by Mr. Ponthep Werachon

WERACHON LAW OFFICE : 315/304, Moo 12 Theppasit Road (Soi 12) Nongprue,Banglamung, Pattaya City Chonburi 20260

Kingdom of Thailand Tel: (038) 304 084, (038) 251 533, Fax: (038) 304 027 Mobile: 081 423 4255, 089 889 6483, Website:  www.thaisolicitor.com,  e-mail: thai@werachonlawyers.com

We wrote this article many years ago about the letter dated May 15, 2006, of the Ministry of Interior which created panic for many foreign property buyers in Pattaya. Some of them bartered their last castles for the horses.
In 2012, we can prove that the government is understanding and tolerant with all foreigners. The destiny of Pattaya city always depends upon rumor mongers who even said that Thai laws can be changed overnight to expropriate land from foreigners. The laws and regulations should not be retroactive to existing companies already owning land before this letter. If the government deems these existing companies violate the restriction under the Land Code, these companies will be legally forced to sell the land in question. All monies from the sale will be returned to these foreigners.
Under the Thai Constitution, nobody can be deprived of their property without fair compensation. If the government implements such a draconian policy, it will be the apocalypse not only for foreigners but also for many Thais residing in Pattaya.
As we say, the exception proves the rule. The letter dated May 15, 2006, is applicable only to new companies with foreign shareholders who apply for land ownership. These companies will have to prove that all Thai shareholders are not only nominees. Acting as a nominee for a foreigner to own land is punishable under Section 113. of  the Land Code (1954). The land registrar will investigate the financial status of all Thai shareholders. Some foreigners see the loophole to set up companies with 100 percent Thai nominees. The Land Office may overlook these companies and not investigate Thai shareholders. Some Thai nominees will afterwards transfer shares and directorship back to foreigners.
However, once they apply with the Commercial Registration Office in Chonburi to change the shareholders from Thais to foreigners, all Thai shareholders may be investigated by the Ministry of Commerce about the source of funds. Form August 15, 2006, all Thai shareholders in companies with foreign directors or shareholders of at least 40 percent will have to show bank statements from the previous six months to prove that they have enough money to buy shares.
The investigation of the Ministry of Commerce is separate from the Land Office. It is a real Double Jeopardy or Dilemma!
Foreigners not affected by this Double Legal Jeopardy are those having no suspicious minds who buy properties under the name of their Thai spouses or partners. They may seek proper legal protection by many legal mechanisms not to be worried from the old saying “Hell hath no fury like a woman scorned”.
On July 21, 2006, the Ministry of Interior circulated once again the letter to all provincial governors instructing land offices under their jurisdictions to follow the practical guidance for their investigations. We will read this letter together to find out the appropriate solutions.

VERY URGENT Ministry of Interior

No. Mor.Thor. 0515/Vor Asdang Road, Bangkok 10200

July 21, 2006

Subject: Acquisition of Land by Juristic Persons with Foreign Shareholders
Attention: All Provincial Governors
Reference: Letter of the Ministry of Interior, Very Urgent No. Mor.Thor.0515/Vor.1562 dated 15th May 2006
Enclosure: 3 sets of specimen Investigation Report
The reference is made to the practical guidance of the Ministry of Interior in relation to acquisition of land by limited companies, limited partnerships or registered partnerships (except public limited companies or juristic persons permitted to acquire land under other laws) having objectives to engage in real estate business and having foreign shareholders or directors, or there is a reason to believe that Thai nationals hold shares on behalf of foreigners whereby all Thai shareholders must be investigated about their incomes.
The Ministry of Interior deems appropriate to set forth the standard practice in order that all investigations will be conducted in the same way with the following additional practical guidance :-

1)The practical guidance in the letter referred above shall be applicable to juristic persons (companies and partnerships) applying for acquisition of land with the objective to carry on a real estate business, i.e., buy, sale, rent of land, operation of hotel and resort.
2)The evidence for the investigation of each Thai shareholder on the occupation and monthly income will be a letter from a working entity certifying a position with employment period and monthly salary or other reliable evidence. The investigation will be furthermore on the source of money for the shareholder tobuy shares which may come from savings, sale of land, inheritance or loan by showing the evidence, e.g., bank book, agreement to sell the land, evidence showing the inheritance or loan.
3)In case any shareholder is a juristic person with a Thai nationality (even the aforesaid juristic person has not any foreign shareholder or director), the investigation must be made on the source of money to buy shares by investigating the representative of the juristic person to ascertain the source of money by showing evidence which is a balance sheet. If the money to buy shares was borrowed from other person, the evidence being a loan agreement and minutes of meeting involved with the aforesaid matter must be produced.
4)In case a juristic person purchases the land with the price higher than theregistered capital, for instance, the company has the registered capital of 500,000 baht but the company purchase the land for the price of 10,000,000 baht without mortgage, the investigation must be made to ascertain the source of money by showing the evidence. If the money was borrowed, minutes of meeting involved with the aforesaid matter with a loan agreement and the following related documents will be required :-
4.1)If the loan is from a foreigner or foreign juristic person, the evidence showing the source of money, e.g., the evidence showing that the money is remitted from overseas or withdrawal slip of money from a bank account with minutes of meeting of the juristic person who is the lender.
4.2)If the loan is from a Thai individual or juristic person (even the aforesaid juristic person has not any foreign shareholder or director), the evidence proving the source of money, e.g., balance sheet, withdrawal slip of money from bank account with minutes of meeting of the juristic person who is the lender must be produced.
You are hereby informed for your further compliance with the specimen of investigation report for your practice.

