Thailand’s former Prime Minister Thaksin Shinawatra’s long-standing tax dispute has taken a new turn. On the 17th, the Thai Supreme Court ruled that Thaksin must pay additional taxes and fines amounting to 17.6 billion baht (about 2.26 billion ringgit) in relation to the sale of shares in his telecommunications company, overturning a previous appeals court verdict.
Supreme Court spokesperson Suriyan confirmed to AFP that the court had rejected the appeal and upheld the tax department’s decision requiring Thaksin to pay the taxes, but did not disclose the exact amount or detailed reasoning for the ruling.
Multiple Thai media outlets reported that the court requires Thaksin to pay 17.6 billion baht in taxes and penalties.
In January 2006, while serving as prime minister, Thaksin pushed parliament to amend the “Thai Telecommunications Act”, raising the cap for foreign ownership in Thai telecom firms from 30% to 49%. Days later, the Shinawatra family sold 48% of Shin Corp, Thailand’s largest integrated telecom operator, to Singapore’s Temasek Holdings in a deal worth $1.88 billion.
According to Thai securities law, stock transfer transactions are exempt from tax. However, Thaksin was accused by the opposition of abusing power to amend the telecom law and exploiting legal loopholes for tax evasion. In September that year, Thaksin was ousted in a coup and began living in exile overseas.
After returning to Thailand last year, Thaksin was sentenced to eight years in prison for abuse of power and corruption during his tenure, but was later pardoned by King Maha Vajiralongkorn and the sentence commuted to one year. Since his return, Thaksin’s political influence has remained closely watched, making him one of the most controversial figures in Thai politics.
The Thai tax authorities had already issued Thaksin a tax bill of about $500 million back in 2017, reigniting political rifts between Thaksin’s faction and conservative military forces. The Supreme Court’s latest decision is expected to bring further uncertainty to Thailand’s political landscape.