Published on January 29, 2006

The Law Society of Thailand and the National Press Council will tomorrow issue a joint statement to inform the public of their concerns over the historic Bt73-billion Shin/Temasek deal. Dej-udom Krairit, president of the Law Society, said the statement would cover the tax issues involved in the mega-deal, in which Prime Minister Thaksin Shinawatra’s immediate family and his in-laws are accused of avoiding a huge tax bill.

The premier’s children and in-laws reportedly paid only Bt25 million in value-added tax on stock brokerage fees, while avoiding paying any income tax on their gains.

Dej-udom said the Revenue Code had apparently been violated. When the PM transferred his shares in Shin Corp to his children and other relatives several years ago, the Revenue Department ruled that the transactions were not taxable as they were gifts and no profits were realised. It then made another ruling last December, which meant that last Monday’s sale of these shares was not taxable either, because the transactions took place on the local bourse.

Dej-udom said the two bodies would also raise the issue of the sale of national assets – satellite slots and radio frequencies – to foreigners. Shares in Shin Satellite and iTV were also sold to the Singapore group.

THE NATION

Post your comment to this story here