Thaksin Sells Shin Corp Stake For Bt80 Billion

[dan10400]

Thaksin isn't making his business tax free, from what I understand, he's simply used his holding company to clear max capital gains on this particular deal. The majority shareholders being his children isn't out of the ordinary either, that's extremely common in Thai and Asian busineses.

As far as the taxability of the whole transaction - as it was said to have been done -

it seems that under the laws he can make a case for it on a legal basis, it is not the

first time, etc. it is hard to argue with anyone minimizing their taxes. But whether

he has any moral standing here, is another matter, as it is clear that political influence

was used in changing laws to his favor in order that the transaction could be done.

That being said, the purpose of the holding company appears to have had a lot

more to do with concealing assets than avoidign taxes. And the fact that the deal for

49.6% where the two families holdings were less than that (because of what was

held in tha offshore entity), seem to indicate significant disclosure violations. Throw

in all the "circumstantial" trading activity in all of the associated stocks (Shin plus

subsidiaries), things are way past fishy. Then you have the whole other issue of

the transaction between Ample and the Taksin "kids" claimed to have been done

through the market but oops - somebody seemed to have forgotten.

Falling back on the "lots of asian familes do this kinda of thing" is a weak excuse.

Maybe those other asian families dot their "i"s and cross their "t"s better.

--dan

[Ricardo]

The point is that wherever we "make" our funds, there are more than plenty of us who are super quick get those funds the heck out of the tax zone. 'Tax me once, but don't think you're gonna tax me year after year' kind of thinking. Sure, it sounds shady, but it's perfectly legal (or at least perfectly commonplace).

Thaksin isn't making his business tax free, from what I understand, he's simply used his holding company to clear max capital gains on this particular deal.

Heng, thanks for your useful input, I think the key words above are "Tax me once" , ie pay tax one time on the profit, in the country where it arises, so that there is some social benefit returned to the country and its people.

My source is "Thaksin , the business of Politics in Thailand", published 2004 :-

pp213 'IPStar also got help on its home patch. In November 2003 the Board of Investment granted investment privileges for IPStar, including an eight-year tax holiday on imported equipment and on profits for overseas revenues. Normally such privileges were granted to attract new investment, not reward an existing company... estimated value of these privileges was 16.4 billion baht over eight years'.

pp218 'In late January, the Board of Investment gave TAA a package of investment privileges. This was unusual. Such promotional grants were usually to induce new investment, but TAA was already committed ... the main part was an eight-year exemption from taxes, including customs dues on equipment imported for establishing ground services'

These are just a couple of examples, of tax-breaks available to Shin Corp, but not available to its competitors in Thailand.

So the value of Shin Corp is inflated by tax-breaks granted, while its main owner-family was in power, and the phrase 'tax me once' in this case means 'Tax me never'.

[Heng]

Falling back on the "lots of asian familes do this kinda of thing" is a weak excuse.

Maybe those other asian families dot their "i"s and cross their "t"s better.

-dan

It's not an excuse by any means.

The point is that wherever we "make" our funds, there are more than plenty of us who are super quick get those funds the heck out of the tax zone. 'Tax me once, but don't think you're gonna tax me year after year' kind of thinking. Sure, it sounds shady, but it's perfectly legal (or at least perfectly commonplace).

Thaksin isn't making his business tax free, from what I understand, he's simply used his holding company to clear max capital gains on this particular deal.

Heng, thanks for your useful input, I think the key words above are "Tax me once" , ie pay tax one time on the profit, in the country where it arises, so that there is some social benefit returned to the country and its people.

No worries, Ricardo. I'm not a defender of the PM, AIS, Shin Corp., etc. by the way, but if we're talking amounts of taxes paid (and resulting in social benefit), I would wager that behind PTT, Shin Corp. and its subsidiaries are up there (at least in the top 20, and surely pay more than any one critique or group of critiques of said PM).

[sriracha john]

Thanong failed to close loopholes: expert

Published on February 01, 2006

Finance Minister Thanong Bidaya and Revenue Department director-general Sirote Swasdipanich have failed to do their duty and close loopholes in the tax code, a tax expert said yesterday.

