Phuket lawyers, accountants targeted for enabling Thai nominees

PHUKET: Officials will be investigating legal firms and accounting offices connected with businesses suspected of using Thai nominee shareholders to circumvent laws prohibiting foreigners from owning more than 49 per cent of a company within the Kingdom.

“We will be looking at whether or not certain lawyers and accountants are providing transparent services for foreign investors. Foreigners are not able to set up Thai nominee companies on their own – there are without a doubt complicit professionals,” Tourism and Sports Minister Kobkarn Wattanavrangkul said during a meeting in Phuket yesterday. “This is something we must look into, in addition to the regular reviews of companies’ finances.”

In November, the Phuket Business Development Office (BDO) identified more than 3,000 companies that failed to submit their annual financial report. The majority of them had foreign shareholders, which raised the question of whether or not they were illegally using Thai citizens as ‘fake’ shareholders.

“Though we have yet to make any arrests following the identification of the companies, it does not mean that there are no nominee businesses operating on the island,” said Phuket BDO Chief Nimit Kangkajit.

“Foreign investment is a very good thing for Phuket. It promotes higher employment rates, financial development and economic flow. However, these investors must comply with Thai law.”

The majority of investment in Phuket is currently coming from the British Virgin Islands. The amount of cash flowing in from the well-known tax haven is followed by investment from England, Hong Kong, Russia, Malaysia and China respectively.

Ms Kobkarn confirmed to meeting attendees that a committee has been set up to strictly monitor the behavior of both existing and new businesses regarding the use of Thai nominees. However, she did not reveal any details on exactly how this was being done.

— Kongleaphy Keam