Bangkok: The Department of Business Development and the Revenue Department are joining forces to crack down on nominee structures and curb illegal foreign investment.According to Thai News Agency, the collaborative effort aims to enhance transparency in Thailand's business sector by streamlining operations and sharing in-depth data to combat all forms of illegal business activities and tax audits, particularly those involving nominees. Initially, the focus will be on five high-risk business categories: tax payment data, businesses without verifiable physical locations, joint ventures and foreign legal entities for financial statement verification, VAT-registered legal entities, and detailed shareholder information. Following a strategic meeting between the two departments, the Department of Business Development is set to analyze the shared information and inspect high-risk businesses that violate the law, working closely with partner agencies to enforce regulations.Mr. Poonpong Naiyanapakorn, Director-Gen eral of the Department of Business Development, highlighted a recent meeting with Mr. Somsak Anantawat, Director-General of the Revenue Department, which aimed to streamline work processes and facilitate the business sector. This includes simplifying the process for changing registered business addresses for VAT-registered entities, enabling them to register at a central location within the Department of Business Development. The meeting also addressed the prevention and suppression of illegal business practices, particularly the use of Thai nationals as nominees. Both departments have access to comprehensive data on legal entities across the nation, including business registration, shareholder data, financial statements, and VAT registrations. Due to the sophisticated tactics employed by criminals posing as businesspeople, the collaboration is deemed crucial to prevent and suppress these illicit activities. The focus will be on rigorous law enforcement and in-depth investigations using existing data.Mr. Po onpong emphasized that the primary goal of this collaboration is to expedite information exchange between the agencies, ensuring tangible results in the prevention and suppression of illegal businesses. This initiative aims to restrict foreigners from conducting business in Thailand through Thai nominees and prevent potential widespread economic damage."The information exchange between the two agencies marks a significant step towards legitimizing businesses that operate honestly and strengthening the country's economic system. This will build confidence among Thai and foreign investors by demonstrating that business operations in Thailand are supported and facilitated by government agencies, creating a favorable business environment," Mr. Poonpong concluded.
