Revenue chief sees no irregularities in Paetongtarn’s share purchases

The Revenue Department chief stated on Wednesday that there were no irregularities in the issuance of promissory notes (PNs) without due dates or interest rates by Prime Minister Paetongtarn Shinawatra to purchase shares from her family members.

Pinsai Suraswadi, Director-General of the Revenue Department, explained that issuing PNs for off-market share purchases is a common practice, and such notes are not required to specify due dates or interest rates.

Pinsai was responding to an allegation made by the opposition during the censure debate, which claimed that Paetongtarn had falsified share purchases worth 4.4 billion baht from five family members to evade a 218-million-baht gift tax.

He clarified that a PN without a due date must be paid in full whenever the recipient requests payment. He also noted that the Civil and Commercial Code does not mandate an interest rate on PNs, but if one is set, it must be explicitly stated on the document.

Pinsai further explained that a PN is essentially a loan agreement between the issuer (debtor) and the recipient (creditor).

Regarding taxation, Pinsai stated that sellers of shares outside the stock market are required to pay tax upon receiving cash for the shares sold. However, if they receive PNs instead of cash, they are not immediately liable for tax.

In response, Paetongtarn affirmed that she would eventually pay cash for the shares purchased from her family.

If that happens, Pinsai said, Paetongtarn’s five family members would be required to pay income tax on the earnings in 2026.