Potjaman wins tax appeal
Court doubts evidence in Shin evasion case
The Appeals Court yesterday overturned a lower court's verdict against Khunying Potjaman na Pombejra, former wife of deposed prime minister Thaksin Shinawatra, clearing her of all charges relating to a tax evasion scandal.
Khunying Potjaman na Pombejra, the former wife of deposed prime minister Thaksin Shinawatra, arrives with her three children to hear the Appeal Court’s verdict in her tax evasion case. SURAPOL PROMSAKA NA SAKOLNAKORNThe transfer of shares in Shinawatra Computer and Communications, now Shin Corp, took place on Nov 7, 1997. It was investigated by an anti-graft agency, but never came to the public's attention until the coup-appointed Asset Scrutiny Committee decided to pursue charges.
The Criminal Court handed down a three-year jail term to Khunying Potjaman and Mr Bannapot for conspiracy to evade taxes and giving false statements to authorities. Her close aide, Kanchanapa Honghern, was also found guilty and given a two-year prison term.
The defendants argued against the Criminal Court's verdict on seven points. The Appeals Court found two points in their favour.
In its review, the Appeals Court said that there was no substantial evidence to prove that Khunying Potjaman and Ms Kanchanapa had assisted Mr Bannapot in evading taxes.
It acquitted Khunying Potjaman and her aide of the charges, citing the benefit of the doubt.
According to the Appeals Court, the transaction between Khunying Potjaman and her step-brother was deemed straightforward. The prosecution was convinced that there was no actual transaction.
It alleged that Khunying Potjaman paid for the shares for her brother and received the money back later from her nominee, Duangta Vongpakdi, the Shinawatra family maid, while Mr Bannapot did not pay tax on the shares.
"The plaintiff's evidence is weak, lending doubt as to whether the two defendants conspired to commit wrongdoing. The defendants should be given the benefit of the doubt," said the court.
The three-year jail term handed down by the Criminal Court was also dismissed.
But, the Appeals Court upheld a guilty verdict against Mr Bannapot for tax evasion. It reduced the jail term from three years to two years and fined him 100,000 baht.
The leniency was based on Mr Bannapot's lack of a prior criminal record and philanthropic endeavours.
"The three-year sentence is deemed appropriate. But the Appeals Court believes the prison term is a measure to boost efficiency of tax collection," the court wrote. "The first defendant [Mr Bannapot] is only a businessman, not a political office holder and he has no criminal record. He also made social contributions by donating large amounts of money to the Thaicom Foundation to support the education of underprivileged children."
Thaicom Foundation was founded in 1993 by Thaksin as a non-profit organisation. It contributed about 300 million baht between 1994 and 2004 to provide technological support to help the government initiate satellite education programmes for children in remote areas.
The Appeals Court also dismissed the charges against the two of giving false statements to authorities, citing a lack of evidence.
After hearing the verdict, Khunying Potjaman and the two defendants left the court without speaking to the press.
Khunying Potjaman smiled and said "Thank you" as she walked past reporters. She was accompanied by her children _ Panthongtae, Pinthongta and Paethongtan.
Metha Thammawiharn, Mr Bannapot's lawyer, said he would first have to study the ruling thoroughly before deciding whether to proceed with an appeal.
Weerapat Srichaiya, Khunying Potjaman's counsel, said that he was not satisfied with the verdict.
"The acquittal is for two people. In our appeal, we sought acquittal for three," he said.
He noted that Mr Bannapot had not been required to pay tax because the Revenue Department's probe was illegitimate.
He added that the probe had exceeded the statutory limit of five years.
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