The letter comes amid growing pressure on the government to find ways to chase after taxes before the statute of limitation lapses.
The letter specifies how much tax Thaksin, who lives in self-imposed exile, owes the state, said the source, adding the department understands his team of lawyers will formally acknowledge the tax collection demand at the department today (Mar 27).
The Office of the Auditor-General (OAG) earlier recommended it exercise Section 61. This allows officials to collect tax from anyone whose name appears in “any important document” showing they have sold assets.
Thaksin’s children, Mr Panthongtae and Ms Pinthongta, purchased 329 million Shin Corp shares at a price of one baht each from Ample Rich, an offshore holding company controlled by the Shinawatra family. The pair later sold the Shin shares in their name to Temasek through the Stock Exchange of Thailand for B49.25 each, reaping capital gains subject to tax.
On Feb 26, 2010, the Supreme Court ordered the seizure of Thaksin’s assets on its ruling that the siblings were mere proxies holding the shares for him. In December that year, the Central Tax Court ordered the withdrawal of the tax appraisals of Mr Panthongtae and Ms Pinthongta, citing the Supreme Court’s ruling that the siblings were Thaksin’s proxies.
The OAG advised the Revenue Department not to appeal against the Central Tax Court’s order. On March 17, 2011, the Revenue Department decided not to appeal, a decision that two months later was acknowledged by the Finance Ministry. However, the ministry directed the department to the “bona fide share owner” to properly appraise the tax owed from the sale.
The source said yesterday (Mar 26) that tax collection demands have been issued to everyone who owes state taxes. Thaksin reserves the right to appeal the demand within 30 days of receiving the notification. If the appeal is lodged, the department will form a panel to consider it. Should the panel throw out the appeal, Thaksin can take the case to the Central Tax Court.
The cabinet on March 14 resolved to issue the tax notification to Thaksin following talks with various agencies, including the Finance Ministry, the OAG, and the National Anti-Corruption Commission.
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