Party of the People presses premier over purported tax-evasion documents
The People's Party (PP) is on a roll with a House of Representatives investigation into Prime Minister Paetongtarn Shinawatra's questionable use of promissory notes (PNs) in a 4.43-billion-baht share acquisition. The main opposition party smells a rat, suspecting this move is nothing more than a sneaky tax-dodging scheme.
Sittiphol Viboonthanakul, as chair of the House committee on economic affairs, is leading the charge, raising three critical questions: If the transaction is legit, whether there's a loophole or desire to bypass tax laws that could impact state revenue, and if relevant agencies have acted with proper transparency within their legal boundaries.
Recently, the PM took heat from the PP during a no-confidence debate over the tax evasion allegations. Despite the criticism, she secured a majority vote to continue her tenure, much to the dismay of the PP.
The PP refuses to back down and has promised to wage an all-out legal war against the PM. In the meantime, Wiroj Lakkhanaadisorn, another PP list-MP, presses for a committee clarification on whether the PM's use of PNs to buy shares from close relatives amounts to staging a legal transaction to skirt gift tax payments.
The Revenue Department representatives were called in for yesterday's House committee meeting to shed light on the matter. Wiroj was there to ensure the department explains whether they relied on Sections 17(7) and 13(7) of the Revenue Code.
The former section empowers the department to review transactions to determine if they're simulated or disguised tax evasion schemes, while the latter allows the director-general to forward disputed tax matters to the Tax Ruling Committee, which issues official interpretations or rulings on how the law applies.
The People's Party's inquiry highlights a potential abuse of non-standard financial instruments for tax avoidance purposes, with underlying concerns about concealed transactions and dubious transactions designed to evade taxes. However, the Revenue Department argues that, as no payments have been made, the transactions are currently within the law. Further investigation and adjudication by the National Anti-Corruption Commission are awaited to shed more light on this controversial affair.
Enrichment Data:The People's Party's House inquiry into Prime Minister Paetongtarn Shinawatra’s use of promissory notes centers on allegations of tax avoidance through non-standard financial instruments, with two key findings:
- Promissory Note Structure: The notes (totaling ~4 billion baht) were issued for off-market share acquisitions from family members, lacking payment timelines, interest rates, or clear transaction terms[1][4]. The opposition argues this structure takes advantage of legal loopholes to defer or avoid capital gains taxes, as taxes apply only upon actual payment (which has not yet occurred)[2][4].
- Revenue Department’s Stance: While the inquiry alleges concealed transactions to shield sellers from tax liability, the Revenue Department maintains the transactions are currently legal since no payments have been made to trigger taxable events[1][4].
The People’s Party has escalated the matter to the National Anti-Corruption Commission (NACC), citing potential double standards and illicit financial practices[4][5]. However, no formal adjudication has been announced as of the latest updates[1][5].
- The People's Party's House inquiry centers on allegations of tax avoidance through non-standard financial instruments, specifically the use of promissory notes by Prime Minister Paetongtarn Shinawatra.
- In the promissory note structure, the notes totaling approximately 4 billion baht were issued for off-market share acquisitions from family members, lacking clear payment timelines, interest rates, or transaction terms.
- The opposition argues that this structure takes advantage of legal loopholes to defer or avoid capital gains taxes, as taxes apply only upon actual payment.
- While the inquiry alleges concealed transactions to shield sellers from tax liability, the Revenue Department maintains that transactions are currently legal since no payments have been made to trigger taxable events.
