Thai authorities say they found irregularities involving an accounting firm and real estate projects possibly linked to foreign owners during a recent inspection of suspected nominee businesses on the tourist island of Koh Phangan.
Officials from the Department of Business Development (DBD) inspected four target locations on Tuesday as part of an investigation into businesses suspected of using Thai nationals as proxy shareholders for foreigners, according to director-general Poonpong Naiyanapakorn.
They found suspicious activity in two sectors – accounting services and real estate, he said.
In the accounting case, an accounting firm was discovered to have the same owner listed as a shareholder in 66 companies, with three of the inspected locations linked to this individual.
The buildings in question were also registered as the addresses of 89 business entities, many of which showed no signs of active operations.
Police seized documents and computers for further examination and the accounting firm and related companies were ordered to submit additional documents for a full examination, said Mr Poonpong.
The second case involved a luxury villa project comprising eight units rented to foreign tourists for 13,000 baht a night without a hotel licence. The project manager and foreign guests were questioned.
Initial findings indicated that the land, which was valued at 152 million baht, was owned by two Thai-registered companies with 49% Israeli ownership. A third Israeli company later purchased shares, raising suspicions of tax evasion and use of Thai nominees.
Mr Poonpong said foreign ownership in real estate is strictly controlled under the Foreign Business Act and brokerage or property management by foreign nationals requires strict screening and official approval.
The department is working closely with the Tourist Police, Immigration Bureau, Revenue Department and local authorities to tighten enforcement and protect Thai entrepreneurs, he said.
The southern province of Surat Thani, where Koh Phangan and Koh Samui are located, has been identified as the country’s second-highest-risk area for nominee operations.
Five Thai shareholders – one legal entity and four individuals – were listed as shareholders in 256 companies based in Koh Phangan, investigations have found.
‘This operation is part of the stepped-up plan to crack down on nominee businesses and ensure compliance so the country’s economy grows sustainably,’ Mr Poonpong said.