The country's top revenue official is being replaced because of alleged negligence in failing to impose taxes on the Shinawatra family.

Finance Minister MR Pridiyathorn Devakula will replace Revenue Department director-general Sirote Swasdipanich following his indictment by the National Counter Corruption Commission (NCCC).

The action will be taken as soon as the ministry is notified by the NCCC of the charges, Pridiyathorn said yesterday. Earlier, Deputy Finance Minister Sommai Phasee said Sirote was no longer able to perform his duties following the NCCC charges.

Pridiyathorn declined to reveal a successor but said permanent secretary Suparut Kawatkul was considering names. Sommai said a new boss must be able to efficiently collect tax and boost the department's morale.

The charges allege that as Revenue deputy director-general Sirote failed to collect tax owed by Bhanapot Damapong for the receipt of Shinawatra Computer and Communications shares from his sister Pojaman Shinawatra. The company later became Shin Corp.

Bhanapot received 4.5 million shares as a "gift". They were worth Bt738 million. Bhanapot is the brother-in-law of former prime minister Thaksin Shinawatra.

State Enterprise Policy Office chief Vichai Jungrakkiat is also being removed. Vichai, a senior tax official at the time, was similarly charged.

The ministry is in turmoil after investigations into its actions over tax and concessions during the Thaksin administration. The NCCC, Auditor General and the Assets Examination Committee (AEC) are all conducting probes.

The NCCC said on December 7 it would indict Sirote and four other senior officials on criminal and disciplinary charges.

The decision followed an AEC ruling last month that Bhanapot had to pay Bt546 million in tax for shares acquired in 1997 from a domestic employee of the Shinawatras.

NCCC chairman Panthep Klanarongran said the agency believed Sirote and the four others were negligent in failing to impose tax on the deal.

The others charged are department legal officers Suchinda Saengchompu, Morirat Bunyasiri and Kulluedee Saengsayan.

The charges have been brought under Articles 154 and 157 of the Criminal Code. They also face Civil Service Directive Act charges for alleged disciplinary offences.

The NCCC will submit its inquiry to State prosecutors within a week.

NCCC member Klanarong Chantik said the investigation stemmed from a probe into an assets declaration by then premier Thaksin and an indictment against him for assets concealment. The Constitution Court acquitted him of those charges in August 2001.

The Revenue Department testified in support of Thaksin saying Bhanapot was exempt from tax because he received the shares as a wedding gift.

Wichit Chaitrong

The Nation