Sincerely yours,

Mr. Suraat Thongniramol
Deputy Permanent Secretary of Ministry of Interior
Chief of Internal Security Group

by Mr. Ponthep Werachon
Thai Solicitor
Mrs.Darunee Werachon
Thai Solicitor & Accountant

WERACHON LAW OFFICE : 315/304, Moo 12 Theppasit Road (Soi 12) Nongprue,Banglamung, Pattaya City Chonburi 20260

Kingdom of Thailand Tel: (038) 304 084, (038) 251 533, Fax: (038) 304 027 Mobile: 081 423 4255, 089 889 6483, Website:  www.thaisolicitor.com,  e-mail: thai@werachonlawyers.com

It is undeniable that the booming economy and well being of Pattaya is attributed to any foreigners who blindly buy properties for their Thai girlfriends. Who will care about their destiny? Life is not a fairy tale to see a young prince and his fair lady live happily in a castle.
In Pattaya, truth is always stranger than fiction. Most foreigners expect only the closed answer from their lawyer, “No problem sir! Your life in Pattaya will be like a rose in the English hill”.
“A rosy life” is what many foreigners expect. These dreaming foreigners invest all their hard-earned money to make their dreams come true.
This article is for foreigners whose dream becomes a nightmare. We have some clients who fell in love with bimbos. “No money, no honey.” They were asked by their girlfriends to prove their sincerity by buying property for them.
“Send money my bank, I take care house, no problem,” is what the bimbo may ask her man by her simplified broken English which is always workable. The closed answer of her man will be, “Yes, Honey, I’ll take care you same same you take care me”.
The processes are done by consultants who always laugh every time the bimbos call their men “Kwai”–which is a beautiful nickname for many foreigners in Pattaya.
“You’re farang. The land cannot be put in your name,” foreign buyers are always told by consultants.
We have a real story of a retired Swiss man who divorced from his intolerant Swiss wife and started his new life by buying a house to live with his new Thai girlfriend. He went back to Switzerland to sell his properties and sent all his money to his Thai girlfriend. She, in turn, arranged for the house to be put in her name. The Swiss man returned to Pattaya to live in the house he bought for her.
Most readers may have already know the end of this story once the hell hath no fury more than his girlfriend scorned. “Get out my house with your golf bag!”
Can this broken-hearted man sue his Thai girlfriend to return his property?
The answer can be either “Yes” or “No” depending upon what he can prove in court. The main fact is that he bought that property with his money but put the ownership of the land in the name of his girlfriend as a nominee.
Under Section 96 of the Land Code, any Thai national acting as a nominee to own a piece of land on behalf of a foreigner will be legally forced to sell the land within one year. The Thai nominee can be punished under Section 267 of the Penal Code of Thailand for making a false statement in a public document with maximum imprisonment of three years. For more details search the article “The Nominee” in our readingroom: www.thaisolicitor.com.
There was one case in Pattaya in which a foreigner sued his scorning Thai lady who owned the land on his behalf. The judgment was made February 28, 2007 in favor of the foreigner to dissolve the ownership of the land held by the Thai lady. The governor of Chonburi province issued the letter dated October 11, 2007 instructing the registrar of the Pattaya Land Office to force the Thai lady to sell the land and to take legal action against the lady for violating Section 267 of the Penal Code. If you want to read the complete version of the case, please contact us by e-mail.
A foreigner who sues a Thai nominee will be entitled to the money from the sale of land.
In the judicial system, justice is based upon the facts. The judge is just a human being not omniscient like “God”. You will have to seek the facts on your own and you will find the truth which shall set you free.
His girlfriend may argue that he gave the property to her for the passionate gift without expecting anything in return. What you expect from her is only “love”. It is not fraud or ingratitude if she showed to him afterwards that she never loved him from day one.
It is not similar to the case that you put the ownership of land in the name of the person having no passionate relationship with you whom you can easily prove that person is the“nominee”, for example, driver or maid who just only lent you a name and has never kept the land title document (Cha Nod).
Another way the Thai lady may argue is that she had the “co-ownership” of the land with you. In this case, you may go Dutch with her to share 50 percent of money from selling the land. The Land Code of Thailand prohibits foreigners only from the ownership of land or freehold right, not the right to share the money or proceeds from the sale of land. You may search for the English version of the Land Code on Foreign Ownership in our reading room www.thaisolicitor.com.
If you prefer to buy the property by putting the ownership in the name of your Thai lady instead of a company, it is advisable to follow the following guidance:
1) Send the money from your bank account in your country to your bank account in Thailand and withdraw to make payment by a cashier’s cheque. You should keep the bank statement and money transfer slips to show the transactions that all money comes from your pocket.
2) Deal with a real Thai lawyer or “Tanai Kwam” who is independent and can serve you as only one master to protect your best interest without any conflict of interest or conspiracy of silence. The independent lawyer should not sit under the same roof with the broker or seller and should be able to directly communicate with you in English.
3) Sign the contract to buy the property by yourself. Never believe anybody who says that a foreigner cannot sign a contract to buy a land.
4) Register a mortgage with the Land Office clearly stipulating that your Thai girlfriend has borrowed funds from you.
5) Retain the original land title deed (Cha Nod) and house register book (Tabien Baan) in a safe.
6) Prepare a last will and testament for your Thai girlfriend to sign bequeathing the land and house to you in the event that her death precedes yours.
The happiness still requires many factors. Please seek by yourself and you shall find.

by Mr. Ponthep Werachon

WERACHON LAW OFFICE : 315/304, Moo 12 Theppasit Road (Soi 12) Nongprue,Banglamung, Pattaya City Chonburi 20260

Kingdom of Thailand Tel: (038) 304 084, (038) 251 533, Fax: (038) 304 027 Mobile: 081 423 4255, 089 889 6483, Website:  www.thaisolicitor.com,  e-mail: thai@werachonlawyers.com

