Dsi Plans Foreign Proxy Firms Crackdown Closing the loopholes ?
Posted 07 January 2012 - 09:28 AM
DSI plans foreigner proxy firm crackdown
Published: 7/01/2012 at 12:00 AM Newspaper section: News
The Department of Special Investigation will crack down on foreigners, some of whom are gangsters, who illegally exploit loopholes to operate businesses which are normally off-limits to them.
DSI chief Tharit Pengdit unveiled his plans after the cabinet had given the agency the authority to investigate nine more categories of special cases including human trafficking, computer crime and foreign business.
Mr Tharit said executives were deciding how to to crack down on criminals this year.
The DSI will target transnational criminals who have exploited loopholes in the legal system to use Thai nominees to run businesses not open to foreigners, as their influence was expanding.
The state was losing huge amounts of taxes and revenues as a result of such schemes, he said.
Under the Foreign Business Act 1999, businesses such as newspaper publishing, radio broadcasting, television, logging, rice farming and land trading are off-limits to foreigners.
Other businesses covered by the law such as sugar-making or mining must be majority-owned by Thais.
The law, however, has a loophole in that it does not forbid foreigners from holding a majority on the board of directors or having control over voting rights.
Mr Tharit said many foreigners have sought to invest in prohibited businesses by using Thai proxies to operate on their behalf.
Businesses which foreigners have entered include rock-blasting and crushing, sugar mills, tourism, engineering and architecture.
He said foreigners are behind the operations of many of these reserved businesses in Koh Samui and Phuket and several other tourist provinces.
Previously, many of these foreigners held land through Thai nominees for their own use, but now they are expanding their influence into new sectors such as real estate, land development and building condominiums, Mr Tharit said.
The DSI had also heard reports of a group of foreign gangsters extorting protection fees from other foreigners.
Mr Tharit said some of these foreigners had used Thai nominees to set up shell companies and used them as a front to launder money and transfer the laundered money overseas.
Others are involved in passport forgery and human trafficking, he said.
Mr Tharit said the DSI would have to take an aggressive approach to cracking down on these activities before Thailand enters the Asean Economic Community in 2015.
===> They target certain sectors only, but there could be "collateral damage"
Could this be a worrying sign for all who have "semi-legal" business set ups using the usual loopholes in the laws ? ?
Posted 07 January 2012 - 04:34 PM
Many hate Thailand because the cops dont apply the law,and dont look after farangs.Drink driving causes many deaths on the road mate,because the cops dont apply the law.
Posted 07 January 2012 - 04:39 PM
It does yes but for every negative there's a positive.
If they applied the Law, most bars and all go-go's would shut, regardless of the argument they are places that encourage the soliciting of prostitutes, they would close down.
If they applied the land Law you wouldn't be allowed into your house tonight, they would need to investigate every property that was procured using a Thai company.
If they applied the Law there would be no girls on beach road.
If they applied the Law in Pattaya they would kill it STONE DEAD.