Thaksin's children fined and taxed 320 million dollars for Shin Corp sale
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 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 the end of March next year, the official
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.
Normally when individuals sell a company stake, the proceeds are
subject to a 30 percent capital gains tax, but the Shin Corp deal took
advantage of a long-standing provision that scraps the tax if the sale
is conducted through the Stock Exchange of Thailand.
But the revenue department said now some of the Shin Corp
transactions were made outside the stock exchange, thus subjecting
Thaksin's children to pay taxes worth 5.6 billion baht.
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.
But Thaksin's legal adviser Noppadol Pattama disagreed with the
decision and Thaksin's children were ready to fight in court over the
"We closely consulted with the revenue department, which had told
Thaksin's family that they did not have to pay taxes" as long as stock
transactions were made through the stock exchange, Noppadol said.
"We have to prove legally that we have done everything in accordance with Thai laws," he said.
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
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