Just 4 of 26,000 firms found using Thai nominees

Only four out of more than 26,000 businesses in Thailand inspected by the Business Development Department were found to be illegally operating through nominees, while 64 others were found to have violated the accounting law.
Department director-general Auramon Supthaweethum on Monday said that her department recently inspected 26,019 businesses across four sectors, including tourism and related services, real estate, hotels and resorts, and logistics, in a bid to find foreign-owned businesses run through Thai nominees. 
The businesses were based in six provinces — Bangkok, Surat Thani, Prachuap Khiri Khan, Chiang Mai, Phuket and Chon Buri. After initial screening, 498 businesses were flagged for further investigation. Of these, 371 were later cleared, Ms Auramon said.
Sixty-four of the 127 remaining businesses faced allegations of accounting violations. These have been referred to the Revenue Department for further scrutiny, she said.
Investigations into the other 63 businesses are ongoing, but four of them were found to be operating through nominees. These were located in Bangkok, Surat Thani, and Prachuap Khiri Khan.  
“The department has also broadened its investigation to encompass other sectors due to complaints from the public and entrepreneurs about cheap substandard imported goods and the presence of foreign enterprises that are not complying with Thai laws,” she said.
Recent inspections jointly carried out by the Business Development Department and the Bangkok Metropolitan Administration (BMA) in areas such as Huai Khwang and Sampheng revealed potential nominee practices by some businesses, prompting further investigation.
Nominee shareholding can result in penalties, including imprisonment for up to three years or fines ranging from 100,000 to one million baht, or both, she said.