1. Verifying the legal method or devise to register the ownership of land and building to select the most appropriate legal method if the ownership should be registered under either Thai company or Thai spouse or Thai nominal owner.
If you want to set up a Thai private company to run business, the land can be registered as the asset of the company and the money you paid for the piece of land can be recorded for capitalization.
The company eligible to ownership of land must have Thai majority shareholders of at least 51% whereby a foreigner will be a minority shareholder of only 49%. A Thai limited company is controlled by a majority vote of shareholders, generally one share for one vote. The director can be removed by a majority vote.
There are many legal mechanisms to protect the minority shareholders by using the special articles of incorporation (by-laws) setting forth the special regulations to control the transfer of shares to outsiders which must be first approved by the board of directors. You may also mention the minority foreign shareholders can have double votes by classification of shares of one share for two votes or the minority foreign shareholders can have preferential shares. There are many tailor-made by-laws to serve your purpose.
Having Thai nominee shareholders is illegal. However, there are many foreigners having the majority Thai shareholders who are only nominee shareholders are always asked to sign the blank share transfer deed. Thai nominal shareholders should not be a consultant or even lawyer because it is a conflict of interest. All the corporate documents should be clearly understandable with complete English translation. The share certificates should be endorsed by the nominees. Their signatures should be made in your presence. Their identity should be also verified. The transfer of shares requires at least two witnesses. You should be able to prove the identity of these witnesses. You will keep the share transfer deed with photocopies of all shareholders and witnesses, pledge of share agreement and share certificates of all nominee shareholders.
In many situations, only blank share transfer deed is not really effective to control the nominee shareholders. There are many legal booby traps that you do not understand. The companies whose majority of shares held by Thai nominee must have the complete documents, for example, share certificates, share register book, minutes of meeting etc. These documents should be translated in English for your understanding. It is advisable to avoid this method if it is not necessary.
Some foreigners lend money to Thai shareholders to buy 51% shares in the Company and the latter pledge their shares as the security for the loan. The foreign shareholders may keep the share certificates which are pledged to them. The pledge of share agreement should be signed with all supporting documents including share transfer deed. It can be a problem for many lenders who have only the agreement signed by the borrower. But the lender has no document to prove that the borrower really received the money. There should be a bank slip showing that money has been transferred into the account of the borrower. It is a matter of fact which must be proved.
In Thailand, there is no special status for holding or dormant companies. All companies must prepare the financial statements (balance sheet) at the end of the year and file with the authorities. If the companies remain dormant for certain period of time, it can be probably inspected by the tax authorities on random basis. Therefore, there should be a movement in your company.
2. Ascertaining the appropriate tax structure for the company. All tax compliance must be clear by the monthly or yearly chart. You should discuss with a Thai Certified Public Accountant (CPA) who will audit your financial statements at the end of the year.
3. Justifying the transaction for transfer of money from aboard to meet the requirement of the Anti Money Laundering Office (AMLO). Any suspicious transaction can be inspected anytime.
4. Designing the legal structure and drafting contracts to safeguard the buyer. The tax structure should be verified and discussed with the owner to clarify that you will not be responsible for the Income Tax of the seller which must be withheld by the land office, and also Specific Business Tax (SBT) which must be absorbed by the seller. These taxes are based on the actual price.
The tax you will negotiate will be only transfer fee and stamp duties which are 2.5 % of the official appraised value. It can be jointly absorbed according to the negotiation. In addition, once the seller agrees to absorb for withholding tax and specific business tax, the seller will put the selling price very low to avoid the tax burden. Even it will not effect the transfer fees and stamp duties which are on fixed official price, it will cause “Capital Gains” once you sell the land in the future.
5. Verifying the ownership of the land and authenticity of title documents, i.e., land title deed (CHANOD) or (NOR SOR 3 KOR), the restrictions, lien or encumbrance on the land and identification of the owner. Some land is subject to the encumbrance, e.g., 30 year-lease, mortgage or attachment by court. There are many people paying deposit for the fake title deed.
6. Verifying the location and area of the land by official or private surveyor to check the proper location and landmarks. It is always problematic for the empty plot of land whereby the plot shown to you is not the plot which is later transferred to you. If you buy an empty plot of land, you should check the zoning law to verify if there is a restriction on the construction. In addition, you may also check if your land and house is the area under the eminent domain law.
7. Drafting the Contract for Purchase and Sale with Deposit to be signed with the owner before the payment is made by a bank draft not cash. The bank draft should payable only to the owner whose name appears in the land title deed or director of the Company who owns the land. If they do not accept this kind of payment, you may have the presumption that they are not decent persons with whom you may deal.

8. Designing the transaction for transfer of money and controlling the remittance to comply with the regulations of the Anti Money Laundering Office (AMLO) and compiling the remittance documents (THOR.TOR.3).
9. Ensuring that the registration with the Land Office is legally complied with the proper transaction and the name of your company or Thai spouse has been properly recorded as the new owner.
10. Finding a qualified Thai lawyer and accountant who may explain to you on the specific issue. These persons should be able to professionally serve as the one master without any conflicts of  interest.

by Mr. Ponthep Werachon

WERACHON LAW OFFICE : 315/304, Moo 12 Theppasit Road (Soi 12) Nongprue,Banglamung, Pattaya City Chonburi 20260

Kingdom of Thailand Tel: (038) 304 084, (038) 251 533, Fax: (038) 304 027 Mobile: 081 423 4255, 089 889 6483, Website:  www.thaisolicitor.com,  e-mail: thai@werachonlawyers.com

