Dodgy deals and duds: Online trader busted in Buriram for tax evasion on kids’ clothes

An online trader was left shocked when he was busted for tax evasion after the Intellectual Property Rights Police raided a prominent company located in Buriram province. The raid uncovered imported children’s clothing being sold online, deliberately avoiding import tax. The tax evasion resulted in a fine four times the evaded amount, totalling more than 16 million baht.

Deputy Chief of the Provincial Police Region 3, Vacharakorn Chamnan, today led a team of officers with a court warrant to search a company based in Ban Dan district. The investigation followed information that the company was selling imported goods online, bypassing import tax.

The search resulted in the seizure of five items, which included 38,000 sets of children’s clothing imported and sold in Thailand. The total value of the seized items was estimated to be 4,180,000 baht (US$117,972). Other items collected include a white HP desktop computer, a printer, a keyboard, and a mouse.

Officers arrested two employees, 24 years old Premwinee and 22 years old Ariya, who were responsible for managing online orders and shipping to customers. The registered owners of the company, 38 years old Thanapa and 28 years old Surasawadee were both abroad at the time of the raid, reported KhaoSod.

Upon questioning, Ariya stated that she was merely an employee of the company, which had been operating for approximately three years. Her duties were to manage orders and pack items for shipment. She earned a monthly salary of 10,000 baht (US$282) and was not aware if the company’s products were subject to customs tax. Each item sold for 110 baht (US$3), inclusive of shipping costs.

Preliminary police findings revealed that the company’s bank account saw a monthly turnover of four to five million baht (US$112,905 to US$141,131). The two arrested individuals were handed over to the police station in Ban Dan district to face charges of tax evasion.

According to the Customs Act BE 2560, anyone who knowingly assists in smuggling, selling, or receiving goods which have been imported by evading customs duties or restrictions is liable to a fine four times the value of the goods, including the evaded duty, or imprisonment not exceeding five years, or both.

The police seized 38,000 sets of children’s clothing, which were taken to the Chom Chom Customs Office in Kab Cheng district, Surin province, to assess the unpaid customs duty.

If the company were to be fined four times the value of the seized goods as required by law, the fine would amount to approximately 16,720,000 baht (US$ 471,890).

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