Transcript of the above video: 

As the title of this video suggests, we are discussing Thai Property Holding Companies and one of the more discreet reasons for the recent crackdown on anti-nominee, the Crackdown against nominees being utilized so foreigners can effectively do things like own land and maintain certain types of businesses notwithstanding restrictions on that type of business and business activity to foreigners in Thailand. But what I am trying to get at here is there is actually an even deeper reason than the sort of ostensible reasons and transfer taxes and fees seems to be at the heart of that analysis.

I thought of making this video after reading a recent article from the Bangkok Post, that is bangkokpost.com, the article is titled: Nominee structures thrust into the spotlight. Quoting directly: "What does Thailand stand to lose? According to a property source who requested anonymity, a common method involves setting up a company in which Thai nominees hold 51% of the shares, while the actual foreign buyer holds the remaining 49%. When the property changes hands, ownership of the real estate itself is not transferred. Instead, the company simply changes the name of the 49% foreign shareholder from the previous owner to the new one. Quote: "This process costs only 1,000-2,000 baht in registration fees, compared with normal property transfers that require a 2% transfer fee based on the property value, as well as income tax." That is a major data point for those who are following along at home if you will regarding this push against the nominee stuff. Because at the end of the day, by putting property inside of one of these companies, one, if it is being utilized so that a foreigner can effectively own the land - Thailand has an issue with that just on apology basis - but on top of that, if say that person then wanted to transfer their interest to somebody else and move away, they simply transfer their 49% shares, that's done down at Department of Business Development, 1 to 2,000 baht in fees to be able to do that, as opposed to 2% of the underlying property value accruing to the state. 

Look, at the end of the day, Revenue generation is a function of law enforcement, and tax generation is kind of the stock and trade of Government; that's what they do is tax. I think that this is a major reason why we are seeing the crackdown and the passion if you will associated with this crackdown, because again, as I have discussed in other videos, it has risen to the level of national security for certain reasons involving certain weapons stockpiles that have been discovered, but on top of that, look there's even more sort of mundane pragmatic reasons and that is the state wants to be sure that they are garnering their tax money. And I think that we're probably going to see these structures continue to be targeted as long as certain folks in the government think that there may be some further revenue to be had or being withheld as a result of the existence of these structures. That said, quoting further: "As a result, the government loses significant revenue from transfer fees and taxes that would normally be collected through direct property transactions." Again, it sort of just reiterates what I just said. 

One of the reasons for the, again the fervour behind going after these type of structures in my opinion, not least to which is the issue involving foreign ownership of Thai land which is something that is a hot button issue politically to Thais; let's just put it that way. But on top of that, it's the fact that Revenue Officers within the Government are sitting there saying, "hey, we're losing out on a certain amount of tax we could otherwise be getting if this property was being transferred in sort of a natural organic manner, and for that reason they're starting to crack down on these sort of nominee structures. 

Exactly what this means and how this plays out remains to be seen, but we will certainly be keeping folks updated on this channel as the situation evolves.