The Department of Business Development (DBD) plans to announce new measures that will prevent individuals involved in nominee practices from becoming accountants.
Auramon Supthaweethum, director-general of the DBD, said the recent investigations into nominee cases found some accounting firms and accountants had advised and assisted in the registration of legal entities by using Thai individuals as directors or shareholders in the nominee activities.
This practice allows foreigners to operate businesses in Thailand while avoiding proper legal compliance.
According to the Foreign Business Act, foreigners wishing to invest at least 50% in certain restricted sectors including construction; retail or wholesale with capital under 100 million baht; hotel operations; tour services; food and beverage sales; and other service businesses are required to obtain approval from the foreign business committee.
Those who violate this law can face up to three years in prison, fines ranging from 100,000 to 1,000,000 baht, or both. Thais facilitating these nominee violations are subject to the same penalties under Section 36.
To discourage accountants from supporting illegal business activities that undermine fair competition for Thai entrepreneurs, Deputy Commerce Minister Napintorn Srisunpang, who chairs the Subcommittee on Preventing and Suppressing Concealed Foreign Nominee Businesses, has directed the DBD to formulate an announcement outlining the qualifications and conditions for accountants.
The proposed regulations will prevent anyone linked to nominee practices from holding accountancy positions in accordance with the Accounting Act.
The draft includes essential points, for example, that accountants are prohibited from assisting, supporting or engaging in nominee business activities or holding shares on behalf of foreigners.
Those who violate these regulations may face administrative fines of up to 10,000 baht under Section 27 of the Accounting Act, in addition to losing their qualification to practice as accountants.
Eligibility for reinstatement will only occur if it has been two years since a fine was paid or a court judgement was announced or that they provide substantial evidence or testimony that aids in pursuing legal actions for violations under Section 36 of the Foreign Business Act.
Mrs Auramon said this initiative to bar individuals involved in nominee activities from serving as accountants is crucial for safeguarding national interests, ensuring fair business practices and promoting a fair business landscape both for Thai entrepreneurs and foreign investors who are complying with the law.
The draft announcement is open for the public to comment on at http://www.law.go.th until May 7.