“The practice of tax exemption on capital gains should be abandoned because it creates injustices in the tax system,” said Medhi Krongkaew, a professor of economics at the National Institute of Development Administration.

Medhi has been calling for an end to tax exemption on capital gains for a decade.

Despite the public outcry over the tax-free sale of Shin Corp, Thanong has defended the exemption granted to the Shinawatras by arguing that taxing capital gains would drive investors from the market.

Medhi, however, said there is no need to offer tax exemptions to support the stock market. Clear rules and transparency will draw investors, he said.

“There are several loopholes in our tax system and the result is a high tax burden on salary earners while the rich enjoy many privileges,” Medhi said. The tax on dividends was just 15 per cent, but salaries can be taxed over 30 per cent, he said.

The Revenue Department has failed to clearly explain this apparent double standard to the public.

A recently revealed classified letter dated November 30, 2000, says taxes should have been collected on two transfers of Shin shares from Thaksin and his wife Pojaman to Thaksin’s brother-in-law Bhanapot Damapong and Thaksin’s younger sister Yingluk.

Permanent secretary for finance Suparut Kawatkul sent the letter to the National Counter Corruption Commission when he was still director-general of the Revenue Department.

The two transactions, involving 26.8 million (for Bhanapot) and 2 million shares (for Yingluk) were conducted outside the stock market and were priced at only Bt10 per share compared to a market price of Bt150 per share.

The transactions were executed in September 2000. Thaksin was elected prime minister the following year. In the letter, Suparut recommended that Bhanapot and Yingluk pay income tax on the profits that had resulted from the discrepancy between the asking price and their market rate.

When asked about this, Sirote Swasdipanich, director-general of the Revenue Department, said: “I cannot comment on specific taxpayers because it is against the law to reveal information about individual taxpayers.”

Asked why the Revenue Department had not collected taxes from Bhanapot and Yingluk, Sirote said that capital gains had not been realised because the two buyers did not resell their shares after buying them from Thaksin and Pojaman. Bhanapot and Yingluk later sold their shares to Temasek Holdings and received capital gains but that sale was tax exempt, Sirote said.

- The Nation

[Maestro]

Thanong failed to close loopholes: expert

Published on February 01, 2006

Finance Minister Thanong Bidaya and Revenue Department director-general Sirote Swasdipanich have failed to do their duty and close loopholes in the tax code, a tax expert said yesterday.

“The practice of tax exemption on capital gains should be abandoned because it creates injustices in the tax system,” said Medhi Krongkaew, a professor of economics at the National Institute of Development Administration.

A change in any law is made by parliament, not by the Finance Minister. And this Khun Medhi calls himself a tax expert…shame on him!

Personally, I am against capital gains tax, in any country. If I work hard, dutifully pay tax on my salary, don’t spend it all but save something and invest it, I resent the idea of having to pay taxes on whatever profit I make on my investment. After all, I am taking a risk; I might just as well be losing money on my investments.

------------------

Maestro

[LaoPo]

Personally, I am against capital gains tax, in any country. If I work hard, dutifully pay tax on my salary, don’t spend it all but save something and invest it, I resent the idea of having to pay taxes on whatever profit I make on my investment. After all, I am taking a risk; I might just as well be losing money on my investments.------------------

Maestro

Agree. In my country there is no capital GAIN tax on shares; there is no tax either if you LOSE your bl__dy money

Everybody is talking about the gain which was made; if the company-shares (involved) would have been sold with losses everybody would have laughed... Buying and selling...it's all in the game.... business game.... and I'm sure there are quite a few gentlemen here on the forum who are doing the same, or maybe did some business one way or another. And everyone wants to make money, otherwise we wouldn't be here

LaoPo

[sriracha john]

SHIN SELL-OFF: Watchdogs to probe deal

Published on February 01, 2006

PCT, Law Society to highlight joint study; sale ‘involves national security’. Two media and legal watchdogs yesterday vowed to publish a white paper on the controversial sale of Shin Corp to Singapore’s main investment arm by Prime Minister Thaksin Shinawatra’s family and his Damapong in-laws.

