Paetongtarn accused of avoiding income tax worth 218.7 million baht

Prime Minister Paetongtarn Shinawatra was accused on Monday of avoiding gift tax worth 218.7 million baht after receiving stocks valued at 4.4 billion baht from her family.

During the first day of the censure debate against Paetongtarn, People’s Party MP Wiroj Lakkhanaadisorn alleged that she had forged share purchases from five family members to avoid paying gift tax on shares received as part of her family's business wealth distribution.

Wiroj argued that the share transactions were fraudulent, as Paetongtarn used promissory notes without due dates or interest rates.

“If she had genuinely purchased these shares with promissory notes, the notes should have included payment due dates and interest rates,” Wiroj stated.

Breakdown of Alleged Tax Avoidance

Wiroj claimed that by disguising the share transactions as purchases rather than gifts, Paetongtarn avoided paying at least 218.7 million baht in gift tax. He listed the transactions as follows:

Shares Received from Five Family Members

1. Pintongta Shinawatra Kunakornwong (Sister)

• Four promissory notes worth 2.388 billion baht for shares in PT Corporation Co Ltd, Rende Development Co Ltd, SC Office Plaza Co Ltd, and SCK Estate Co Ltd.
• Avoided paying 118.9 million baht in gift tax.

2. Panthongtae Shinawatra (Brother)

• A promissory note worth 335.42 million baht for shares in Rende Development.
• Avoided paying 16.3 million baht in gift tax.

3. Bannapoj Damapong (Uncle)

• Two promissory notes worth 1.315 billion baht for shares in OAI Management Co Ltd and BBD Development Co Ltd.
• Avoided paying 65.3 million baht in gift tax.

4. Busaba Damapong (Aunt-in-law)

• A promissory note worth 258.4 million baht for shares in BBD Development.
• Avoided paying 12.4 million baht in gift tax.

5. Khunying Pojaman Damapong (Mother)

• A promissory note worth 136.517 million baht for shares in OAI Consultant and Management Co Ltd.
• Avoided paying 5.8 million baht in gift tax.

Understanding the Gift Tax Law

A gift tax is levied when assets are transferred while the donor is still alive. It prevents the avoidance of inheritance tax and is collected at a flat 5% rate.

The tax applies to transferred assets exceeding 10 million baht. If the recipient is a parent, spouse, or heir, the exemption threshold increases to 20 million baht.

Additional Allegations of Tax Avoidance

Wiroj also accused Paetongtarn of assisting her mother and sister in avoiding a combined 18.2 million baht in gift taxes:

• Khunying Pojaman Damapong (Mother): Allegedly received shares worth 2.224 billion baht in Alpine Golf and Spa Co Ltd through annual transfers of 20 million baht in shares since 2016, saving 10.2 million baht in gift tax.
• Pintongta Shinawatra Kunakornwong (Sister): Allegedly received shares worth 169.4 million baht in Pramaisuree Property Co Ltd through annual transfers of 10 million baht since 2016, saving 8 million baht in gift tax.

Wiroj Challenges Paetongtarn and Thaksin

Wiroj referenced Paetongtarn’s previous refusal to answer reporters about the missing due dates on her promissory notes, stating, “Please save the prime minister.”

“I would like to inform Paetongtarn that no one can save her anymore because House regulation No. 177 requires her to answer this question herself—it concerns her own asset management,” Wiroj said.

He also challenged former PM Thaksin Shinawatra to intervene, suggesting that ruling coalition MPs could temporarily suspend House regulation No. 76 to allow him to respond on Paetongtarn’s behalf.

“I would like to see how sophisticated an answer from the [Pheu Thai] patriarch would be,” Wiroj remarked.

Call for Revenue Department Investigation

Wiroj urged the Revenue Department to probe the alleged irregularities in Paetongtarn’s issuance of nine promissory notes. He warned that if her actions were deemed acceptable, other wealthy families might use the same method to avoid gift taxes.

Additionally, he cautioned that government officials could later exploit this loophole to accept bribes, disguising them as debts recorded through promissory notes.

“How can we allow a tax-avoiding individual to continue serving as the prime minister?” Wiroj asked.