When the subject of tax comes up, one thing can always be taken for granted in Thailand: the elite will not lose anything for they are skilled tax minimizers and evaders.
In the Bangkok Post to day there are a couple of stories that can be brought together. First, we have news that “[e]vading taxes worth 10 million baht or more, or fraudulently filing for tax refunds of 2 million baht or more through collusion, shall be considered a money-laundering offence…” under a new law.
The notion that tax evasion is money laundering strikes us as strange, but you get the picture. The tax authorities want to be seen as going after tax evaders, something they have never done much of in the past, except in politicized cases.
So, we should see the Revenue Department go after “politicians” from previous regimes. We should also expect that the Department will examine the taxation records of the unusually wealthy who report huge wealth when they get junta perk positions. We can be pretty certain none of them paid tax on it.
That set us thinking. What about Police General Somyos Pumpanmuang? He is now head of the Thailand Football Association, had long business relationships with mining companies, and at the time of his retirement as Thailand’s top cop, was one of its wealthiest policemen. Somyos was known to have ordered police to support companies he had previously worked with. He was so wealthy that he gave rewards to cops out of his own bag of money. Has he ever been taxed?
We can also wonder whether the 50,000 baht a month that was claimed and then unclaimed as income by metropolitan police chief Pol. Lt. Gen. Sanit Mahathavorn was ever taxed? The lucky Sanit was on the payroll of the giant alcohol and beverage producer Thai Beverage Plc owned by one of Thailand’s wealthiest Sino-Thai tycoons, Charoen Sirivadhanabhakdi. Sanit’s total income was also claimed to be mammoth. Was that taxed?
While on companies and wealth, we wonder how much tax is paid by Charoen and his other fabulously wealthy fellow tycoons? They get great business deals from the corrupt state and from their unusual relationships, but how much do they “give back”? And we don’t mean the piddling corporate social responsibility ruses, we mean real tax.
Readers might recall the contract for the Queen Sirikit National Convention Center which went, without going to a bid or to any significant renegotiation, to N.C.C. Management & Development Co., a company in the gargantuan business empire of Charoen, reputedly worth almost $14 billion. Naturally, he’s also close to the palace.
Which brings us to another Bangkok Post story. Charoen has revealed “plans to develop a new mixed-use project to be called ‘One Bangkok’ on the 104-rai of land that formerly housed Suan Lum Night Bazaar on the corner of Witthayu and Rama IV roads.”
It seems odd that the “development will be joint venture by two companies owned by Mr Charoen, TCC Assets (Thailand) Co and Frasers Centrepoint Limited (FCL).” There must be a tax deal there somewhere.
The mammoth development will be on a lease the “TCC Group secured … from the Crown Property Bureau in 2014.”
Before the site was the Suan Lum Night Bazaar from 2001 to 2011, it was the Armed Forces Academies Preparatory School, established in 1958 “next to Lumphini Park in Bangkok…”. It moved in 2000, and allowed the tacky Night Bazaar to be built. Now, how did that land get back to the CPB? Was the military paying a peppercorn rent? Or was it “returned” to the CPB as so many other properties were. Did the CPB pay any taxes?
These deals can be exceptionally lucrative. Princess Sirindhorn is estimated to personally rake in about $54 million a year from the property she owns around the Siam-Rajaprasong area, and we know she isn’t paying tax.
Tycoons as royalists and royals, along with their helpers in the senior reaches of the civil and military bureaucracies don’t ever seem to be “threatened” with taxation.