The white paper would highlight findings from a joint study done by the Press Council of Thailand (PCT) and the Law Society of Thailand.

Press Council chairman Pongsak Payakwichian said the sale of Shin Corp to Temasek Holdings of Singapore triggered concerns about the future of the Thai telecommunication and broadcasting industries while only a few families reaped huge benefits from it, he said.

From an initial observation, the blanket claim for a tax break on the Bt73.3 billion sale of Shin shares was false, he said, adding that any honest interpretation of the law would suggest tax obligations rather than the opposite.

Thaksin’s two children, his younger sister and two Damapong in-laws reported their equity stakes as shares received and held in private possession.

Based on the Revenue Code, shares placed outside the stock market are liable to income tax upon sale. These are not tax-exempted securities as defined by stock-exchange regulations, Pongsak said.

When the Shinawatra and Damapong families handed over Shin shares to their stockbrokers in order to commence the sale transaction in the stock market, they incurred income tax liabilities as they had converted shares into securities for trading in the stock market, he said.

Their tax liabilities should be calculated from the discrepancy between par value or the original price of the shares and the update price quoted in the stock market.

In this case, the taxable earnings would range from Bt32 per share (market price of Bt42 minus par value of Bt10) to Bt41 per share (market price of Bt42 minus Bt1 charged by Ample Rich to Thaksin’s two children).

The Shin shares were eventually sold to Temasek at the premium price of Bt49.25 per share. The differential of Bt7.25 per share between market and premium prices was tax exempted.

A new law to allow 49 per cent of foreign ownership was suspiciously enforced just days before the deal was sealed, he said.

The Nation

[sriracha john]

B20m fine looms over PM's son

POST REPORTERS

Prime Minister Thaksin Shinawatra is blaming his son Panthongthae, who is likely to be fined about 20 million baht, for the Ample Rich controversy, but the Democrats want the Thai Rak Thai leader impeached.

A government source said Mr Thaksin told the cabinet meeting yesterday that Ample Rich Investments Ltd had belonged to Mr Panthongthae since Dec 1, 2000, and the Stock Exchange of Thailand had been aware of this.

''There should not be any problem,'' he told cabinet members, the source said.

Mr Thaksin was referring to the company that reportedly sold 392 million shares of Shin Corp to Mr Panthongthae and his sister Pinthongta at one baht a share on Jan 20.

The two then sold all their holdings in the telecom giant to Singapore's Temasek Holdings on Jan 23 at 49.25 baht a share.

''Everybody can rest happy because your prime minister never ever breaks the law,'' he was quoted as saying during the meeting.

He told cabinet ministers that he had set up Ample Rich in the British Virgin Islands only because he wanted to invest in the US stock market and that the subsequent transfer of Ample Rich to his son did not violate any law.

Suvarn Valaisathien, the spokesman for the Shinawatra and Damapong families, would explain the matter to the press today, Mr Thaksin said.

He refused to say more, remaining tightlipped no matter how hard reporters pushed him for elaboration yesterday.

The Democrats refuse to believe the prime minister's story.

Korn Chatikavanij, deputy secretary-general of the opposition party, said that laying the blame on Mr Panthongthae was Mr Thaksin's last resort. It meant the Securities and Exchange Commission (SEC) would fine the son for failing to immediately inform the agency of his holding in Ample Rich.

Chalee Chantonyingyong, assistant senior secretary-general to the SEC, said Mr Panthongthae never reported the Shin shareholding through Ample Rich and was liable to a daily fine of 10,000 baht.

From the end of November 2000, when Mr Thaksin ended his holding in Ample Rich, until yesterday was a total of 1,946 days and the fine totalled 19.46 million baht, he said.

Media firebrand Sondhi Limthongkul said Mr Thaksin laid the blame on his son to prevent impeachment and the actual legal liability was a two-year jail term.

Democrat leader Abhisit Vejjajiva called for a straightforward investigation by the SEC of the share acquisition and sale by Mr Panthongthae and Miss Pinthongta.

