In a significant crackdown on tax evasion, a Singaporean businessman was apprehended at Suvarnabhumi International Airport while attempting to flee back to Singapore. The individual, identified as 71-year-old Liu David, is accused of orchestrating a scheme that resulted in a staggering loss of over 5 million baht (approximately SGD 197,184) in value-added tax (VAT) to the Thai government.
Details of the Arrest
The operation leading to Liu’s arrest was spearheaded by Police Major General Thathapoom Charupraphan, who coordinated with Police Colonel Naruephon Karuna and Police Captain Noppakhun Thatnamalai. Liu was detained at the airport under a warrant issued by the Phra Khanong Criminal Court on May 6, following a complaint lodged by the Revenue Department against his company, iSentia Monitoring Services (Thailand) Ltd. Liu served as an authorized director of the company from July 1 to October 30, 2015.
The Revenue Department’s investigation revealed that the company had reported zero sales, purchases, and net tax obligations, despite generating substantial business revenue. This discrepancy raised red flags and prompted further scrutiny into the company’s VAT filings, specifically the Phor.Por.30 forms.
Legal Proceedings and Implications
The investigation uncovered that the estimated damages from the fraudulent activities amounted to approximately 5,239,319 baht. Subsequent summonses for the company’s directors to respond to the charges were ignored, leading to suspicions of deliberate evasion. Consequently, the Phra Khanong Criminal Court issued an arrest warrant for Liu and other responsible directors.
During his interrogation, Liu denied the allegations but acknowledged his previous role as an authorized director at iSentia. Following the questioning, he was transferred to the Police Economic Crime Division for further legal action.
Government’s Stance on Tax Evasion
In light of this incident, the Thai government is reinforcing its commitment to combat tax evasion. Deputy Finance Minister Paopoom Rojanasakul emphasized the need for a stringent zero-tolerance policy towards excise tax violations. The government is particularly focused on curbing the smuggling of untaxed goods, especially those transported across borders or sold through online platforms.
This case serves as a stark reminder of the ongoing efforts by Thai authorities to uphold tax compliance and ensure that businesses operate within the legal framework. As the government intensifies its crackdown on tax fraud, it is crucial for companies to maintain transparent and accurate financial records to avoid severe legal repercussions.
In conclusion, the arrest of Liu David highlights the serious consequences of tax evasion in Thailand. As authorities continue to pursue those who exploit the system, businesses must remain vigilant and compliant to foster a fair economic environment.
Image Source: Matichon