While share sales through the SET are exempt from capital gains taxes, the Revenue Department has stated that the transaction between Ample Rich and Mr Panthongtae and Ms Pinthongta does represent a taxable transaction.
share
- to have or use something at the same time as someone else ใช้ร่วมกัน
facilitate - help, support, make it easier for project to achieve goals ทำให้ง่าย to make it possible or easier for something to happen ทำให้สะดวกขึ้น
exempt - not have to do something
capital - money invested in a business (See glossary)
capital gains taxes - tax paid on the increase in value of an asset (such as land, house, building, stock shares)
represent - be an example of
X represents Y - X is an example of Y
facilitate - help, support, make it easier for project to achieve goals ทำให้ง่าย to make it possible or easier for something to happen ทำให้สะดวกขึ้น
exempt - not have to do something
capital - money invested in a business (See glossary)
capital gains taxes - tax paid on the increase in value of an asset (such as land, house, building, stock shares)
represent - be an example of
X represents Y - X is an example of Y
Under the tax code, the two can be liable for back taxes of up to 16 billion baht, including penalties and interest charges dating back to the original transaction.
The Revenue Department, in its ruling against the Shinawatra family, cited a 1992 case where a company director receiving stock options at a price below market value is liable for taxes on any gains. In the Shinawatra case, both siblings were also directors of Ample Rich, set up in 1999 in the British Virgin Islands, and thus is subject to tax for the realised gain of 48.25 baht per share from the sale to Temasek.
code
- rules of proper behaviour for a particular job, organisation, etc.
มาตรการ, กฎเกณฑ์, ระเบียบ
tax code - the book with the country's tax laws in it
liable - legally responsible for causing damage or injury มีความรับผิดชอบตามกฎหมาย
penalties - punishment for breaking a law or rule บทลงโทษ
interest - payments made for the use of another's money for a period of time
charges - a payment that has to be made for something เงินที่เรียกเก็บ
cited - mentioned (to support a point you are making or arguing) กล่าวถึง
stock - an amount of something that you keep so that you can use it when you need it ที่เก็บไว้ในสต๊อก
options - the right to buy an asset before a given date (See Economist Glossary on derivatives and Wikipedia) ทางเลือกที่ทำได้
siblings - brothers and sisters
British Virgin Islands - a set of islands in the Caribbean owned by Great Britain that is a famous offshore tax haven (See Wikipedia)
offshore - outside the country that you live in
tax haven, taxshelter - a place where people keep their money to avoid paying taxes (See Wikipedia)
realised - achieved, when what was planned is completed ทำให้เป็นจริง
realised gain - profit, money that you made, money earned
tax code - the book with the country's tax laws in it
liable - legally responsible for causing damage or injury มีความรับผิดชอบตามกฎหมาย
penalties - punishment for breaking a law or rule บทลงโทษ
interest - payments made for the use of another's money for a period of time
charges - a payment that has to be made for something เงินที่เรียกเก็บ
cited - mentioned (to support a point you are making or arguing) กล่าวถึง
stock - an amount of something that you keep so that you can use it when you need it ที่เก็บไว้ในสต๊อก
options - the right to buy an asset before a given date (See Economist Glossary on derivatives and Wikipedia) ทางเลือกที่ทำได้
siblings - brothers and sisters
British Virgin Islands - a set of islands in the Caribbean owned by Great Britain that is a famous offshore tax haven (See Wikipedia)
offshore - outside the country that you live in
tax haven, taxshelter - a place where people keep their money to avoid paying taxes (See Wikipedia)
realised - achieved, when what was planned is completed ทำให้เป็นจริง
realised gain - profit, money that you made, money earned
Tax officials say that while the Shinawatra siblings may argue that Ample Rich is an offshore company and that the share transaction occurred overseas, the Revenue Department's position is that the transaction involved shares of a Thai company and is thus subject to local taxes.
