He missed, hitting instead two German tourists passing by on Soi Sansabai in Patong.
Joseph Woerner and Johann Baschegger were hit, one in the arm and the other in the shoulder. They were taken to Patong hospital for treatment.
An hour later police arrested the tattoo parlour owner, John Cohen, believed to have fired the gun. A Ruger .45 semiautomatic pistol was seized.
They also arrested another Australian, Adam Lewis, though it not clear on what charge.
The two told police that the Dane had borrowed B380,000 from them. He had not paid any back and, with interest, he now owed them B1 million.
The Danish debtor has not been found, and is believed to be in hiding.
The two Australians are in custody and undergoing further questioning. Cohen was initially charged with attempted murder and with having a gun in a public place.
In addition to owning the tattoo parlour, Mr Cohen is understood to own Johnny’s Bar in Patong and condos south of Patong.