There always are rumors about the government policies which may affect foreigners.  We observe that the policy about the foreign ownership is still intact without any xenophobic sentiment from the authorities. Five years ago, we were invited by the Thai Real Estate Business School www.trebs.co.th  to be a guest speaker at an exclusive seminar in English on the topic “How can Foreigners legally occupy properties in Thailand?” Participants at that Bangkok seminar were mainly local and international real estate entrepreneurs from Bangkok, Pattaya, Rayong, Chaingmai, Phuket and Samui. Our concept for all forums we join is to speak the truth without any “Conspiracy of Silence”.
Dr. Sophon Pornchokechai, MRICS, chairman of the Thai Appraisal Foundation, discussed the real estate outlook for Thailand. His Power Point presentation was comprehensible by his pedagogical talent to make lay persons to be knowledgeable in real estate insider information which is indispensable for business decision making. For more details, you may search in www.area.co.th. This guru took exactly 45 minutes for his great presentation.
One of the highlight issues in the seminar “Current Possibilities on How to Occupy Properties in Thailand” was enlighten by a top-gun Thai lawyer working in the international level, Mr. Suriyong Tungsuwan, Partner of Baker & McKenzie Co.,Ltd. His power point presentation was well organized on the issues, Restriction on Foreign Ownership of Land, Exemption from Foreign Ownership Restrictions, Land Holding Company and Alternatives to Foreign Ownership.
The controversial issue was “Quasi-Legal Land Occupation in Resort Destination” by Mr. Ponthep Werachon, a Pattaya lawyer who could be blamed for finding the loophole of the law. The word “Quasi” comes from Latin which means “seemingly, apparently but not really”. This issue was entertained by a metaphysical approach to ascertain the truth about the rights of foreigners which are equal to local people except there is a restriction by laws. The main restriction is “ownership of land” which is equal to “freehold right”. Therefore, the occupation right which is different from the ownership right can be enjoyed by foreigners.
The main speaker of that day was Mr. Sutisak Laohachewin, Deputy Director General, Department of Business Development who deal with the most controversial issue on the Foreign Business Act (1999) and the Amendment.
With his perfect English in a received pronunciation, all participants could enjoy the first hand information from the high ranging figure. Every issue was precisely explained. Nothing was lost in translation.
After his presentation about 45 minutes, all participants were stimulated to raise questions or comments which were spontaneous. Many foreigners raised their indignation about this xenophobic policy that they would lose half of their properties. The Deputy Director General insisted that the issue on foreign ownership of land must was the separated issue which would be dealt by the Director General of the Land Department, Ministry of Interior. The atmosphere was quite open and democratic. The Deputy Director General was with us until the last question.
In the afternoon was the panel discussion by Dr. Sophon Pornchokechai, Professor Pornthep  Sri Narula, a guru who could explain delicate issue in a layman language. The other panels were Mr. Simon Landy, Real  Estate  Consultant and other gentleman from Asian Institute of Technology (AIT).

The meeting was until 4 p.m. whereby all participants were empowered by the knowledge. We hope that this great meeting can be organized in Pattaya. If you have the same idea, please contact : training@trebs.co.th.

by Mr. Ponthep Werachon
Thai Solicitor
Mrs.Darunee Werachon
Thai Solicitor & Accountant

WERACHON LAW OFFICE : 315/304, Moo 12 Theppasit Road (Soi 12) Nongprue,Banglamung, Pattaya City Chonburi 20260

Kingdom of Thailand Tel: (038) 304 084, (038) 251 533, Fax: (038) 304 027 Mobile: 081 423 4255, 089 889 6483, Website:  www.thaisolicitor.com,  e-mail: thai@werachonlawyers.com

Buying property with your hard earned money is always the important decision which may lead you to happiness or misery. You may become gullible in this land if you receive only misleading information. As we always say “ignorance” is the state of lacking knowledge. It never means that you are stupid but receiving only misleading information.
You should verify the legal method to register the ownership of land and building to select the most appropriate legal method if the ownership should be registered under either Thai company or Thai spouse or Thai nominal owner.
If you want to set up a Thai private company to run business, the land can be registered as the asset of the company and the money you paid for the land can be recorded for capitalization.
The company eligible to own land must have Thai majority shareholders of at least 51% whereby a foreigner will be a minority shareholder of only 49%. A Thai limited company is controlled by a majority vote of shareholders generally one share for one vote. The director can be removed by a majority vote.
There are many legal mechanisms to protect the minority shareholders by using the special articles of incorporation (by-laws) setting forth the special regulations to control the transfer of shares to outsiders which must be first approved by the board of directors. You may also mention the minority foreign shareholders can have double vote by classification of shares of one share for two votes or the minority foreign shareholders can have preferential shares. There are many tailor-made by-laws to serve your purpose.
Having Thai nominal shareholders is illegal. However, there are many foreigners having majority Thai shareholders who are only nominal shareholders (dummy shareholders), Thai nominal shareholders are always asked to sign the blank share transfer deed. Thai nominal shareholders should not be a consultant or even lawyer because it is a conflict of interest. All the corporate documents should be clearly understandable with complete English translation. The share certificates should be endorsed by the nominees. Their signatures should be made in your presence. Their identity should be also verified. The transfer of shares requires at least two witnesses. You should be able to prove the identity of these witnesses. You will keep the share transfer deed with photocopies of all shareholders and witnesses, pledge of share agreement and share certificates of all nominee shareholders.
In many situations, only blank share transfer deed is not really effective to control the nominee shareholders. There are many legal booby traps that you do not understand. The companies whose majority of shares held by Thai nominee must have the complete documents, for example, share certificates, share register book, minutes of meeting etc. These documents should be translated in English for your understanding. It is advisable to avoid this method if it is not necessary.
Some foreigners lend money to Thai shareholders to buy 51% shares in the Company and the latter pledge their shares as the security for the loan. The foreign shareholders may keep the share certificates which are pledged to them. The pledge of share agreement should be signed with all supporting documents including share transfer deed. It can be a problem for many lenders who have only the agreement signed by the borrower. But the lender has no document to prove that the borrower really received the money. There should be a bank slip showing that money has been transferred into the account of the borrower. It is a matter of fact which must be proved.
In Thailand, there is no special status for holding or dormant companies. All companies must prepare the financial statements (balance sheet) at the end of the year and file with the authorities. If the companies remain dormant for certain period of time, it can be probably inspected by the tax authorities on random basis. Therefore, there should be a movement in your company.
If you buy the land under the name of Thai spouse, the ownership of land can be put under the name of your spouse. Thai spouse means only in case you have registered the marriage with her at the Administrative Office or Thai consulate. The land will become her private property not marital or common property. In case of separation, you can have only your golf bag.
During the period the honey is still sweet, you may beg her to register the right of habitation with the land office for 30 years. With this registration, nobody can disturb you for 30 years.
In case she dies before (predecease) you, you will have the right of inheritance. In this case, you have to share with all her children including your own and step children. If she has no children, you have to share with her parents or brother or sisters as the case may be. However, you may beg her once again to make a last will and testament to bequeath the land to you which is very fair.
Under Thai laws, ownership of a house can be separated from a land. There is a precedence of the Supreme Court No: 301/2538(1995) affirming this concept. The house can be registered under a name of foreigner who may request for the special House Registration Certificate (TABIAN BAN) which is a “Yellow Book” (Thor.Ror.13).
It can be the case whereby a foreigner buys the empty plot of land under his Thai wife name and the latter registers the 30-year lease or right of habitation for her foreign husband. In this connection, the foreign husband can apply for a construction permit under his name. With these documents, the foreign husband will have the ownership of a house or building and movable properties inside the house and also be able to apply for the “Yellow Book”.
If the foreigner buys a land with a completed house from a Housing Estate Project (MOOBAN), he should instruct the seller to put the house under his name. However, most of sellers are reluctant to do accordingly because there must be two separated transactions which are burdensome for them. They just want do all things “Easy” and “Sabai Sabai”.
With your retirement visa and this package, you will be tranquil for the rest of your life.
If you do not have Thai spouse and still want to put in a name of your Thai friend, you may lend him or her money to buy the land. He or she will mortgage that land to you as security for the loan. You may also register with the land office for 30-year lease. This transaction is very susceptible to the contestation for fraudulent act unless you can prove your good faith.

