The Assets Examination Committee (AEC) ruled yesterday that Bhanapot Damapong, a brother-in-law of deposed prime minister Thaksin Shinawatra, has to pay Bt546 million in additional tax for the shares valued at Bt738 million he bought in 1997 from a domestic helper of Thaksin's family.

Yesterday's meeting of the AEC resolved to ask the Revenue Department in writing to demand the additional tax, said Sak Korsaengruang, the panel's spokesman.

The committee also agreed that legal action should be taken against Bhanapot, brother of Khunying Pojaman Shinawatra, for violating the Code of Revenue in failing to pay the large amount of tax, according to the spokesman.

A source in the AEC said Khunying Pojaman and the domestic helper, Duangta Wongphakdi, could also face legal action for colluding in the alleged tax evasion.

Sak and Viroj Laohaphan, who heads the AEC's subcommittee investigating the Shin Corp share sale, yesterday called a press conference after the committee's meeting, which lasted about four hours.

In 1997 Bhanapot bought 4.5 million Shin Corp shares from Duangta for Bt738 million through the stock exchange. Pojaman paid the money as well as the one per cent transaction fee on his behalf.

However, it was found that the cheque paid to Duangta was later deposited in a new bank account belonging to Pojaman, Viroj said yesterday.

Viroj also noted that Bhanapot once told the Constitution Court the shares were a gift from Pojaman. However, Viroj said that under Article 39 of the Code of Revenue, Bhanapot had to pay tax for the shares.

Viroj, a former director-general of the Revenue Department, said Bhanapot had consulted with the department, who told him he was exempted from tax because the share transfer was a gift.

However, the AEC concluded yesterday the value of the shares was too high to be considered a "gift" and that judging from her history, it was uncharacteristic for Pojaman to offer such a large amount as a present to her siblings, according to Viroj.

"The AEC will send the Revenue Department a letter asking it to demand additional tax within 30 days after the letter is received," he said.

Viroj said Bhanapot was liable to pay Bt273.06 million in unpaid tax, plus a fine of the same amount, and therefore had to pay a total of Bt546.12 million.

"If the Revenue Department is unable to collect the tax, they must explain why, or they will be deemed negligent under the Criminal Code. And if Bhanapot fails to pay tax, his assets could be seized," Viroj said.

He added however that Bhanapot could fight the case in a tax court.

Sak said yesterday that the AEC would set up a new subcommittee to examine and verify additional relevant documents in the case.

Meanwhile, the National Counter Corruption Commission (NCCC) will decide on November 30 whether to indict Revenue Department director-general Sirote Swasdipanich and six other officials for the agency's failure to collect tax from Bhanapot, NCCC chairman Panthep Klanarongran said yesterday.

 However, a source from the AEC yesterday said Sirote was likely to escape the hook as he did not sign the department's letter informing Bhanapot that he was not liable to pay tax in the share transfer.

Viroj yesterday said much progress had been made in another case regarding alleged tax evasion by Thaksin's children, Panthongtae and Pinthongta, in their purchase of 329 million Shin Corp shares from Ample Rich Investment Ltd, the company they owned. The two later sold the shares to Singapore's Temasek Holding.

Viroj said that people were supplying the AEC with information regarding the case.

On Friday, the AEC said there was no evidence to prove that taxes were paid on the dividends earned by Ample Rich from Shin Corp.

Nerisa Nerykhiew,

Budsarakham Sinlapalavan

The Nation