Korn sees plot in revenue dept's bid for Thaksin's funds

"The law is clear. The department cannot override the Assets Examination Committee order impounding Thaksin's funds. But it has gone ahead and sought the release of that money," Korn said.

The department last week sent a memorandum instructing Siam Commercial Bank to release Bt12 billion to settle tax liabilities owed to the department by Thaksin's estate.

The estate has about Bt30 billion in frozen accounts held under the names of Thaksin's children Panthongtae and Pinthongta.

Korn worries that if the tax payment is made on behalf of the family by the bank, it could lead to the unlocking of all of Thaksin's wealth frozen in this country.

"I suspect there might be a political order to use the tax collection as a pretext to cancel the freeze," he said.

He reminded tax collectors and the bank they must abide by the impound order. The bank said while it was willing to comply with the department, it would proceed with caution because settlement of tax liabilities appeared to be in conflict with the impound order. The bank's directors will discuss the matter. It has asked the Administrative Court to rule on compliance with tax demands in light of the freeze order.

It has approached the National CounterCorruption Commission and the AttorneyGeneral, too.

Until it receives responses it will keep the accounts frozen.

Meanwhile, public prosecutors will today commence a civil action asking the Supreme Court to seize Bt76 billion of Thaksin's assets on the grounds he is "unusually rich".

Deputy AttorneyGeneral Waiyawut Lortrakul said the prosecution would file a 124-page writ arguing for the assets to be seized as state property.

The frozen bank accounts of Thaksin and his family total Bt69 billion. More of his money is yet to be found. Waiyawut said the arguments would use statements from antigraft busters. The prosecution evidence takes up 180 cartons and requires a sixwheel lorry to transport.