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'About 100' Phuket Tourism, Property Businesses With Foreign Links Face Investigation

Saturday, February 2, 2013
PHUKET: About 100 Phuket businesses - especially in property and tourism - are likely to be targetted in an investigation over the next month, says the Director of Phuket's Department of Business Development.

The data-accumulation process has already been underway through January, says Director Nimid Kangkajid, rejecting the notion that some kind of ''scare'' campaign is being conducted.

People from 80 different nationalities had involvements with businesses on Phuket, said Khun Nimid, noting that those with Russian connections had been increasing most rapidly lately.

Work permits totalled 646 for Russians, he said - 327 in Phuket City, 213 in Kathu district and 106 in Thalang.

He said closest scrutiny was likely to be applied to about 100 businesses relating to property and to various aspects of tourism, including tours, diving, restaurants and bars.

To put it is proportion, he said, new companies on Phuket had increased by 1370 in 2011 and 1437 in 2012.

There were 4068 companies that had foreign partners or foreign investors who held shares of less than 50 percent and 13,615 companies with a foreign director who has authority to sign or co-sign on behalf of the company, he said.

The Department of Business Development had assessed the Phuket database in January. Officers from Bangkok would be on Phuket in February to help carry out the detailed investigation, he said.

Comments

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Is this the new hype topic...after the land issues have disappeared...!?

Posted by Peter on February 2, 2013 18:56

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If in doubt - the xenophobes will out!!! Lets not look at the real problem of Thai businesses ripping people off; we'll do the usual deflection and find out that the businesses investigated are more than likely to be legal (but forced to shut down or face further intimidation any way), which is more than can be said for the mob mentality which has kickstarted this investigation in the first place.

Posted by Mister Ree on February 2, 2013 20:16

Editor Comment:

''One law for all'' is probably a reasonable place to start, Mister Ree, unless xenophobia has a grip on you.

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The Thai government will have a lot of work with all foreigners who work illegally or with a work permit by setting up Thai companies with Thai proxy nominees such as directors, partners and employees and by not paying the 2M Baht to cover the asset of their companies .... Hahaha ... Game over for some ...

Posted by Whistle-Blower on February 2, 2013 23:08

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I wonder the view they will take on foreigners, with Thai wife's and children, whom have to set up companies to get Work Permits so they can work 'legally' and pay tax to support their families?

Hahaha as you put it Whistle-Blower, but some have families, real families, and have no other choice but to create their own companies to put food on the table and keep the family together, as opposed to pops being and working 5000 miles, seeing his kids 1 month a year.

What is your take on this Whistle-Blower since you always have so much to say?

P.S maybe I am one of these, or maybe im NOT one of these FYI... :)

Posted by Sean on February 3, 2013 09:09

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@Sean
Thailand is not againsgt foreigners to invest in the country but what Thailand want is the foreigners to be be partners with Thai businesspeople who control the companies through thai directors and Thai shareholders and enough Thai staffs per work-permit according to regulations depending of each industry.
also the foreigners are supposed to provide training to Thai people.
Today, it is a real mess in Thailand as most of foreigners are selfish and are looking to compete against local Thai people by using bribes to get legal documents with forgery documents about Thai shareholders and ghost Thai staffs in order to get issued a work-permit and stay in Thailand all year round without forgetting that those foreigners do not provide the 2M Baht assets to cover bankrupcy.

Posted by Whistle-Blower on February 3, 2013 10:47

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Does that "one law for all" include road blockades, taxi 'turf', and forcing the police to shut down legitimate legal competition.

Posted by Livinlos on February 3, 2013 12:52

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@Whistle-Blower
That didn't really answer my question.

Posted by Sean on February 3, 2013 14:33

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Message for whistle blower. who are you? you come on to these forums pretending you know everything with your snidey comments about all topics. i think you are some sad old fellas probably retired with nothing better else to do. why dont you get a real life? or shall i say why dont you go back to your straight as a dye exsistance where you always aim in the centre and never step out of place.

Posted by yozza on February 3, 2013 15:47

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The Diving industry really needs to be looked at a lot closer. The majority of people who congregate at Chalong pier in the morning either don't have a work permit or it is obtained illegally.(and these are the same people who like to come across high and mighty proud of the fact that they have a WP) I fact I would say that 96% of freelance divers that have a work permit do not meet the criteria. I worked in the industry myself i know how easy it is to obtain a work permit without having any Thai staff, office, or assets etc. Just because someone is married to a Thai and has a child this does not mean that they should get any special treatment. Agree with the Ed on this "One law for all" but surely the labour office needs to take some of the blame.
Since leaving the wonderful diving community I have set up my own business and yes I do have the required staff, office, assets etc, and let me tell you it is a lot more complex than paying 20,000 baht out and 5,000 baht a month for looking after it.

Posted by GazB on February 4, 2013 08:44

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I dont think your question requires an answer Sean...

These rules and laws have been in place for longer then any current father with minor, part Thai Child... The fathers in question should have given a bit more thought to how they intend to support their children..

Its not up to Thailand to change the laws to suit foreigners who think the world revolves around them.

Posted by Joel M on February 4, 2013 10:40

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The current situation in the diving industry is actually the consequence of the Thai Law on foreign partners and employees which is not adapted to small structures such as dive centres.
Thai people rarely dive, and finding Thai instructors who can teach in foreign languages is very hard.
Dive centres have to hire lot of foreign instructors but need few (Thai) staff for their daily operation. So they are incapable of providing their instructors with work permits.
Foreign instructors, who want to abide by the law and work legally find themselves in a strange situation where they have to set up "fake legal" companies in order to get real work permits.
But are they really the only ones to blame ?
Who is setting up these real fake companies and finding these real fake Thai partners and staff for them ?
It is Thai lawyers and accountants, profiting of this HUGE business !!!
It is a very lucrative market and a lot of Thais (professionals and officials) are profiting from it. The article mentions 13,615 foreign directors... you can simply do the maths !

I am not pointing fingers at anyone. I am merely observing why we are now in this situation.
I don't think any foreign worker is happy to go through the hassles of setting up a company and paying the very high fees that come with it in order to ensure a work permit.

Posted by Lucien on February 4, 2013 11:38

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Isn't Thailand a capitalist society?
Why is free competition being outlawed?
What rules are being broken?
Guess what?
I refuse to holiday in Phuket because of the mafia run tuk tuk gangs.
When I go into a Thai restaurant in the UK it is invariably being run by Thais - do I care?
Not at all!
But I do care about paying 1st word prices in a 3rd world country and so do the Russians .let the Russians and all the other nationalities are have a fair go at providing services on an unlevel playing field

Good luck to all - let capitalism prevail!

Posted by Chris on February 13, 2013 15:02


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