Court takes aim at proxies

Thaksin verdict an attempt to end obscured ownership through abuse of offshore entities, writes Karnjana Karnjanatawe

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The Supreme Court has overturned previous rulings, reinstating the 17.6-billion-baht tax assessment against former prime minister Thaksin Shinawatra, ending eight years of legal proceedings.

The liability stems from the sale of Shin Corporation shares through his children via Ample Rich. Earlier, both the Central Tax Court and the Appeal Court had annulled the claim on procedural grounds. The case underscores enduring challenges in Thai tax law, particularly regarding proxy ownership, offshore structures, and the boundaries of legal compliance in share transfers.

What is Ample Rich, and why is it linked to Thaksin?

Ample Rich Investment Limited was established by Thaksin Shinawatra in March 1999 in the British Virgin Islands. The company had a registered capital of US$50,000, divided into 50,000 shares at US$1 each, of which only one share was fully paid. Thaksin personally held that single share.

He sold 32,920,000 Shin Corp shares to Ample Rich at par value (10 baht), even though the market price was significantly higher. This offshore company was thus Thaksin's vehicle to manage his Shin Corp holdings indirectly, without directly appearing as the owner.

The creation of Ample Rich ultimately laid the groundwork for later share transfers to his children and the eventual sale to Temasek Group.

In what way did Panthongtae and Pintongta become involved?