The Supreme Court has overturned the ruling of the Court of Appeal for Specialised Cases, which spared former prime minister Thaksin Shinawatra from paying 17.6 billion baht in capital gains tax for the transfer of his shares in Shin Corporation to his two children, Panthongtae and Pinthongtha Shinawatra, back in 2006.
In overturning the Appeal Court ruling, the Supreme Court ruled that the Revenue Department had performed its duty legally in the assessment of Thaksin’s personal tax liability, relating to the transfer of his shares to his two children.
Thaksin sued the Revenue Department and members of the Appeals Board, demanding the withdrawal of the tax assessment, claiming that it was unlawful. The Central Tax Court ruled in his favour, a decision which was upheld by the Court of Appeal. The Revenue Department, however, appealed to the Supreme Court.
The Supreme Court concluded that Thaksin intended to conceal his controlling stake in Shin Corp by transferring his shares to his two children before entering politics in 2006, as political office holders are forbidden from holding sharers in a private company.
The Supreme Court also ruled that Thaksin’s conduct in concealing the share transaction was unethical and contravened the spirit of the tax law. It overturned the Appeal Court’s ruling and ordered Thaksin, who is currently in prison on another matter, to pay the 17.6 billion baht to the Revenue Department.
