Transcript of the above video:

As the title of this video suggests, we are discussing scrutiny of Thai Companies associated with landholding for tax reasons. Let me get into what we are talking about here. I thought of making this video after reading a recent article from the Phuket News, that is thephuketnews.com, the article is titled: DSI raids Phuket accountants over Bt440 million in nominee companies. Again, DSI, Department of Special Investigation, that is like the FBI here in Thailand. Quoting directly: "PHUKET: The Department of Special Investigations" (I say that because I don't want people to just view this as something that is going on in Phuket; this pertains to the country as a whole.) The Department of Special Investigation has raided a legal accounting firm based in Chalong that is now under investigation for its involvement in facilitating nearly 70 foreigners illegally operating companies with holdings worth an estimated total of Bt440 million." Quoting further: "Major Suriya told the press that "almost 70 foreigners" were found to be involved in the companies under investigation for using nominee shareholders to illegally allow foreigners to control such companies. He said the practice of using nominee shareholders was illegal under the Foreign Business Act and brought "much economic harm to the country". Again he being DSI Director- General Police Major Suriya Singhakamol. I mean this is the guy that is heading DSI, this is not insignificant. I want to go on and quote him here. "According to the regulations, there will be various taxes and fees on transactions of approximately 10% on each purchase especially in provinces where land is highly valued. Foreigners trade by changing shareholders to avoid paying taxes. Most of the problems that follow are that the land will belong to foreigners he said. So two things going on here from a policy level. One, and I have made a video on this already, there's clearly the issue of foreign land holding. That's the big problem, that's the policy issue here and that is not something to be taken lightly. Thais take this very, very seriously; foreigners are not allowed to own land in Thailand. As I have discussed in other videos, there are small exceptions to that, we have discussed it at length, I am not going to go into that, not even pertinent here. But in the vast majority of the time foreigners are not allowed to own land. More to the point for this video is the issue seems to have been that taxes were being avoided by using corporations so as to allow basically "hey we just change some shareholders around and that way you don't have to go to the Land Office and actually affect a transfer of title which could result in taxes being assessed”. That's the other problem, that's where you get the 44 million Baht mentioned in the title of the article is they are saying "hey, the Thai Government was cut out of that because foreigners are using these structures." 

So the thing to take away from this video as I have discussed in other videos contemporaneously with this one on this subject is Thailand is serious about this and if you just shrug this stuff off as a foreigner and many foreigners do, in fact it's quite frustrating for me when I talk to people and tell them this stuff, they get kind of angry with me and they "oh well, other people do it, and blah blah, it's fine." Well you know what? Other people can drive a car with their feet, it doesn't make it a good idea. It's the same deal with this. You're taking tremendous risks that can result in serious harm to yourself by disregarding the intent and the fact of Thai Law.