He said the transactions were complicated and they possibly involved taking advantage of insider information, which could make them liable to two years in jail and/or a 200% fine.

Thavorn Senniam, deputy secretary-general of the Democrat party, said Mr Thaksin's past action violated article 209 of the constitution that prohibited a cabinet minister from having a stake in a company or acting as if he was managing a company.

The violation automatically disqualified him from cabinet under article 216 of the constitution. The Democrats would ask the Constitution Court to rule on the issue.

Democrat executive Kobsak Sabhavasu said Mr Thaksin and his son must explain who Mr Panthongthae bought Ample Rich Investments from, how much he paid for it, where the money had come from and where the acquisition happened.

If the acquisition happened offshore, how had he taken the money out of the country and had the Bank of Thailand been aware of the movement.

''It is a convincing thought that actually the company never changed hands. It always belonged to Mr Thaksin and that was concealed,'' Mr Kobsak said. The explanation from the prime minister's side was delayed, possibly pending the fabrication of evidence, he said.

He challenged experts to prove when a written document was actually signed.

''All Mr Thaksin's actions have for a long time deprived him of legitimacy as prime minister."

''It's a shame the Thai people had to have a prime minister who has behaved like this,'' Mr Kobsak said.

[stumonster]

Everybody is talking about the gain which was made; if the company-shares (involved) would have been sold with losses everybody would have laughed... Buying and selling...it's all in the game.... business game....

They indeed took a substantial risk trading those shares at 1 - 10 baht per share

[dr_Pat_Pong]

Here is a nice picture of two kindly gentlemen discussing the plight of the peasants in Thailand at a 5 Star hotel in Bangkok recently.

Thaksin : "How's the fight against poverty going Chavvy"?

Chavalit: "Well, Thaksin, now that you've got all that cash floating around, why don't we start by eradicating poverty in Isaan then we can put together another roadshow and fight the terrorists down south"

Thaksin: Shit,no Chavvy, I need all the money I can get, Sondhi's starting to bark much louder and with this Ample Rich thing I've just handed him a big bone on a platter. Plus the kiddies could be in trouble too as they've been economical with the truth too"

Chavalit: Well, you've got lots of people in high places mate but are they your friends???

Thaksin: I have sooo much money now that "I can buy anyone, anytime,everywhere!

Nice shirt Chavvy"

[sriracha john]

BANGKOK, Jan 31 (TNA) – Government Spokesman Surapong Suebwonglee on Tuesday revealed that children of Prime Minister Thaksin Shinawatra would make a clarification on a trading of Shin Corporation Public Company Limited’s shares with Ample Rich Investment Limited with the Securities Exchange and Commission (SEC) within this week.

“Should they have to be fined on the matter, it is considered usual. No one, even family members of the premier, is above the law,” he said.

The revelation came after SEC asked Pantongtae and Pinthongta, son and daughter of the premier to clarify the trading of Shin Corp’s shares with Ample Rich located in British Virgin Island outside the market.

Dr. Surapong said it is a normal practice that share traders must clarify to SEC when there are doubts about trading so that the regulator could examine whether it proceeded in accordance with rules and regulations.

“As far as I know, persons concerned will definitely clarify within this week. The matter is not related with the premier or the government because it is not done under the government’s jurisdiction. It is a duty of the share traders to explain and SEC to see whether they comply with the rules,” he said.

Asked whether the news would affect the government’s status because it is linked to the premier and his family, he said the reports stemmed from share trading on SET with which people might not be familiar.

To give people proper understanding, he thought, persons, who had experienced in similar deals, and the regulator must make thorough explanation on the matter.

"Should the clarification be clear and in line with the rules, it won’t affect the government. But if not, it will have more or less impact on the government. It is a duty of the premier’s children to clarify to SEC. If they do it in accordance with the rules, they must confirm it. But if not, they may be fined," said the spokesman.

“Everyone is under the same law no matter whether he or she is a member of the premier’s family. If fined, they, even family members of the premier cannot avoid it. No one is above the law,” he added.

[Plus]

Thaksin’s two children, his younger sister and two Damapong in-laws reported their equity stakes as shares received and held in private possession.

