Steel-ing millions! Firm in hot water over 200m baht tax scam
A Thai steel company is facing the heat after allegedly forging over 7,000 fake tax invoices in a scam worth more than 200 million baht, sparking a full-blown criminal investigation by the Department of Special Investigation (DSI).
Officials from Regional Revenue Office 3, yesterday, April 3, marched into DSI HQ on Chaeng Watthana Road to file a formal complaint against Xin Ke Yuan Company Limited, a steel manufacturing firm accused of cooking the books between July 2015 and March 2017.
DSI chief Police Colonel Yuthana Phaedam wasted no time assigning Lieutenant Colonel Surawut Rangsai to spearhead the case, which insiders say is shaping up to be one of the biggest tax dodges in recent memory.
The company allegedly used the bogus invoices to illegally claim tax credits, a serious criminal offence under Thailand’s Revenue Code.
According to an announcement from the Ministry of Finance (No. 8 of 2568), dodgy dealings of this scale qualify as a special case under the Special Investigation Act of 2004, giving the DSI the green light to dig deep and prosecute under Section 90/4.
Interestingly, while the scandal dates back nearly a decade, and even pre-dates the construction of the nearby Office of the Auditor General, it’s now been reignited as part of a joint crackdown following a building collapse in the same district, said a DSI insider.
“The financial damage is massive. We’re moving quickly to propose this as a special case to the Director-General so we can prioritise prosecution.”
As the DSI sharpens its claws, Xin Ke Yuan now finds itself under intense scrutiny, with investigators set to comb through the firm’s entire financial history, KhaoSod reported.
Looks like the steel giant could be about to face the full weight of the law, and he isn’t the only one.
Last year Thai officials arrested a 46 year old accountant involved in a substantial tax invoice fraud, causing a loss of over 130 million baht (US$3.6 million) to the state.
The arrest of Wimala, the man at the centre of the investigation, marked a significant breakthrough in a tax evasion case that has highlighted vulnerabilities in the country’s financial regulation systems.
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