by Mr. Ponthep Werachon
Thai Solicitor
Mrs.Darunee Werachon
Thai Solicitor & Accountant

WERACHON LAW OFFICE : 315/304, Moo 12 Theppasit Road (Soi 12) Nongprue,Banglamung, Pattaya City Chonburi 20260

Kingdom of Thailand Tel: (038) 304 084, (038) 251 533, Fax: (038) 304 027 Mobile: 081 423 4255, 089 889 6483, Website:  www.thaisolicitor.com,  e-mail: thai@werachonlawyers.com

Now the government is planning to solve the flood problem by using some areas of land in each province as the flood ways. Will this policy affect people in Pattaya?

The quotation “a man’s house is his castle” implies the owner’s right to exclusive use and privacy of the land and house without any disturbance even from the state. In the past, all lands in the country belong to the King who allocated the lands to all subjects with the areas according to their responsibilities in a community even slaves could have at least five rais of land.  People could develop the empty plot of land and reserve the right to use the land as “Freehold Right”.

However, certain limitations and restrictions may be placed upon the owner in the enjoyment of his property. The limitation we will discuss in this article is the deprivation of the ownership under the right of “Eminent Domain”.

We had a client who bought an empty plot of land to build up a house without a lawyer. However, once he applied for a building permit with the City Hall, he was informed that he could not use this land because it was in the zone that the City Hall would make a new road.

Some people may compare this situation to the thriller story “Jack the Ripper”. In this article, you will learn that Jack is not the real thriller in this situation because you may still invoke for “Justice, Wisdom and Mercy” under Thai laws. Only the ignoramus will be easily ripped off without proper defense.

In the past, the King had privileges to expropriate the land as it is deemed expedient. There is a legal research that the King would always give the evicting people fair compensation or arrange for relocation to the new places.

The universal concept in developed countries of “Eminent Domain” is the right of the state to take over a person’s real property with or without his consent, for a public purpose known as the right of “Eminent Domain”. This right is exercised when property is needed for public benefit, e.g., highway, dam, bridge approach, electric plants etc.

When private property is taken under the right of “Eminent Domain”, a fair price is paid to the owner by governing authorities. If the owner refuses to accept the price offered, condemnation proceeding are bought by the government and commissioners are appointed to appraise the property. The appraised value is paid to the owner.

The right of “Eminent Domain” may be exercised under special conditions granted by legislation or state authority to quasi public corporation (state enterprise). These include electric and telephone right-of-way, oil and gas pipelines, and other privately owned ventures which are created for the public good and are under the regulation and supervision of state authority.

The Constitution of the Kingdom of Thailand  (1997), which is the supreme law of the Kingdom whereby no provision of any law, rule, or regulation can be contrary or inconsistent guarantees that “the property right of a person is protected. The extent and the restriction of such right shall be in accordance with the provision of the law”

The ideology of “Justice, Wisdom & Mercy” for state to exercise the right of “Eminent Domain” is specified in Section 49.- as follows :-

“ The expropriation of immovable property shall not be made except by virtue of the law specifically enacted for the purpose of public utilities, necessary national defense, exploitation of national resources, town and country planning, promotion and preservation of the quality of environment, agricultural or industrial development, land reform, or other public interests, and fair compensation shall be paid in due time to the owner thereof as well as to all persons having rights thereto, who suffer loss by exploitation as provided by the law.

The amount of compensation under paragraph one shall be fairly assessed with due regard to the normal purchase price, mode of acquisition, nature and situation of the immovable property, and loss of the person whose property or right thereto is expropriated. The law on expropriation of immovable property shall specify the purpose of the expropriation and shall clearly determine the period of time to fulfill that purpose.

If the immovable property is not used to fulfill such purpose within such period of time, it shall be returned to the original owner or his or her heir. The return of immovable property to the original owner or his or her heir under paragraph three and the claim for compensation paid shall be in accordance with the provisions of the law”

The Constitution 1997 which is the most modern constitution in the world establishes only the main principle while all practicality and implementation can be ascertained in the Expropriation Act 1987.