Based on the Revenue Code, shares placed outside the stock market are liable to income tax upon sale. These are not tax-exempted securities as defined by stock-exchange regulations, Pongsak said.

That's an interesting turn - taxes should have been paid when the kids turned their shares to stockborkers, not when the stockbrokers sold them to Temasek.

[Jai Dee]

Details of Shin Corp's share sales to be revealed today at a Press Conference

Prime Minister Thaksin Shinawatra told reporters yesterday that there will be a press conference on Shin Corp’s share sale today.

Prime Minister Thaksin Shinawatra said that today, Mr. Suwan Walaisathien (สุวรรณ วลัยเสถียร), advisor of Shin Corp, will give a press conference aimed at explaining the details surrounding the Shin Corp and the Ample Rich Investment today. He refused to give further comments.

Meanwhile, Mr. Suwan sent letters to the mass media yesterday, saying that a press conference on Shin Corp’s takeover deal at the Plaza Athénée Hotel today at 11 p.m. The letter said that the conference will give additional information on the share sales.

Source: Thai National News Bureau Public Relations Department - 01 Febuary 2006

[Heng]

On ITV right now.

Amusing that no one seems to want to bother the Damapong's for any details.

[thedude]

Tax avoidance is not the same as tax evasion. Everybody tries to avoid paying tax using the available rules. I'm sure a US$1.9 billion deal like this would have included extensive tax planning to cover at least the main problem areas. I'm sure no one would want to sell off the family business and pay US$600 million in taxes, it'd be stupid, whether you are in Texas or Thailand. They'd be the laughing stock among the Thai-Chinese community.

Given the legions of lawyers and tax advisors available to the Shinawatras and the Damapongs, it will be unlikely that any serious legal breach will be found. 20 million baht is really a slap on the wrist.

Even if the lynch mob were to somehow make them pay taxes, the tax money would end up in government coffers, which are controlled by the legitimately elected Thaksin government until 2009.

This is really much ado about nothing.

[Plus]

"He may be following international standards [selling Shin Corp on the stock exchange], however, his performance on the deal seems to have had a hidden agenda, especially amending legislation to boost the allowed foreign ownership in telecom business to 49 percent.

However, despite his behavior, I remain confident in him as prime minister, because this deal will give him the ability to help the country progress"

Pansak Puripan, 29, engineer.

From The Nation, paper edition.

>>>>>>

Taksin has open donation box to support him and his family in this difficult times and fight for their reputation against the enemies. Money (in one thousand notes) can be sent to ......

[Erwin1011]

The main question to ask is, what is the family going to do with all the cash? the operation seems have been structured to get(keep) the money in Thailand. Tax-sin is essentially a monopolist operator, who sofar has not shown any decent performance in an open competitive market. That's probably why he sold out in the first place. What monopolies will there be created or are available for Tax-sin to put the money in and go to the next level of exceptional profits, preferably non taxable or exemptable?

[Heng]

I'd imagine they will continue to park most of it as most local families of means do. It's easy ti be flamboyant with other people's/investor's money. Much more prudent to be conservative with your own. It's your family's generational life blood. Those wishing for a "he won the lottery but was bankrupt 3 years later" scenario shouldn't be holding their breath.

[Plus]

Whatever he decides to do, oh sorry, his children decide, people will look for conflicts of interest. If it's the stock exchange - he's a dead man on arrival, if it's in the banks - he can manipulate interests rates, if it's in government bonds, like Vayupak.... Wait, he'll never put HIS money in those.

He can't do anything in Thailand with so much capital to invest, and he can't invest overseas, at least legally.

I expect to simply keep the money in the bank. He has TMB to play with and make it the third or at least forth largest.

[dan10400]

The main question to ask is, what is the family going to do with all the cash? the operation seems have been structured to get(keep) the money in Thailand. Tax-sin is essentially a monopolist operator, who sofar has not shown any decent performance in an open competitive market. That's probably why he sold out in the first place. What monopolies will there be created or are available for Tax-sin to put the money in and go to the next level of exceptional profits, preferably non taxable or exemptable?

well, in the real world, this kind of speculation would not really be necessary.

however, in thailand it is not the case, especially for the PM. the day after the

deal was announced, and they where interviewing the TDRI guy on TV, a large

percentage of SMSs being sent in by the audience came to the conclusion that

Thaksin needed the money to buy up his allocation of utility privatization shares.

