Разоблачена банда, занимавшаяся мошенничеством с НДС на миллиард бат

The Revenue Department and the Central Investigation Bureau (CIB) have dismantled a sprawling value-added tax (VAT) fraud network, allegedly responsible for over 1 billion baht in state losses.

On June 26, coordinated raids were carried out across 14 locations in Tak, Chiang Mai and Bangkok. The operation led to the arrest of 63 year old Samran Naowarat and nine associates accused of orchestrating the elaborate scheme.

Police Major General Thatphum Jaruprat, commander of the Economic Crime Division (ECD), said the crackdown followed intelligence received from the Revenue Department about Samrans company, S&M Brotherhood General Trading Co Ltd.

According to investigators, Samran registered 20 VAT-registered companies under the names of family members, friends and employees. These shell entities were used to generate fictitious transactions, inflating the value of goods and the 7% VAT, despite no real trade taking place.

Officers allege S&M Brotherhood then purchased these overpriced goods on paper for export to Myanmar, creating bogus export documents to support VAT refund claims. Because the goods, mainly consumer products, were exempt from export duties and VAT, the group could legally claim large refunds based on inflated purchase tax amounts.

Pol. Maj. Gen. Thatphum said the suspects exploited the loophole by repeatedly creating fake sales to support their claims. Between 2021 and 2022 alone, the network reportedly pocketed over 150 million baht in VAT refunds, with the total losses to the state exceeding 1 billion baht.

During the raids, officers seized more than 100,000 documents, 20 mobile phones, and 30 computers and electronic devices believed to be evidence of the fraud.

Charges filed against the suspects include the illegal issuance of tax invoices, attempted VAT evasion, using forged invoices for tax credits and filing false claims, reported Bangkok Post.

The group has been transferred to the ECD for legal proceedings.

Police warned other businesses to avoid similar practices and urged the public to report any suspicious VAT refund activity. The investigation is ongoing, with officials examining whether further accomplices or companies were involved in the scam.