Potjaman convicted of share tax evasion / Jailed for three years, out on bail / Ratchada land trial defense begins today
POST REPORTERS
Khunying Potjaman Shinawatra leaves the Criminal Court with her husband, deposed prime minister Thaksin, and their children after the court convicted her and two other defendants of tax evasion. |
The Criminal Court found Khunying Potjaman Shinawatra guilty of tax evasion yesterday, sentencing her to three years in jail - a precedent-setting ruling in the first of a series of court cases looming over the Shinawatra family.
The Supreme Court's Criminal Division for Holders of Political Positions today begins hearing the defence in the trial of Khunying Potjaman and her husband, former prime minister Thaksin Shinawatra, in the 772-million-baht Ratchadaphisek land case.
She is accused of buying a block of state-owned land at a deflated price with the aid of her husband while he was prime minister. Mr Thaksin is accused of abusing his authority.
The first defence witness in the case is scheduled to testify today, and the last on Aug 22. Khunying Potjaman is expected to appear as a defence witness on the final day.
The Supreme Court will then issue its verdict. There can be no appeal.
Khunying Potjaman, Mr Thaksin and three others also face charges in the SC Assets Corp share concealment case.
The Office of the Attorney-General has delayed a decision on the indictment, awaiting documents from the Department of Special Investigation. If indicted, the trial would be in the Criminal Court.
The Criminal Court yesterday found Khunying Potjaman, her step-brother Bannapot Damapong and her secretary Karnchanapa Honghern guilty of conspiring to evade tax in the share transfer.
The court ruled that the transaction did not really take place in the stock market and was faked to avoid tax.
Bannapot and Khunying Potjaman claimed the shares were a gift, but the court said that was not plausible.
Even though Bannapot was not as wealthy as Khunying Potjaman, the court was not convinced that he needed financial aid.
The court found Khunying Potjaman and Bannapot had deliberately avoided paying 546 million baht in tax for the transfer of 4.5 million shares in the Shinawatra Computer and Communications, now Shin Corp, worth 738 million baht.
Both were sentenced to two years in prison for conspiracy to evade tax and one additional year for giving false statements to state agencies with the intent of evading tax.
Karnchanapa was also found guilty of colluding in tax evasion and given a two-year jail sentence.
The court also reproached the three defendants - especially Khunying Potjaman - for failing to set a good example for society.
"The three defendants are of high economic and social status. When the offence was committed, the second defendant [Khunying Potjaman] was the wife of a holder of political office. Not only are the defendants bound to be decent citizens, they are expected to set good examples.
"However, the defendants colluded to evade taxes, which is in violation of the law and is unfair to society and the tax system.
"Moreover, the amount of tax to be paid by the first defendant [Bannapot] is incomparable to the amount of assets held by the second defendant and her family," the court said. Their offence was serious, it said.
The court spent almost two hours reading the 48-page verdict. Before the verdict was read, the court said the ruling was passed without prejudice and the parties concerned should appeal if they were not happy with it.
The three defendants were then released on bail of five million baht each.
Metha Thamviharn, lawyer for Bannapot, said he would appeal the verdict within 30 days and might ask for an extension because there were several points to argue.
A spokesman for Mr Thaksin also confirmed the case would be fought "all the way to the Supreme Court".
Senator Ruangkrai Leekitwattana, who initiated the share transfer saga, said the ruling should serve as a lesson for the Revenue Department. The verdict made it clear that any attempts to evade taxes would justify a criminal penalty.
Revenue Department chief Sanit Rangnoi admitted the ruling, which blamed the department for mistaking the share transfer as a gift - which led to a tax evasion, may affect the agency's stature.
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