--dan

[Jai Dee]

PM Thaksin relieved after the clarification on share deal

Prime Minister Thaksin Shinawatra was in high spirits this morning, following the clarification of the stock transaction between Shin Corporation Public Company Limited and Ample Rich Investment Limited.

The clarification was made by the Spokesman of the Shinawatra and Damapong (ดามาพงษ์) families, Mr. Suvarn Valaisathien (สุวรรณ วลัยเสถียร). Following the explanation, the premier left the Government House on 12:00 hours, and had lunch at Baan Phitsanulok (บ้านพิษณุโลก).

Prime Minister Thaksin expressed relief and declined to give interviews on this matter, but stated that he would like to leave for lunch.

Source: Thai National News Bureau Public Relations Department - 01 Febuary 2006

[britainmal]

Mr. Bpansak Burepan should read my other article responds on this forum.

however, his performance on the deal seems to have had a hidden agenda, especially amending legislation to boost the allowed foreign ownership in telecom business to 49 percent.

He is opening the country to foreign investment, which will make Thailand a rich country. Closing Thailand to foreign investment will make it like China and the Soviet Union in the Communist era. There are many countries that have opened there economy to foreign investment and they have not been invaded like the Thai media portrays negatively of this occuring to Thailand if it opens up its' investment doors.

[Jai Dee]

Ample Rich belongs to PM's children : Suvarn

Ample Rich Investment Ltd that is at the heart of controversy over sell-off of Shin Corp belongs to Prime Minister Thaksin Shinawatra's children, said lawyer Suvarn Valaisathien.

Speaking at a press conference, Suvarn said Thaksin had founded Ample Rich Investment Ltd in 1999 and hold 100 per cent of shares.

A total of 32.9 million stocks of Shin Corp were transferred to Ample Rich as Thaksin wished to trade the stocks in US' Nasdaq stock market. However the plan was suspended because the Nasdaq suffered low point. Therefore the stocks remained in the Ample Rich which is registered in the British Virgin Islands.

In 2000, Thaksin sold the entire stocks in the Ample Rich to his son, Panthongtae and last year, Pinthongtha, a Thaksin's daughter became a 20 per cent share holder of the Ample Rich.

Suvarn who acts as a spokesman for the sell-off of Shin Corp to Temasak said Stock Exchange of Thailand (SET) has been informed of all business between Thaksin and Ample Rich.

However Suvarn declined to answer some reporters' queries about Thaksin's children have to conduct tender offering for owning more than 25 per cent of stocks in Shin Corp. He said he would forward the questions to Shinawatra family and SET.

Source: The Nation -Feb 01 , 2006

[george]

Shin Corp share transfer by Ample Rich justified, says Shin representative

BANGKOK: -- The transfer of Shin Corporation Public Company Limited’s shares to Panthongtae and Pinthongta Shinawatra, son and daughter of Prime Minister Thaksin by Ample Rich Investments Limited has met all legal proceedings with all relevant evidences available for justification by the Securities and Exchange Commission (SEC) and the Revenue Department, according to a spokesman of the Shinwatra and Dhamapong families.

The spokesman, Dr. Suvarn Valaisathien, acting a representative of the two families, said in a press conference here on Wednesday that Mr. Panthongtae and Ms. Pinthongta had already submitted a letter dated January 31, 2006 to the SEC, clarifying events related to trading of all shares held in Shin Corp in order.

He said there was a delay in the clarification because it needed a lot of time to find and gather relevant documents to substantiate the justification as the transactions had existed since six years ago.

He conceded Ample Rich Investments was set up on March 12, 1999 by Mr. Thaksin to take the transfer of 32.93 million shares of Shin Corp at a par of 10 baht as part of a plan to list the shares on the Nasdag Stock Market in the United States.

