Commerce and Tax Agencies Target Nominee Businesses With Data Sharing

Thailand's Department of Business Development and the Revenue Department have launched a collaborative initiative to combat illegal business practices, particularly the use of Thai nationals as nominee shareholders for foreign investors. On July 1, officials from both agencies met to discuss improving business services and strengthening enforcement against unlawful activities. The two departments have integrated their databases—covering business registration, shareholder details, financial statements, and VAT records—to create a comprehensive system for identifying high-risk entities. Given the widespread use of Thai nominees by foreign investors and the sophisticated tactics employed by both Thai and foreign criminals posing as legitimate business operators, the agencies are implementing strict law enforcement measures. They have identified five categories of high-risk businesses for immediate investigation: businesses with tax payment irregularities, entities with unverified addresses, partnerships and foreign corporations failing to file financial reports, VAT-registered entities, and those with suspicious shareholding structures. The Department of Business Development will analyze this data and coordinate with partner agencies to conduct thorough inspections and enforce regulations strictly. Officials stated the initiative aims to improve services while delivering concrete results in preventing illegal business activities and stopping foreign nationals from using Thai nominees to circumvent business restrictions, protecting Thailand's economy and attracting legitimate investors.