The property developer Sansiri Plc on Thursday defended former chief executive Srettha Thavisin, the Pheu Thai Party’s prime ministerial candidate, against allegations made by whistleblower Chuvit Kamolvisit that he was complicit in tax evasion.
The former massage parlour tycoon presented documents which he said were strong evidence of irregularity in connection with a land purchase the company made in August 2019, when Mr Srettha was the chief executive of Sansiri.
Mr Chuvit claimed that Mr Srettha and Sansiri had colluded with the landowners to evade 521 million baht in taxes on the developer’s purchase of the prime 400-square-wah land plot on Sarasin Road in Bangkok.
The reported purchase price for the site was 1.57 billion baht, or nearly 4 million baht per square wah (4 square metres). At the time it was the most costly land acquisition in the company’s history.
He said Mr Srettha signed off on the purchase and sale agreement with the 12 people who owned the land under one title deed. The 12 owners formed an “ordinary partnership”, under which each one would be liable for excise tax on the proceeds of the sale, at a total of 521 million baht, according to Mr Chuvit.
To avoid such a huge tax payment, Mr Chuvit said that each of the 12 individuals went to the Department of Land to transfer smaller plots to Sansiri, taking 12 days to complete the process. These transactions were not subject to the same tax treatment as an ordinary partnership.
According to Mr Chuvit, only 59.2 million baht in taxes were paid on the transaction.
He said Mr Srettha could not deny his connection with the case because the company’s minutes had shown his appearance and his signature on the documents, which were separated into 12 copies, mentioning the names of different sellers.
In its statement, Sansiri said the sellers were responsible for taxes and ownership transfer fees for the land sale, while the company had the duty of making payments at the agreed prices and getting the land ownership transferred.
The company had no knowledge of or involvement in the sellers’ tax payments, it said.
“In his capacity as the company’s top executive, Mr Srettha approved the purchase of the land plot,” said the statement.
“The land contract, payment and land ownership transfer were the duty of the property team, which was also responsible for coordinating (with the parties concerned).”
The ownership transfer followed proper procedures, laws and regulations at the Department of Land, it added.
The company also affirmed that it had strictly abided by good governance and the rule of law in running its business.
Mr Chuvit said it did not seem right that Move Forward Party leader Pita Limjaroenrat faces disqualification for owning 42,000 shares in a defunct TV company while bigger infractions are ignored.
“The government doesn’t lose any revenue from that case,” he said. “But in Mr Srettha’s case, he has avoided tax payment, leading to damages of 521 million baht to the state.
“I will take all the documents to the senators and the House speaker for their consideration, to decide whether they will give support to a person who has committed an act against the law through tax evasion,” he added.
Mr Chuvit said he also intended to forward his information to the Securities and Exchange Commission.
He insisted that his disclosure had nothing to do with personal revenge or disappointment that Sansiri did not buy a plot of land he owned.
He added that he had no objection to a prime minister from the Pheu Thai Party, which has put forward two other candidates. Personally he supports the legal expert Chaikasem Nitisiri, who has the full support of Thaksin Shinawatra, the founder and still the real power behind the party.
Former massage parlour tycoon Chuvit Kamolvisit shows a chart detailing what he alleges was tax evasion by property tycoon-turned politician Srettha Thavisin, the Pheu Thai Party’s prime ministerial candidate, at a press conference at The Davis Hotel in Bangkok on Thursday. The developer Sansiri Plc defended itself and its former top executive over the allegations. (Photo: Apinya Wipatayotin)