A senior Finance Ministry official has been fired for suspected involvement in a value-added tax (VAT) refund scam that cost the state 3.21 billion baht in lost revenue during 2010-11.
The fate of an additional three or four high-ranking officials and those at operational level or below the C-9 level allegedly involved in the fraud will be decided by next month, Finance Minister Sommai Phasee said without naming those officials.
A disciplinary committee said Siripong Riyakarntheerachote, whose former name was Supakij Riyakarn, caused a hefty loss to the state while he was chief of the Revenue Department's Bang Rak district office, where the VAT fraud reportedly took place.
The ministry fired him for serious misconduct, Mr Sommai said.
Mr Siripong's latest position was chief of the Revenue Department in Narathiwat.
Sommai: Pursuing civil, criminal charges
The Finance Ministry launched the probe in 2013 and found that 30 juristic persons had set up bogus metal export companies and filed falsified documents with the Revenue Department's Bang Rak office to claim VAT refunds.
Various people were named as shareholders or directors, and some of the "companies" had offices that were found to be empty rented rooms.
Moreover, all the transactions were made by the same six buyers who did not run any business.
The fraud was carried out using a loophole under Section 19 of the Customs Act, stipulating that VAT collected on imported materials used to produce exported goods can be claimed.
Mr Sommai said the Finance Ministry would pursue civil lawsuits against wrongdoers and demand damages.
He has asked the Department of Special Investigation (DSI) and the Office of the National Anti-Corruption Commission to launch criminal investigations.
Earlier, the DSI under previous head Tarit Pengdith had probed the faked VAT refund scam but said it found no irregularity.
A committee chaired by Finance Ministry inspector-general Prasit Suebchana in 2013 said 20 officials colluded with the bogus companies.
The Criminal Court has also approved arrest warrants for five individuals alleged to have taken part in the refund scam.
Mr Sommai has instructed the Revenue Department to stem loopholes used for tax avoidance, aiming to boost tax revenue by 10-12% from current levels.
Cracking down on tax avoidance is one aspect of the government's policy to combat corruption and refresh the state coffers before heightened spending on infrastructure projects begins.