Prime Minister Paetongtarn Shinawatra on Tuesday challenged the opposition to submit a complaint to the Revenue Department if it wants an investigation into whether she avoided paying inheritance tax worth 218.7 million baht.
Ms Paetongtarn told an army of reporters outside parliament that she was not concerned about the opposition’s plan to submit a complaint to the tax agency and seek an ethics investigation.
“Go ahead and follow the process so that everything becomes clear,” she said. “As for myself, I have always adhered to all the rules and regulations. Any scrutiny is welcome. I entered politics knowing that I would be subject to investigations.”
On Monday, People’s Party MP Wiroj Lakkhanaadisorn accused Ms Paetongtarn of avoiding inheritance tax worth 218.7 million baht by accepting shares worth 4.43 billion baht in many companies from family members.
Promissory notes were issued for payment, but Mr Wiroj asked why they did not specify a repayment date and were interest-free.
Pinsai Suraswadi, the Revenue Department director-general, said on Tuesday that the Civil and Commercial Code allows promissory notes to specify a repayment period and may or may not include an interest rate.
However, if interest is charged, it must be clearly stated on the note.
Regarding the sale of shares outside the stock market, the seller is responsible for paying taxes. In the case of personal income tax, income is recognised only when an actual cash payment is made, said Mr Pinsai.
If shares are sold using promissory notes, tax must be paid when the note is paid in cash. In this case, it is known that Ms Paetongtarn will make a cash payment in 2026, meaning the recipient must include this income in their 2026 tax calculation when filing a return in 2027.
The tax is not counted from the moment the promissory note is received.
For personal income tax on share sales outside the market, this type of income falls under Category 4 which is subject to withholding tax at a progressive rate and must also be included in the taxpayer’s overall progressive income tax calculation.
Mr Pinsai emphasised that these tax rules have been in effect since before 1987. The department has consistently applied the cash principle in all cases, he added.
Mr Wiroj responded by saying that the public is waiting for more clarification from the premier regarding the note and next year’s tax payment.
The Revenue Department must clarify if such transactions are common in business, as claimed by the premier, and if they are legal for anonymous dealings.
He said he plans to formally submit the issue with the Revenue Department for clarification soon.
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