The share par value was later split to one baht, resulting in the number of shares transferred increasing ten times to 329.2 million.

However, since the Nasdag index slumped in 2000, Shin Corp gave up its plan to list the shares on the market.

So, the number of the shares remains with Ample Rich at present.

He said on December 1, 2000, Mr. Thaksin decided to sell all shares held in Ample Rich to his son Panthongtae before the general election was held in January 2001.

The SEC sought a clarification on the matter from Ample Rich on July 11, 2001 and received the confirmation on July 25.

On May 15, 2005, the company informed the SEC of a shareholding structural change with Mr. Panthongtae holding 80 per cent and Ms. Pinthongta 20 per cent.

On Jan 20, 2006 Ample Rich sold the 329.2 million shares to both persons equally, or 164.6 million each, outside the market since it had no intention to keep cash from the sale of Shin Corp shares in a foreign country.

Since the purchasers and sellers are the same persons, the transaction of the share sale to new shareholders on January 23 should not be considered the insider trading.

Dr. Suvarn said both persons admitted they mistakenly marked at Form No. 246-2 on January 20 that the shares were sold through the Stock Exchange of Thailand (SET). The correction was made on January 30.

On the tax issue, he said, Mr. Panthongtae and Ms. Pinthongta made an enquiries with the Revenue Department and received a written confirmation that the sale of Shin Corp shares by Ample Rich to both persons at a par value of one baht is not subject to taxation because it was done without any profits.

Mr. Panthongtae and Ms. Pinthongta had informed the SEC of all transactions on Ample Rich and believed the SEC had all relevant documents on the matter.

In the past 22 years, he said, the Shin Corp group had paid around 50 billion baht of taxes to the state and the Shinawatra and Dhamanpong families around 3 billion baht.

Dr. Suvarn said Mr. Panthongtae and Ms. Pinthongta needed not make a tender offer of Shin Corp shares before selling them to Temasek Holdings of Singapore because both held the shares in an amount of not exceeding 25 per cent although they took the transfer of 329.2 million shares at a par value of one baht from Ample Rich

Upon receiving the shares from Ample Rich, Mr. Panthongtae holds a 15.49 per cent and Ms Pinthongta 20.15 per cent in Shin Corp.

During the press conference, Dr. Suvarn had apparently stepped aside to answer reporters’ questions about a morality of the deal, saying only that he had a duty to clarify the deal and affirmed it was done in accordance with all legal proceedings.

Asked why did Ample Rich not sell shares to Temasek Holdings directly, he said the Shinawatra family wanted the funds to flow in Thailand for the benefit of the economy.

It should be seen that the baht had strengthened to 39 to the US dollar from 41, which could result in the improvement in the trade and current account balances, he said.

--TNA 2006-02-01

[Butterfly]

Since when a offshore company can be listed on the NASDAQ ?

This story doesn't have legs. Who do you think he is joking here ?

[Heng]

In the past 22 years, he said, the Shin Corp group had paid around 50 billion baht of taxes to the state and the Shinawatra and Dhamanpong families around 3 billion baht.

Bravo!

[dan10400]

In the past 22 years, he said, the Shin Corp group had paid around 50 billion baht of taxes to the state and the Shinawatra and Dhamanpong families around 3 billion baht.

Bravo!

and so what is the value of all the tax concessions granted to Shin and its

subsidiaries over the last 5 years? just because "some" tax was paid over

the last 22 years (no clarification here isn't really of use either), doesn't

relinquish Taksin and his family of at least following the rules and not

have the government scrambling around to find loopholes that justify

this transaction (instead of properly investigating it).

nice little red herring, but not biting.

--dan

[ratcatcher]

In the past 22 years, he said, the Shin Corp group had paid around 50 billion baht of taxes to the state and the Shinawatra and Dhamanpong families around 3 billion baht.

Bravo!

and so what is the value of all the tax concessions granted to Shin and its

subsidiaries over the last 5 years? just because "some" tax was paid over

the last 22 years (no clarification here isn't really of use either), doesn't

relinquish Taksin and his family of at least following the rules and not

have the government scrambling around to find loopholes that justify

this transaction (instead of properly investigating it).

nice little red herring, but not biting.

