This is turning into a busy week for the Department of Special Investigations (DSI).
Not only is that law enforcement body moving heaven and earth to see that Bangkok’s illegally acquired luxury cars meet their just reward, but now we’re also receiving news that the DSI has asked Krungthai Bank to freeze the assets of 30 companies that are accused of perpetrating Value Added Tax (VAT) fraud.
DSI chief Tarit Pengdith has stated that the 30 companies were found guilty after an investigation by the DSI, and an initial report by the Finance Ministry.
The companies stand accused of making false statements with regard to their imports and exploiting the “Section 19” loophole in the Customs Act.
The Bangkok Post reports that this loophole exists thanks to Customs Department effort to shorten the waiting period for VAT refunds. By shortening the waiting period, the Department has allowed multiple claims to be rushed through without investigation.
