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Published on July 4, 2007

Finance Ministry permanent secretary Suparut Kawatkul defended himself yesterday against possible charges of malfeasance from the Assets Examination Committee (AEC), in connection with tax payments related to the Shin Corp deal. He said the tax collections were the responsibility of the Revenue Department.

"I have to look into the legal aspects of the relationship between the Revenue Department and the duties of permanent secretary to Finance, who is the supervisor," he said.

Suparut's implication is that the Finance Ministry permanent secretary would normally delegate the power for tax collection to the Revenue Department.

Suparut, along with six other government officials, will be investigated by the AEC to see whether the Revenue Department violated any laws in not having taxed the family of deposed prime minister Thaksin Shinawatra, following the sale of Shin Corp last year.

Suparut said he would continue to work at the ministry. He is waiting for details of charges the AEC may make against him. He is also willing to give more information to the committee. Suparut is likely to remain in office, at least for the time being, because Finance Minister Chalongphob Sussangkarn said he had no plans to dismiss him, pending legal consultations.

"I have to wait for recommendations from legal officers," Chalongphob said. "But at this point, I will not dismiss or suspend him from office."

Deputy Finance Minister Sommai Phasee echoed Chalongphob's views at a separate meeting with reporters.

"I don't think we have to suspend or dismiss him from office," he said. "The AEC has not filed any charges against Khun Suparut. Besides, officials who were subject to CTX investigations [about procurement of bomb scanners for Suvarnabhumi Airport] have yet to be dismissed from office."

The AEC decided on Monday to investigate the seven state officials for possible malfeasance in connection with the assessment of tax payable by the Shinawatra family over its sale of Shin Corp last year. The others are former Revenue Department director-general Sirote Sawatpanich, department deputy director-general Paitoon Pongkesorn, Bencha Luischaroen, Chamras Yaemsoithong, Moreerat Bunyasiri and Krit Wipulanusat.

However, Sommai said the investigation has not been concluded. The AEC has not filed charges with the Office of the Attorney-General.

The Revenue Department's deputy director-general Paithoon Pongkesorn also claimed yesterday that she had no role in the controversial tax assessment.

She said the Revenue Department sent a responding letter on September 21, 2006, advising the Shinawatra family not to pay tax, but she was appointed as deputy director-general supervising legal affairs in October.

She conceded that she later defended the department's legal opinion, but said that as deputy director-general she could not offer a different interpretation of the Revenue Code to that given by the department's head at the time.

The AEC has decided to look into whether the seven officials were guilty of malfeasance or dereliction of duty in connection with alleged tax evasion by Pinthongta and Panthongtae Shinawatra, the children of the deposed prime minister.

It said that in the committee's view, Article 39 of Revenue Code makes the share sale by Pinthongta and Panthongtae taxable because they bought their Shin Corp shares outside the stock market, as directors of Ample Rich. However, the state officials had ruled that the sale was not taxable.

The Revenue Department has appraised the tax liability of the two children over the Shin Corp share sale at up to Bt12 billion.

Wichit Chaitrong

The Nation