--dan

QUOTE OF THE YEAR! " ''Everybody can rest happy because your prime minister never ever breaks the law.''

Thaksin Shinawatra at a meeting held on Feb 1st at Plaza Athene.

Edited February 1, 2006 by ratcatcher

[sriracha john]

Bangkok Post

- Thai Prime Minister Thaksin Shinawatra on Wednesday attempted to clarify a shady offshore transaction that preceded his family's 1.9 billion dollar stock sale last week, with his lawyer claiming the deal was done to benefit Thailand.

Suvarn Valaisathien, Thaksin's lawyer, told a press conference that Ample Rich Investment, a company registered in the British Virgin Islands tax haven, did not belong to the prime minister when it sold its 11.9 per cent stake in Shin Corp to Thaksin's son and daughter, Panthongthae and Pinthongta, on January 20, 2006.

On January 23 Panthongthae and Pinthongta resold the 329 million shares in Shin Corp they had bought from Ample Rich at one baht (2 cents) a share to Singapore's Temasek for 49.25 baht (1.30 dollars) per share.

The transaction, which was tax free since capital gains on the stock exchange are not taxed in Thailand, has aroused suspicion that Ample Rich was still owned by Thaksin when he sold it to his offspring and accusations of "insider trading" against Thaksin's children.

Suvarn provided legal evidence to prove that Ample Rich had been sold to Panthongthae in late 2000 and already belonged to Thaksin's son and daughter before they shifted the company's shares back to Thailand on January 20, days before the prime minister's clan got rid of their 49 per cent stake in Shin Corp, founded by Thaksin two decades ago.

"The main point is that the family (wanted) to receive all the money in Thailand because we are Thai people, so whenever we sell Thai companies we want to receive the proceeds in Thailand," Suvarn explained to the press.

He was less clear on whether or not Panthongthae and Pinthongta were aware that they were going to turn around and sell their 329 million Shin Corp shares from Ample Rich to Temasek three days later, an admission that might lead to charges of insider trading on the Stock Exchange of Thailand (SET).

Suvarn insisted that Panthongthae and Pinthongta had been planning to bring the Ample Rich shares back to Thailand since mid-2005, when they inquired about tax ramifications for the deal from the Revenue Department.

"The plan had been there since 2005, it just didn't happen until January 20," said Suvarn.

The lawyer described Panthongthae and Pinthongta as "good people," ( a really BIG ) who had helped to strengthen the Thai baht by bringing so much foreign exchange into the country to pay for the Shin Corp buyout.

Suvarn added that the family was planning to donate 1 billion baht (25.6 million dollars) to charity.

That "Research on Poverty Gala Ball" at the Grand Hyatt Erawan is going to be very well funded!

It has been estimated that if Thaksin's family had not exploited legal loopholes in Thailand it would have been forced to pay more than 26 billion baht (666.7 million dollars) in taxes on its 73.3 billion baht (1.9 billion dollar) sell off of Shin Corp.

The Stock Exchange Commission (SEC) has requested that Panthongthae and Pinthongta explain the transaction to the authority.

Edited February 1, 2006 by sriracha john

[Ricardo]

In the past 22 years, he said, the Shin Corp group had paid around 50 billion baht of taxes to the state and the Shinawatra and Dhamanpong families around 3 billion baht.

Bravo!

and so what is the value of all the tax concessions granted to Shin and its

subsidiaries over the last 5 years? just because "some" tax was paid over

the last 22 years (no clarification here isn't really of use either), doesn't

relinquish Taksin and his family of at least following the rules and not

have the government scrambling around to find loopholes that justify

this transaction (instead of properly investigating it).

nice little red herring, but not biting.

--dan

So Shin Corp paid an average of 2.3 billion baht per-annum in tax, over 20 years.

But then save an estimated 26 billion baht, on the sale of the company ?

Looks like a pretty good pay-off to me !

And how come everyone claims that a stronger baht will be good for Thai business ? It will surely hit the tourist & export trades, no ?