In addition, tax officials say Ample Rich was established solely as a securities holding vehicle rather than as an ongoing business concern.
local
- in or related to the area that you live, or to the particular area
that you are talking about ท้องถิ่น
established - be in a successful position over a long period of time มีตำแหน่งที่มั่นคง
established - has existed for a long time ก่อตั้่ง
ongoing - happening at the present moment; continuing ไม่หยุดยั้ง, ต่อเนื่อง
business concern - a business
established - be in a successful position over a long period of time มีตำแหน่งที่มั่นคง
established - has existed for a long time ก่อตั้่ง
ongoing - happening at the present moment; continuing ไม่หยุดยั้ง, ต่อเนื่อง
business concern - a business
Interestingly, the tax case hinges on the assumption that Mr Panthongtae and Ms Pinthongta were the actual owners of the Shin shares, rather than serving as proxies for their father.
But the Supreme Court, in its ruling, said that the Shin shares - as held through Ample Rich - actually belonged to Thaksin during his time as prime minister and thus represented a personal conflict of interest when he enacted policies benefiting the companies.
X hinges on Y - X
depends on Y (what happens with Y will determine what happens with X)
assumption - something that you consider likely to be true even though you have no proof ข้อสันนิษฐาน
actual - real; existing in fact จริง
proxies - working for or on behalf of other people (helping them do business or own things)
conflict of interest - when your personal interests conflict with your duty to the public in your job (See Wikipedia)
enacted - made a proposal into a law ยื่นร่างกฎหมาย
assumption - something that you consider likely to be true even though you have no proof ข้อสันนิษฐาน
actual - real; existing in fact จริง
proxies - working for or on behalf of other people (helping them do business or own things)
conflict of interest - when your personal interests conflict with your duty to the public in your job (See Wikipedia)
enacted - made a proposal into a law ยื่นร่างกฎหมาย
If the Tax Court follows a similar line of reasoning - that the shares held through Ample Rich belonged to Thaksin all along right up to the purchase by Temasek - the transaction between the holding company and the two Shinawatra children should not be classified as a taxable transaction.
But the Shinawatra family has never made this argument before the Tax Court, with both Mr Panthongtae and Ms Pinthongta insisting that they were the legitimate owners of the Shin shares prior to the sale to Temasek.
Legal observers say this is because admitting that the two children were proxies for their father, while a potentially winning defence in the tax case, would open Thaksin to other criminal charges related to share concealment and false asset declarations while serving as prime minister.
a line of reasoning - an
argument (a series of reasons to make a decision, judgement or
conclusion)
all along - all the time, from the beginning to the end
line - position; a way of dealing with or thinking about something or someone
purchase - buying something
holding company - a company that owns other companies (doesn't do any business itself)
classify - put similar people or things (with same features) into the same group
argument - a reason or reasons why you support or oppose an idea or suggestion เหตุผล
insisting - keeping saying very firmly that something is true, even when other people will not believe you ยืนกราน
legitimate - correct according to the law ที่ถูกต้องตามกฎหมาย reasonable and acceptable ถูกต้องสมควร
potentially - possible in the future ที่อาจเกิดขึ้นได้ may happen, possible เป็นไปได้
defence - something you say to support someone or something that is being criticised or charged การปกป้อง การแก้ต่าง
concealment - hiding ซุก ซ่อน
asset - something owned by a person, company etc., particularly money and property ทรัพย์สิน
all along - all the time, from the beginning to the end
line - position; a way of dealing with or thinking about something or someone
purchase - buying something
holding company - a company that owns other companies (doesn't do any business itself)
classify - put similar people or things (with same features) into the same group
argument - a reason or reasons why you support or oppose an idea or suggestion เหตุผล
insisting - keeping saying very firmly that something is true, even when other people will not believe you ยืนกราน
legitimate - correct according to the law ที่ถูกต้องตามกฎหมาย reasonable and acceptable ถูกต้องสมควร
potentially - possible in the future ที่อาจเกิดขึ้นได้ may happen, possible เป็นไปได้
defence - something you say to support someone or something that is being criticised or charged การปกป้อง การแก้ต่าง
concealment - hiding ซุก ซ่อน
asset - something owned by a person, company etc., particularly money and property ทรัพย์สิน
(Source: B16bn in back taxes sought for Ample Rich transactions, Share ownership at heart of case, 15/03/2010, Wichit Chantanusornsiri, link)