The Constitution 1997 which was abolished by the military junta specified that the state can exercise the right of “Eminent Domain” to expropriate immovable property only under the following purposes :-

1. Public utilities

2. Necessary national defense

3. Exploitation of national resources

4. Town and country planning

5. Promotion and preservation of the quality of the environment

6. Agriculture or industrial development

7. Land reform

8. Other public interests

The plan for expropriation of immovable property can be initiated by either ministry or local administration or state enterprise (quasi state corporation) e.g., Bangkok Metropolis, Pattaya City or Rapid Transit Authority of Thailand.  The plan for expropriation must be studied and submitted to the government who will carefully consider the reason and purpose of expropriation and sometimes arrange for a public hearing. If the cabinet approves the plan, the Royal Decree will be drafted and forwarded to his Majesty the King for final deliberation and approbation. The Royal Decree is a subordinate legislation not required to be considered and passed by the parliament. The Royal Decree will specify the reason, scope and areas of expropriation. The Commissioner consisting of representatives of the governmental office or organization initiating the expropriation or other concerned organization, land department and local council will be appointed for such mission.

The Commissioner will study the condition and purpose of expropriation to survey the areas and ascertain the value for the fair compensation. The Royal Decree normally will have the commissioning period of two years or not more than four years in a special situation. The copies of the Royal Decree with the location of areas under the plan of expropriation will be posted to the public at the City Hall, Land Office, Local Council where the land is located. The Commissioner will negotiate the value of the land and building with the owner. Many prudent buyers will check if the land they will buy is under the Royal Decree of Expropriation.

The Constitution 1997 strongly guarantees the fair compensation to remedy people suffering from the expropriation. This ideology is corresponding to the Expropriation Act 1987 specifying that the “Fair Market Value” of the property will be used for calculation of the compensation by the Commissioner.

If the value of the property can be mutually agreed with a scope of expropriation, the Commissioner will make a report to the government to have final deliberation. If the Government agrees with the Commissioner, it will draft the Act of Parliament to implement the expropriation. A draft of the Act will be debated by members of parliament before voting by both houses.

If the owner of the land to be expropriated is not satisfied with the decision of the Commissioner, such owner may file the appeal to the minister in charge within sixty days. The minister in charge will form the commissioner consisting of at least five learned lawyers and real estate appraisers who will study and make an opinion to the minister for the final decision.  If the decision of the minister is not satisfactory to the owner of the land, the owner can finally file a petition to the Administrative Court within one year from the date the decision is made by the minister. Many owners argue about the reasons of expropriate and value of property for calculation of compensation. Even you accept and receive the compensation, you still have the right to file the appeal.

The Administrative Court is independent and impartial. We have the empirical knowledge that the Thai judicial system is quite transparent and independent under the famous Doctrine of  “Separation of Powers” of the French wise man “Montesquier” who separated power into Executive Power, Legislative Power and Judicial Power. Only the power can balance the power. We do believe that “without the balance, absolute power will corrupt absolutely”.  At the end of the tunnel, you may see the light of  “Justice, Wisdom and Mercy”.

by Mr. Ponthep Werachon
Thai Solicitor
Mrs.Darunee Werachon
Thai Solicitor & Accountant

WERACHON LAW OFFICE : 315/304, Moo 12 Theppasit Road (Soi 12) Nongprue,Banglamung, Pattaya City Chonburi 20260

Kingdom of Thailand Tel: (038) 304 084, (038) 251 533, Fax: (038) 304 027 Mobile: 081 423 4255, 089 889 6483, Website:  www.thaisolicitor.com,  e-mail: thai@werachonlawyers.com

In Pattaya, which is the city located between the devil and the deep blue sea, the most popular business is beer bars, where all pagans can relax by worshiping  hedonism instead of God. Most of the real owners who invest money are foreigners falling in love with the easy life style of  “Mai Pen Rai”. However, this carefree mentality can sometimes lead them to a dilemma. Nobody cares about the crazy farang who lost all his fortune and jumped out of his condominium or died of suffocation by a plastic bag on his head. Believe it or not!  This suffocated farang just committed suicide without any so called, “conspiracy theory”.

This is not easy for these nocturnal businessmen to be prudent when they signed all legal documents to buy this kind of business when they still have their glass of beer on their hands. The Thai ladies beside them always giggle and teasing in Thai language with the fake lawyer who always laughing once the Thai lady called her farang with the nickname “Kwai”.

“I am not a good businessman in Pattaya”

Some people may blame us that we are too pessimistic to write this kind of fiction. However, Pattaya can give the most inspiration for the thriller like the author John Grisham. For us, all stories are from our    “déjà vu” which sometimes remains our nightmare.

The “conspiracy of silence” by all people around the gullible buyers is the main problem. It is advisable to be wise and seek the advice from an independent lawyer who will serve you as his sole master. If you ask the broker who wants to close the deal about the legal protection which may prolong the closure of transaction, you may suddenly know what will be the answer.

The first thing you have to know is who is the owner of  the bar business according to the legal paper. Many farangs put all licenses under the name of their Thai ladies. As you may hear “Hell hath no fury more than a woman scorned”, many deals are collapsed by  the emotional effect of these ladies.

Most of the bar licenses in Pattaya are under the name of Thai ladies which must be approved by the police station , Pattaya City Hall and the Administrative  Office of Banglamung District. The licenses can be transferred to the new owner with the tough red tape process. The new license holder must have the finger print with the police office which will take some time. It is not possible for a farang to be a license holder. For some who set up a company to run the business will find all red tape along the process to obtain a work permit.

It is advisable to hold the payment until you can be sure that the bar license can be transferred to your Thai proxy which is technically called “nominee” to refer to someone whose name is being used to avoid the restriction of law. Some lawyers may draft a proper agreement to protect your interest from the impermanence of relationship between you and your Thai nominee. The payment should be made by a bank’s cheque and held by the neutral person or escrow until the transfer of all licenses is completed.

