Thaksin's wife charged with tax evasion

OUT ON BAIL: Khunying Pojaman (centre) leaves Bangkok's Criminal Court amid tight security. She faces 14 years' jail if found guilty. -- REUTERS



BANGKOK - THE wife of ousted Thai prime minister Thaksin Shinawatra was yesterday charged with tax evasion, opening the first corruption case involving the former leader's inner circle since the military-led coup last September.

Amid tight security, Khunying Pojaman Shinawatra, her brother Bhanapot Damapong and secretary Kanchanapa Honghern were charged in Bangkok's Criminal Court with failure to pay 546 million baht (S$26.3 million) in back taxes.

They were released after posting bail of 15 million baht each. A trial date has been set for May 14.

The case marks the first prosecution of those close to Mr Thaksin, who was overthrown last year by generals who accused him and his associates of corruption.

The prosecution of Mr Thaksin's wife, once considered one of Thailand's most powerful women, comes amid growing pressure on the military rulers to prove their allegations.

Khunying Pojaman, 50, dressed in yellow to signify loyalty to Thailand's King, made no comment yesterday as she left the court.

But the family's spokesman and legal adviser Noppadol Pattama told reporters: 'We are confident we will receive justice in the trial. We are ready to prove her innocence in court.'

An Assets Examination Committee set up by the military-appointed government ruled last month that Khunying Pojaman and her brother should pay back taxes of about 546 million baht on a 1997 share transfer.

The case has nothing to do with the controversial sale last year of the family's shares in telco conglomerate Shin Corp to Singapore's Temasek Holdings. That sale is being investigated separately.

Khunying Pojaman and Bhanapot could each be jailed for up to 14 years and fined 400,000 baht if found guilty of two charges of tax evasion. The secretary, who faces one charge, could be fined 200,000 baht and jailed for seven years.

The case centres on a sum of US$15 million (S$22.7 million) given to Bhanapot by Khunying Pojaman in 1997, which she said was a wedding gift and as such, tax-free.

He used the money to buy 4.5 million shares in Shin Corp, which Mr Thaksin had parked with his domestic maid prior to taking public office, so as to distance himself from his business interests.

The revenue department at the time agreed that the fund transfer was a gift. The Assets Examination Committee disputes this, saying it is liable for tax.

The usually low-profile Khunying Pojaman was often credited by her husband for his success in business, and was a key decision-maker in his Thai Rak Thai party's inner circle.

Among the hundreds of supporters who turned up outside the court yesterday were the former premier's sister Yingluck Shinawatra and former justice minister Pongthep Thepkanchana.

Around 20 supporters held red roses and a sign that read: 'They can't do anything against Thaksin, so they're going after his wife and children.'

The former premier's family members face other investigations related to land deals and share transfers. He has not returned to Thailand since the coup, and is currently in Washington.

Analysts say a guilty verdict would certainly hurt Mr Thaksin's chances of returning home to resume a role in politics.

But it would not entirely bury them. As independent analyst Laurent Malespine noted: 'Many people may feel the government was desperate for just any case against Thaksin.'