The Department of Special Investigation (DSI) is recommending legal action against officials involved in customs clearance of five Porsches that were imported fully assembled, not as parts as declared.
DSI director-general Paisit Wongmuang said the National Anti-Corruption Commission (NACC) would be asked to investigate the customs officials involved, based on the findings of an investigation led by Pol Capt Surawut Rangsai, head of the DSI investigation team.
The case involving the five Porsches is the latest of several investigations the DSI has undertaken into tax evasion in the luxury sports car trade since 2013. Many supercars are imported fully assembled but false documents are used to claim that they are imported as parts to be assembled locally, which carry an import duty of 30% compared with the maximum 80% for fully assembled vehicles.
Taxes on luxury vehicles imported to Thailand can total as much as 328%, with the 80% import duty just the start. Excise tax, which increases with engine size, is calculated on top of the list price plus import duty, and VAT and local taxes are calculated on top of that.
Import duty on luxury cars used to be calculated based on cost, insurance and freight (CIF), but many importers grossly understated those figures to reduce their tax bill. A change was made last year to base the duty on retail prices, which are easier to verify.
In the latest case, the DSI said its investigators had examined five imported Porsches that were among many supercars seized in recent years. The findings showed that the Porsches had never been brought in as parts, and in any case the technology for assembling such high-end sports cars is not available locally.
The investigation showed that customs officials tasked with supercar clearance might have colluded with importers to accept false documents, said Pol Col Paisit.
A legally imported Porsche can sell for 10 million baht or more in Thailand, but the illegally imported cars were sold for only 3 million to 5 million baht each.
After examining the five vehicles, the DSI told their owners that they could keep the vehicles, but must be ready to hand them over to investigators when asked.
The DSI has also asked the Department of Land Transport not to register or transfer ownership of imported cars that were declared as assembled parts in a bid to prevent people from being duped into buying illegal vehicles.
The DSI said it would not take action against car buyers who bought the vehicles in good faith and were not involved in falsifying documents for registration. However, their vehicles must be impounded.
The buyers were advised to file civil suits against the sellers and importers for damages after the vehicles were seized.
The DSI has been investigating a total of 134 cases involving undertaxed luxury cars but has completed just 14 investigations so far.
About 10,000 luxury cars a year are imported to Thailand.
Deputy Prime Minister and Justice Minister Prajin Juntong, who oversees the DSI, admitted last year that the current tax structure frustrates business operators and that unscrupulous ones resort to tax evasion as a result.
A committee was set up last year to consider restructuring tax rates on luxury cars. ACM Prajin said at the time that a total tax bill of around 200% instead of 328% was a possibility.