The second significant factor is the leasehold right of the bar belong to whom. Who is the real owner of the building where the bar is located? Most of them are Thai Chinese businessman in Bangkok who will not have time to deal directly with you. Please ask your lawyer to check and verify if the owner of the bar has a proper lease agreement from the real owner. The sub-lease must be consented by the real owner who will  be happy  only to share money from the deal without any sweat. Under Section 544 of the Civil and Commercial Code of Thailand, it is mentioned that unless otherwise provided by the contract of lease, a lessor cannot sub-lease or transfer his rights in the whole or part of the property leased to a third person. If a lessor acts contrary to this provision , the lessor may terminate the contract.

The right to sub-lease must be clearly mentioned in the lease agreement or approved by the owner. Many buyers of the beer bar are evicted by the owner of the building who never care that the buyer has already paid million to the seller of the beer bar.

Under Section  538 of the Civil and Commercial Code of Thailand, it is  mentioned that a lease of immovable property is not enforceable by  action unless there be some written evidence signed by the party liable. If the lease is for more than three years or for the life of the lessor, it is enforceable only for three years unless it is made in writing and registered by the competent official.

It is strongly advisable to check the remaining period of the leasehold right if you will invest the big amount of your hard earned money. The lease period is just only three years unless it is registered with the Land Office. Nobody wants to register.  Some owners may avoid this registration requirement to have many lease agreements with the period of three years each with the posted signature. However, sometimes it is technically problematic which may lead the gullible buyer to end up in the perdition.

“Truth is always stranger than fiction” should be the maxim only for the ones who are agnostic of wisdom you may seek if m you are sober enough to read this article. Seek a good licensed lawyer to assist you if you are not children, sailors and drunken men who are protected by God.

by Mr. Ponthep Werachon

WERACHON LAW OFFICE : 315/304, Moo 12 Theppasit Road (Soi 12) Nongprue,Banglamung, Pattaya City Chonburi 20260
Kingdom of Thailand Tel: (038) 304 084, (038) 251 533, Fax: (038) 304 027 Mobile: 081 423 4255, 089 889 6483, Website: www.thaisolicitor.com, e-mail: thai@werachonlawyers.com

Do most of foreigners in Pattaya break the laws of the Kingdom? If the answer is “Yes”, “What laws?” should be the next question in your mind. In this article, we will talk about two laws, i.e., the Land Code 1954 and Alien Business Act 1999.

The Land Code 1954

The Land Code 1954 imposes a restriction on all foreigners to the ownership of land, with the exception of inheritance from a Thai national or investment of Baht 40 millions or seek for investment privileges under the Board of Investment (BOI) or Industrial Estate Authority of Thailand (IEAT).

The company is deemed “Foreigner” or “Alien” by Section 97.- with the criteria for determining by the  “Number of Shares ” a  foreigner or foreigners hold in that company. If the number of shares held by a foreigner or foreigners is not more than 49%, the company can enjoy the status of a Thai company to have the ownership of land even a signatory director is a foreigner. There is no restriction about the “Voting Right” in which foreign shareholders can have preferential shares to have more voting rights more than Thai shareholders.

Many foreigners see the loophole to have Thai nominees to hold 51% shares of their shares. The word “Nominee” was the jargon term secretly used by a certain group of lawyers and their clients without any proper definition until the midst of 2006 in which the term “Nominee” became conspicuous to the public by the acquisition of shares of Shin Corp by a Singaporean Company involved with many strategic businesses under the Alien Business Act 1999.

Having a “Nominee” is illegal under what law and punishment should be the question in your mind.  “It is either the Land Code 1954 or Alien Business Act 1999 or both”

Section 113.- of the Land Code 1954 imposes the punishment for any Thai person who connives with a foreigner to own land. We cannot find any punishment for foreigners involved in using “Nominee Structure”. However, these foreigners may be punishable by other laws for a specific circumstance, e.g., production of false information to a registrar.

“Anyone acquiring the land as an agent (acting on behalf of the other) of any foreigner or alien juristic person shall be liable for fine not more than Baht 20,000, or imprisonment of not more an two years or both”

The company having “Nominee Shareholders” shall be fined not more than Baht 50,000 by Section 112.

The implementation of the Land Code has been practically tolerant in many resort cities, especially Pattaya for decades. With the problem in Koh Samui in May 2006 about the bandidos allegedly laundering their dirty money in some development projects, the public became aware of the “Conspiracy Theory” that some foreigners set up more than 300 companies for each of them with some lawyers who became their nominee shareholders. How can a lawyer have money to invest in 300 companies?

Most foreigners setting up a Thai company to buy real properties in Pattaya are retired person who can enjoy their hibernation. No “Conspiracy Theory in any Crime” to harm a society.  The company is “Dormant” without any business activities with the only one purpose to own property for retreat. However, these dormant companies must register their contemplated business activities or objectives. Nobody care what activities their lawyers will put for their dormant company. The most popular activities are “Purchase, Sale and Rent of Real Property” “Import, Export” and  “Business Consultancy” etc. Please search for more information “Setting Up a Dormant Company to Buy Land” in our reading room www.thaisolicitor.com

The Alien Business Act 1999

The implementation of law can be practically tolerant by a specific rationale for specific region. The equilibrium between the tolerant pragmatism and the good faith of property buyers in Pattaya was affected once again by the scandalous acquisition of  Shin Corp by a Singaporean company by using the “Nominee Transaction” which is in violation of the Alien Business Act 1999.

Many years ago, Shin Corp was owned by the family of our former prime minister who was toppled by the military coup on 19^th September, 2006. As it is always used as a pretext by the military coup is to accuse the then government for corruption. Shin Corp is the target because it was the concessionaire of many strategic businesses which are TV station, airline, telephone etc.

On 20^th July, 2006, the Commerce Ministry issued a circular letter to all company registrar offices instructing them to inspect all Thai shareholders in the newly set up Thai-foreigner joint companies to ascertain if they are real or nominee shareholders. All Thai shareholders will have to show the bank statement for the past six-month period.

