It advised tax officials yesterday to accede to demands to meet OAG investigators, an informed source said. However, it has not yet concluded whether the OAG can scrutinise the tax-collection role of the Revenue Department.

A Council of State legal team, chaired by Meechai Ruchupan, met Revenue Department director-general Sirote Swasdipanich and OAG investigators.

The Revenue Department wanted to consult legal experts about whether the OAG had authority under the Constitution to scrutinise tax collection.

The OAG launched an investigation last month by asking five officials to explain the controversial tax-free deal relating to the takeover of Shin Corp by Singapore's Temasek Holdings in January.

The Revenue Department argued the OAG did not have authority. It also said the OAG should wait until March next year when individuals declare personal income tax payments.

However, its current stand apparently contradicts its previous statement that no tax payments were due.

The source said tax officials were advised by the Council of State to meet OAG investigators but they may or may not give any information related to the deal. Five senior officials, including Sirote, are expected to meet investigators this week and next week.

Outsiders have expressed their support for the OAG action.

Research director Somkiat Tangkitvanich said the Revenue Department should come under investigation over its tax-collection practices. In the long run, the Revenue Department should be independent from politicians in order to prevent political intervention, he said.

Caretaker Finance Minister Chaiyot Sasomsub warned: "Final legal power does not rest with the independent organisation (OAG) but with the courts. The Revenue Department does the right thing when it consults the Council of State first."

Wichit Chaitrong

The Nation