On Monday, Thailand’s Supreme Court mandated that former prime minister Thaksin Shinawatra, who is currently incarcerated, repay taxes related to the sale of his telecommunications company, as reported by the judiciary. Reports indicate that the amount owed is approximately half a billion dollars.
In 2006, Thaksin faced numerous corruption allegations and was embroiled in controversy regarding the tax-exempt sale of shares in his company, Shin Corp.
Later that same year, he was removed from his position as prime minister through a coup and subsequently lived in exile for over ten years.
Now 76 years old, Thaksin, one of the wealthiest individuals in Thailand, is presently serving a prison sentence in Bangkok for corruption during his tenure in office.
On Monday, the Supreme Court overturned a previous appeals court ruling in the tax matter, compelling Thaksin to comply with the Revenue Department’s directive to pay taxes, as stated by court spokesman Suriyan Hongvilai to AFP.
Suriyan did not disclose the exact amount to be paid or the rationale behind the court’s decision.
Multiple Thai media sources reported that the court has ordered Thaksin to pay 17.6 billion baht (equivalent to $540 million) in tax obligations and penalties.
In 2017, tax officials had issued a $500 million bill to the former prime minister, reviving a dispute that lies at the heart of the political divide between the populist leader and the military establishment.
The controversy revolved around whether Thaksin was liable for taxes on the sale of Shin Corp to Singapore’s Temasek Holdings in 2006.
The uproar surrounding the transaction, which yielded the Shinawatra family a $1.9 billion profit, became a focal point for opposition against his administration.
The protests ultimately led to the coup that removed him from power and ignited years of intense political conflict between his supporters and detractors.
For two decades, the Shinawatra family has been the primary adversary of Thailand’s pro-military and pro-royalty elite, who perceive their populist political approach as a challenge to the established social order.
