The Assets Examina-tion Committee is considering freezing the assets of politicians and their associates who are being investigated for alleged irregularities.

A leading source at the AEC said some members were likely to propose the idea at a full meeting today.

They will ask that the Anti-Money Laundering Office freeze the assets of all people involved in the Shin Corp share sale and the controversial Ratchadapisek land purchase, the source said.

The issue was discussed at the AEC meeting last Wednesday. Some panel members suggested the investigation had gathered sufficient evidence to warrant asset freezing which, they argued, was necessary to prevent funds being siphoned off.

Many AEC members had agreed to the idea but it was likely others would vote against it if a resolution was needed, the source said.

The AEC had found that Shin Corp shares were sold to parties whose stakes were less than 25 per cent so that they could avoid making a tender offer or paying tax.

Authorities can prosecute offenders who break any of three laws.

The anti-corruption law bans politicians from having conflicts of interest and concealing assets under the names of relatives, workers or nominees.

Stock-market law requires traders to report any share transfers that are above 5 per cent and requires shareholders to hold tender offers if their stake exceeds 25 per cent.

Income-tax law imposes tax on income from share transfers except for share sales by an individual.

An AEC subcommittee chaired by Viroj Laohapan will meet to decide how much income tax Ample Rich Investment has to pay for dividends of Bt1.77 billion it received from holding shares in Shin Corp since 2003.

Thailand Securities Depository Co had earlier deducted 10 per cent in tax from the dividends but the AEC believed tax should be collected at the rate of 30 per cent.

Viroj's panel last week agreed in principle that Ample Rich was not exempt from paying tax.

"Although Ample Rich was registered abroad, it has to pay tax because it has Thai directors and does not carry out any other businesses. It received income only from Thailand," a source said.

The AEC is also probing the telecom excise tax that was introduced by Thaksin Shinawatra's government but has since been revoked.

Chairman Nam Yimyaem said the AEC would question witnesses about the cabinet meeting that issued the resolution on excise tax.  "If no one made any objection, all Thaksin cabinet members who issued the resolution would be held responsible for the policy," he said.

Bancha Khaengkhan

The Nation