Quote:
Originally Posted by LivinLOS
Dangerous comments..
Foreign investors holding property through shell companies using Thai nominees have been warned to restructure their holdings or face prosecution.
"Foreigners using shell companies to buy housing across the country are violating two laws. One, the Land Act that forbids foreigners from holding land and two, the Foreign Business Act by using nominee structures. I recommend that they restructure," Commerce Minister Krirk-krai Jirapaet told foreign journalists at a dinner talk on Friday.It is expected that among those to be hurt the most by the new rules will be companies selling villas to foreign buyers, as any foreigner will need to set up a company with at least a 51% Thai shareholding. To comply with the amendments, companies will need to change from freehold to leasehold contracts.
Market experts believe the villa-for-sale market in resort destinations will suffer as a result.
Mr Krirk-krai also said that the government would likely look at ways to plug the loopholes under which companies use Non Voting Depository Receipts (NVDRs) to circumvent FBA-mandated restrictions on foreign ownership.
"I will make sure that over the next three or four months we will plug this loophole," he said.
Mr Krirk-krai said the military-installed government was in a rush to resolve this issue because abuse of the laws was a key reason for the fall of the previous government.
"It's not that we are backtracking from globalisation and not welcoming foreign investors, but what we want is good quality investors, not just any investors .......!!!!!!!!!," he said.
"If the investors cannot observe one or two laws that are similar to those in other civilised countries, then we should not care about them."
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Worrying stuff indeed LiL - did not think they would go this far - will see if get wider ministeral backing and sure there will be lobby (building industry) to fight this level of change - but certainly should be watched for further developments.