There will be no "top down" policy on tax restructuring, said Sommai, but: "I leave the door open for tax officials to propose changes if they spot troubles occurring."

The deputy minister conceded it would take time to restore the image of the Revenue Department after its reputation was damaged by a tax scandal that recently forced the Finance Ministry to sack five senior officials, including the Revenue Department's director-general.

In the course of a morale-boosting visit, he said the controversial tax issue might have been an accident.

"Narrow self-interest might be part of the problem, but I don't think those officials were corrupt," he said.

Newly appointed director general Sanit Rangnoi urged his colleagues to do their duty honestly, in accordance with the wishes of His Majesty the King.

In a related development, Sanit said Bhanapot Damapong, brother of Pojaman Shinawatra, has appealed to the department after being instructed to pay tax amounting to Bt546 million. The department is considering his appeal.

Pojaman gave Shin Corp shares worth Bt738 million to Bhanapot as a gift in November 1997.

The Assets Examination Committee and the National Counter Corruption Commission (NCCC) charged last month that tax officials did not do their duty properly when they failed to collect taxes from the transaction.

Sommai asked tax officials to understand better that "the system" had checks and balances. Although tax officials have a direct duty to collect taxes, other agencies, such as the NCCC, are watching them.

Meanwhile, the Revenue Department has taken tough measures against firms reporting losses but providing luxury cars for their executives, say tax officials.

The department recently imposed stricter rules against firms accused of doctoring their accounts to avoid paying corporate income tax or not fully paying their taxes, said a source.

Under the new rules, firms' expenditures for purchasing cars worth no more than Bt1 million will be tax deductible, while car rentals will be limited to Bt36,000 a month, said the source.

Wichit Chaitrong

 The Nation