The Department of Special Investigation (DSI) is preparing to investigate some 10,000 imported supercars as it widens its crackdown on a tax avoidance network.
The move follows the DSI's move on Thursday to impound 122 luxury cars -- the tally went up from 60 after one DSI unit reported its results today -- in raids on nine locations in Bangkok and Samut Prakan. The premises are linked to Niche Cars Group, an authorised importer and distributor of supercars.
Supercars are classified as luxury, high-performance sports cars with price tags above 8 million baht.
Speaking at a press conference on the raids, DSI director-general Paisit Wongmuang said DSI officials will track the imports and sales of the luxury car sector as a whole and press charges against those who break the law.
Based on the DSI's lengthy investigation into the alleged tax evasion scheme, up to 10,000 supercars have been imported and these vehicles will be probed to ensure they are properly taxed, he said.
To avoid paying a high import tax, importers understate often the prices of their vehicles by as much as 40%, he said.
He added that the alleged tax evasion scheme involving the seized cars is estimated to be worth 2.4 billion baht, or 10 million to 18 million baht per car.
The raids are the result of the DSI's lengthy inspection and probe of a trailer truck transporting luxury cars that was engulfed in a fire in Nakhon Ratchasima's Pak Chong district in May 2013.
According to DSI investigators, eight of the locations were in Bangkok with the other in Samut Prakan.
The Bangkok raids were conducted at: Niche Cars Group in Suan Luang district; the firm's Lamborghini showroom at Siam Paragon shopping mall in Pathumwan district; and two vehicle showrooms operated by STT Auto Car company in Huai Khwang and Watthana districts.
The other Bangkok locations were the houses of a Jubilee Line executive and Niche Cars Group car salesman in Bang Kapi district; and a home of an accountant attached to Benz Nakarin Auto Group, Niche Cars Group and Jubilee Line in Bang Kapi district.
The other location was another house belonging to a Jubilee Line executive in Samut Prakan's Muang district.
Representatives from the companies could not immediately be reached for comment.
DSI deputy chief Korawat Panprapakorn, however, said the investigation into the tax-evasion scheme may hit a snag because data from luxury car dealers in foreign countries may not have been completed.
Dealerships in certain countries keep documents for five years only, he said.
According to Pol Lt Col Korawat, luxury car importers usually engage in false declarations to avoid paying high taxes.
For example, a Lamborghini imported in April 2010 and seized from Niche Cars Group was declared at US$105,000, or about 3.4 million baht, which is subject to a 328% tax, or 11 million baht.
But based on the Italian price tag of €286,000, or 12 million baht, the car should be subject to 41 million baht tax and so the tax paid to the government falls short by 30 million baht. He said those cars have been impounded because if there is a transfer of ownership, the new owner would absorb the tax burden.
Dusadee Arayawuth, deputy permanent secretary for justice, said the scheme also includes vehicles declared as "imported automobile parts" that are reassembled locally.
This group of vehicles is actually imported as completed units, but are declared so because cars locally reassembled from imported parts are taxed at a lower rate than imported luxury vehicles.
Pol Col Dusadee said the DSI has to find out the prices of these vehicles before they are shipped to Thailand, and the declared prices.
According to the deputy permanent secretary, if an authorised dealer is involved in alleged tax avoidance, the company and state officials will be responsible for the unpaid taxes. He said the fraud involving the vehicles falsely declared as "imported automobile parts" is estimated to deprive the government of 10 billion baht annually in unpaid taxes.
Noppadol Rattanasathien, a DSI specialist, said the DSI has looked into a total of 7,123 cars for suspected tax evasion and found that 3,773 are illegal.
Some 1,038 were found in violation of the customs code, with 25 cases accepted as special cases. Those involved, including local politicians and police, have been charged.