Krabi: Five tourism businesses on Koh Lanta are suspected of being nominees. The Department of Business Development conducted an inspection of tourism businesses in Koh Lanta, Krabi province, and found five individuals suspected of acting as "nominees" within groups of hotels, tour companies, diving businesses, and restaurants, concealing their shareholder structures and financial transactions. The cases will be forwarded to relevant agencies for legal action.
According to Thai News Agency, Mr. Poonpong Naiyanapakorn, Director-General of the Department of Business Development, revealed that the department, in collaboration with relevant agencies such as the Department of Tourism, the Krabi Provincial Tourism and Sports Office, the Tourist Police Division, the Immigration Bureau, and the Krabi Provincial Commerce Office, conducted inspections of high-risk businesses including hotels, tour companies, diving businesses, and restaurants.
The investigation revealed that five business operators were in violation of the Foreign Business Act B.E. 2542 (1999) by having Thai nationals hold shares on behalf of foreigners or managing businesses without genuine authority.
Furthermore, the investigation revealed instances of fabricating accounting documents and shareholder structures to conceal the source of funds, as well as systematically transferring profits back to foreign countries. This may constitute tax evasion and reflects a complex network of business operations. The Department of Business Development will forward this information to the Department of Special Investigation (DSI), the Central Investigation Bureau (CIB), and the Revenue Department for further investigation and prosecution to the fullest extent of the law.
The Director-General of the Department of Business Development stated that this action is in line with the policies of the government and the Ministry of Commerce, which aim to regulate the tourism business and seriously address the nominee issue. This is because it is a structural problem that affects fair competition for Thai businesses. Businesses with hidden foreign capital often have a capital advantage, allowing them to undercut prices and expand rapidly, thus disadvantaging Thai businesses and resulting in lost tax revenue for the government.
The offense is punishable by imprisonment for up to 3 years, or a fine of 100,000 to 1,000,000 baht, or both. Continued violations will result in additional daily fines. Furthermore, those who provide support, such as nominee shareholders, accountants, or consultants, may be prosecuted as accomplices.
The authorities reiterated the importance of business operators conducting their operations legally and warned against accepting proxy shareholdings, stating that the long-term legal risks outweigh the benefits.