InfoQuest, (April 1, 2019) -- A clear-up of potential industries with alleged involvement in establishing false firms in the name of Thai citizens is well underway, said Vuttikrai Leewiraphan, director general of the Department of Business Development (DBD) of the Ministry of Commerce (MOC) of Thailand. According to Mr. Vuttikrai, this operation is a concerted action by MOC, the Tourism Authority of Thailand (TAT), the Department of Special Investigation (DSI) and the Tourist Police Bureau (TPB), and its task force has collected enough data before making the first move to identify targeted industries in those targeted provinces.
DBD has teamed up with the three authorities in identifying five targeted industries subject to on-site inspection for 2019, including: 1. tourism and allied industries; 2. land trade, property holding and real estate industries; 3. agriculture and allied industries; 4. transportation industry; 5. advertising industry.
Since November 2018, DBD together with its partners has carried out careful scrutiny in relevant regions as planned, and the work has completed in Thailand's four important tourist destinations and also popular foreign investment destinations, namely Phuket Province, Chiang Mai Province, Surat Thani Province (Samui Island) and Krabi Province. In the Phuket Province, the task force inspected 69 firms and issued orders to 91 firms to require their submitting investment documents; in the Chiang Mai Province, the task force inspected 39 firms and issued orders to 52 firms to require their submitting investment documents; in the Surat Thani Province, the task force inspected 44 firms and issued orders to 70 firms to require their submitting investment documents; in the Krabi Province, the task force inspected 30 firms and issued orders to 36 firms to require their submitting investment documents.
Preliminary inspections find no evidence of illegal act of setting up false firms in the name of Thai citizens in Phuket and Chiang Mai provinces, but 24 firms fail to submit relevant investment documents as per the order, Mr. Vuttikrai said. In accordance with the Accounting Act, B.E. 2543 (2000), any person who disobeys the order issued by the Chief Accounts Inspector or of the Accounts Inspector under Section 24, shall be liable to imprisonment for a term not exceeding one month, or to a fine not exceeding two thousand baht, or to both. Meanwhile, the the firm's business license shall bear the remarks that "The firm fails to provide account details, and /or 2017 annual financial report and parties shall be cautious about any legal act with it". As to Surat Thani and Krabi provinces, the task force is in the middle of examining relevant documents and the inspection result will be announced in the near term.
Chonburi Province is also under inspection now. In addition, Trat Province (Chang Island), Bangkok, Prachuap Khiri Khan Province and Phetchaburi Province will be the next targets. Prosecution of any illegal act found during these inspections will be followed through on in an effort to crack down on setting up false firms. Notably, if the task force receives any evidence against an operator who is accused of setting up a false firm, the task force could carry out an inspection in a province that has been inspected before or a province that is not among aforementioned targeted provinces.
"Setting up false firms is a problem of national importance, for it may disrupt national economy and damage national image. If the problem is left unsolved, it can take its toll in Thailand's growth opportunities and revenues. Therefore, DBD warns all parties concerned of a false firm that they would be held liable for what they do. Specifically, the objects include Thai citizens who provide help and support in shares for foreign investors or hold shares on behalf of them in order to circumvent laws, or who violate any laws in operation, foreigners who make Thai citizens hold shares on behalf of them, and all directors," said Mr. Vuttikrai.
In conformity with relevant laws, a person accused of setting up a false firm shall be liable to imprisonment for a term not exceeding three years, or to a fine not exceeding one million baht (one hundred thousand baht at least) or to both, and a further fine shall be not exceeding fifty thousand baht (ten thousand baht at least) each day until he so complies.
Source: InfoQuest, by Phana/Kasamarporn/Ratchada, translated by Xinhua Silk Road
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