The Revenue Department will submit a list of 14 additional officials suspected of involvement in a fraudulent value-added tax (VAT) refund scam in recent years to the Finance Ministry.
They were allegedly involved in fraud that cost 4.3 billion baht in lost revenue from 2012-13 in the Revenue Department's Bang Rak district office, department director-general Prasong Poontaneat said.
Earlier the Finance Ministry decided to oust Siripong Riyakarntheerachote, whose former name was Supakij Riyakarn, for serious misconduct, as a probe found he colluded with groups in VAT refund fraud while he was head of the Bang Rak office.
The ministry at that time said it was mulling the fate of three or four more high-ranking officials as well as those at the operational level, or below C-9, who were allegedly involved in the case.
Prime Minister Prayut Chan-o-cha recently ordered the removal of the first batch of 45 officials and local administrators under investigation for corruption by the National Anti-Corruption Commission, shunting them to inactive posts.
Among them is Finance Ministry chief inspector-general Sathit Rangkhasiri, whose transfer is believed to be linked to the VAT refund scam.
The ministry launched the probe in 2013 and found 30 juristic persons had set up bogus metal export companies and filed falsified documents with the Revenue Department's Bang Rak office to claim VAT refunds. Various people were named as shareholders or directors, and some of the "companies" had offices that were found to be empty rented rooms.
Moreover, all the transactions were made by the same six buyers, who did not run any businesses.
Separately, the department is investigating two groups of individuals suspected of involvement in another VAT refund fraud, Mr Prasong said without elaborating further.
A draft bill authorising the Revenue Department to freeze the assets of those allegedly involved in tax fraud is pending deliberation by the Office of the Council of State, he said, adding that it had already won cabinet approval.
Under the bill, the department will be able to block all financial transactions of suspects at domestic financial institutions, offering the department greater flexibility so it can chase after unpaid tax from fraudsters and their accomplices.
He said the department also wanted to amend the law to allow financial institutions to inform it of financial transactions from those suspected of tax dodging or fraud, but several parties opposed the idea since it would give the department too much power.
The department can ask for financial data from financial institutions now on a case-by-case basis.
In another development, the Revenue Department will join with the Government Lottery Office (GLO) to backdate tax payments of lottery vendors found selling tickets for more than the capped price of 80 baht a pair.
Next week, the department will send representatives to meet with the GLO board to inform its members about the investigation process, Mr Prasong said.
If vendors are found to be selling overpriced lottery tickets or understating the amount to avoid tax payments, they will be fined twice the expected tax and required to include that income or assets in their taxable income.
