Thailand's Finance Ministry Dismisses Senior Officials over Tax Scandal

Strategic Insights -

Thailand's Finance Ministry has made a high-profile move to address a long-standing tax scandal involving senior officials and a relative of former Prime Minister Thaksin Shinawatra. The ministry's civil servant sub-committee resolved to dismiss Revenue Department director-general Siroj Sawasdipong and four other senior officials for failing to tax Bannapot Damapong, adoptive elder brother of Thaksin's wife Pojaman, over a share deal. The case dates back to 1997, when Khunying Pojaman transferred 4.5 million shares of Shin Corp to her brother through a family maid, claiming they were a wedding gift. However, the National Counter Corruption Commission (NCCC) ruled against Bannapot, arguing that the transaction was liable to taxation. The sub-committee's decision to dismiss the officials was based on their dereliction of duty, which did not warrant leniency under the Civil Code Provisions 154 and 157.

Key Takeaways:

  • The Thai Finance Ministry's civil servant sub-committee dismissed Revenue Department director-general Siroj Sawasdipong and four other senior officials for failing to tax Bannapot Damapong, elder brother of former Prime Minister Thaksin Shinawatra's wife Pojaman.
  • The scandal dates back to 1997, when Khunying Pojaman transferred 4.5 million shares of Shin Corp to her brother through a family maid, claiming they were a wedding gift.
  • The National Counter Corruption Commission (NCCC) had previously ruled against Bannapot, arguing that the transaction was liable to taxation.
  • The sub-committee's decision to dismiss the officials was based on their dereliction of duty, which did not warrant leniency under the Civil Code Provisions 154 and 157.
  • The officials have the opportunity to appeal the decision to the Office of the Civil Service Commission, which will make the ultimate decision.

Statistics:

  • 4.5 million shares of Shin Corp were transferred to Bannapot Damapong in 1997.
  • The transaction was worth approximately Bt738 million (US$20.4 million).
  • The National Counter Corruption Commission (NCCC) had previously dismissed Bannapot's claims, arguing that he registered his marriage in January 1996, long before the share transfer.

Sources:

  • (TNA-OANA) 26-12 1533