(Not) Taxing the crown

14 02 2021

One of the points of the announcement that he king was taking full and formal control of all crown wealth was that he’d pay tax. In its “explanation” of the secretly legislated changes the king had the junta make in 2017, it is stated:

Regarding the liability for duties and taxation, the Crown Property Act, BE 2560 (2017) stipulates that matters related to either liability for, or exemption from, duties and taxation shall be determined and regulated by the specific legislations covering the relevant types or duties and taxes. Such provisions differ from those under the previous statute which exempted the Crown Property Bureau completely from all types or duties and taxes. In implementing the new Statute, His Majesty made the decision to make the “Crown Property Assets” be subject to the same duties and taxation as would assets belonging to any other citizen Therefore, if the assets were to remain in the name of the Office of the Crown Property Bureau, they would have retained the exempted status under the current taxation laws since the Office of the Crown Property Bureau is designated – still, as an entity exempted from duties and taxation. “Crown Property Assets” are now given a status on par with that of any other legal person. The removal of exempted status was accomplished in line with His Majesty’s Wishes.

Like much that emanates from the palace, there seems clarity in this but there’s also plenty of ambiguity if the details are dissected. Of course, the question of whether the king actually pays taxes is opaque and one of the reasons why protesters have been calling for reform.

In a recent discussion at Prachatai, and attempt is made to cut through the secrecy, smoke, and mirrors. The result is an enlightening article, well worth reading, but the result is that the taxpaying public still doesn’t know if the king pays tax, on what, and how much. The report makes this statement:

the Crown Property Bureau still has not disclosed its annual report on its website, as was previously done during King Rama IX’s reign, so we do not have any information on the income of the Crown Property Bureau, especially on the transfer of real estate which used to be crown property and public property to become the property of King Rama X to be administrated, preserved, managed, and operated all at the King’s discretion.

That’s only partly true. There was an annual report for a few short years, but it contained no financial information. Now, however, the reporting on the CPB is missing but the financial information has always been kept a secret.

With regard to the billions of baht of taxpayer funds shoveled into the royal family and palace – some detailed by Prachatai – again, there’s no clarity on the taxation status.

For real estate, the report states that the 2019 Land and Building Tax Act sets a “rate of 0.01-3% of the estimate property value, depending on the category of land/building.” However, a Ministerial Regulation on Property Exempted from Land and Building Tax in 2019 exempted crown property and the property of members of the royal family for the following purposes:

(a) for use in governmental affairs, royal affairs or any royal agencies

(b) for use in any other affairs of the King and royal family members or for public benefit

(c) for use as a religious place of any religion to perform religious activities or public activities or as the residence of monks, priests or clergymen of any religion, or as a shrine.

The Prachatai assessment concludes:

The information given here cover only the facts and laws that are common knowledge, and the interpretation is based on the author’s understanding. It is difficult to confirm whether tax is collected as interpreted in this article or not. Ever since the changes in the administration of the Royal Offices and crown property there has been no clear explanation on the newly amended laws, and details about the crown property are not disclosed to the public. These questions therefore remain in society, as long as the people do not have access to sufficient information to answer them.

In other words, the king’s personal grab of crown property was propagandized as him paying tax. The result is less clarity than ever.


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