Panama Papers take second bite out of Thai elite

The move is expected to trigger further investigation into possible money laundering activities and tax evasion in various countries.
President Vladimir Putin had already been placed in the spotlight after a close associate of the Russian leader was named in the initial leak. He will likely be joined by politicians from several other countries after probes into the latest data dump by the ICIJ.
The database also contains a total 1,413 names with Thai addresses, most belonging to wealthy businesspeople, celebrities and former politicians or their dependants.
The list also includes a slew of expatriates resident in Thailand, especially in major resort provinces such as Phuket.
The Anti-Money Laundering Organisation (AMLO), Revenue Department, and National Anti-Corruption Commission (NACC) are responsible for leading the response. AMLO previously revealed it is probing 16 Thai names in the initial Panama Papers leak, including former politicians and businessmen, for possible violations of the anti-money laundering law.
However, no guilt has been established at this stage.
Money laundering and other criminal activities aside, setting up offshore shell companies is a common practice among wealthy individuals and companies as a means to avoid or minimise their tax burden.
Most individuals who qualify as “super-rich” are keen to hide their assets, and the services of offshore legal and banking specialists such as Mossack Fonseca serve their objectives.
By exposing the huge scale of tax evasion worldwide, the whistle-blowers hope their efforts will also help create an agenda for governments around the globe, especially those in the developed world, to seek new measures to plug this gaping loophole.
High-net-worth individuals generally face a correspondingly high burden of tax on their income and other assets, and this has naturally led to widespread onshore tax evasion.
More startling are the cases of corrupt politicians who resort to setting up offshore shell companies to manage their ill-gotten wealth. This practice is also favoured by criminals seeking to launder money from illegal activities abroad, including funds from narcotics and human trafficking.
In addition, most multinational companies, especially those among the world’s largest corporations, have long benefited from the legal loopholes, allowing them to book billions of dollars in profits abroad to avoid paying hefty taxes back home.
In the case of Thailand, the Revenue Department will have to step up its monitoring on the tax records of individuals and companies named in the Panama Papers.
Dubbed the world’s biggest-ever leak of its kind, the database provided by the ICIJ is sending shock waves around the world for the privileged elite and companies.
In Thailand, those affected are mainly well-known millionaires and billionaires as well as familiar companies from virtually all major categories of business and industry.
Relatives and spouses of former politicians, sport and other celebrities are also feeling the heat of the spotlight.
While the legal consequences are not yet clear at this stage, those named in the Panama Papers will find it hard to avoid social ramifications.
Nophakhun@nationgroup.com