However, the inspection will not be retroactively on the existing companies or 100% Thai companies who apply for the change of shareholding structure from 100% Thai to be 49% foreigners and 51% Thai with a foreigner as a signatory director.

The violation of the Alien Business Act 1999 by using the “Nominee Shareholders” is more serious than the violation of the Land Code 1954. The imprisonment and fine under the Alien Business Act 1999 is applicable also to foreigners

The Alien or Foreign Business Law 1999 divides business into three categories with the different degree of restriction to foreigners from Annex I includes businesses which are absolutely taboo to foreigners by the special reason.  Annex II includes businesses involving National Safety or Security or Affecting Art, Culture, Traditional Customs, Folk Handicrafts or National Resources and Environment. However, foreigners can do the businesses listed in Annex II by seeking permission from the cabinet and Annex III are businesses involved with service businesses in which Thai nationals are not ready to complete with foreigners. However, foreigners can do these businesses by seeking permission from the Director General of the Department of Business Development.

For businesses not mentioned in these three categories, foreigners can freely do without permission, e.g., manufacturing. You may set up a factory with 100% shares. The privileges under the Board of Investment (BOI), Industrial Estate Authority of Thailand (IEAT) or the Thai-US Treaty of Amity and Economic Relations can also exempt foreigners from the restrictions under the Alien Business Law 1999.

Some elusive foreigners find the loophole of the Alien Business Act 1999 to set up a Thai company which requires 51% Thai shareholders. Some foreigners use the “Nominee Shareholders” to hold 51%, some foreigners ask their lawyers to draft the special articles of association to provide majority voting rights to foreign shareholders by the preferential shares.

What are the business activities and objectives of your company? If your business activities involve “TV station”, you will definitely share the same destiny with Shin Corp because the television station of business is listed in Annex I. If your business activities involve “Purchase, Sale and Rent of Real Property” which are deemed “Land Trading”, your business activities will fall into Annex I.

The business activities of land trading require your company to register the Specific Business Tax (SBT) for real estate business or Value Added Tax (VAT) that will be burdensome for you. It is advisable to register your business in Annex III which may be “services” or “import-export”. You company can become dormant but paying tax for 4,000 to 5,000 Baht or more for the rent you pay to your company. You will not be involved with any “Conspiracy Theory”. If you declare the dormant status of your company to the Tax Office, your company will not fall into the Alien Business Act 1999.

The worst-case-scenario is if you mistakenly registered business the activities of “nuclear plant” for your dormant company, you will definitely have a big problem with Mr. Bush.

by Mr. Ponthep Werachon
Thai Solicitor
Mrs.Darunee Werachon
Thai Solicitor & Accountant

WERACHON LAW OFFICE : 315/304, Moo 12 Theppasit Road (Soi 12) Nongprue,Banglamung, Pattaya City Chonburi 20260
Kingdom of Thailand Tel: (038) 304 084, (038) 251 533, Fax: (038) 304 027 Mobile: 081 423 4255, 089 889 6483, Website: www.thaisolicitor.com, e-mail: thai@werachonlawyers.com

It can be proved that the property market in Pattaya is affected more by outside factors than the enforcement of the Thai laws. The real estate sector is still focused more on residential property than on speculation. You may ask yourself if you can find any other places which can be Eden for hedonist men. The main problem is from many used car salesmen who become consultants in Pattaya. They can only use their forked tongues to make easy money.

To set up a company to buy property is not complicated. Therefore many unlicensed persons find it easy to make money from the gullible foreigners. These unlicensed professionals are foreigners who can speak English with the beautiful native accent by just saying, “No problem my friend, everyone does like this in Pattaya”.

Some unlicensed consultants want their own law firm to steer gullible foreigners to transfer money into their fake client or escrow accounts. In Europe or America, the law is quite strict with such accounts. Many foreigners were steered to buy a fake business or beer bar by transferring money into the fake client account. After losing money, these gullible foreigners fear fighting for justice because they believe these crooks are powerful in Pattaya. “Having a good lawyer and dare no one” should be the motto you may share with our former wealthy prime minister who retained a team of lawyers to fight with the military junta.

If you need a lawyer, you should deal directly with a Thai lawyer who is licensed as a “Tanai Kwam” not only “Legal Advisor”. You may check their professional license issued by the Lawyers Council of Thailand which should be openly hung on the wall.

A qualified accountant must hold a license issued by the Federation of Accounting Professions of Thailand. A qualified accountant may work under the same roof with a licensed lawyer but not with a certified public accountant (CPA) who has to work independently. It is similar to the relationships between a solicitor and a barrister in the UK who must work independently.

Most foreigners who set up a company to buy real property know only they have to pay for their accounts every year. Do they know what lies beneath their accounts?

Annual financial statements (balance sheets and tax returns)

The end of May is the deadline for filing balance sheets and tax reports of all companies having a normal January-December accounting period. Failing to file within 150 days is punishable by fines of up to 50,000 baht for each director and company to a total of 100,000 baht. Imprisonment can be imposed if you still ignore after the lenient fine punishment has been imposed. For the good faith violator, the minimum penalty fines can be about 12,000 baht for the police and 2,000 baht for the tax collector. But the tax you will have to pay is a separate issue.

Before paying for the annual financial statements which are balance sheets and tax returns, you should have a profound discussion with your licensed lawyer and qualified accountant about the accounting and tax structure of your company. You may search for more information about taxation for dormant companies in our reading room www.thaisolicitor.com.

The English language of Thai professionals in Pattaya may not be so excellent but somehow fair enough for your understanding in all technical aspects. Most of them will prepare a trial balance in English in order that you may review the structure of assets and liabilities to verify tax implications.

If you set up a company to buy the real property which includes land and house, the assets in your balance sheet should be recorded as follows:-

Current Assets

● Cash & Bank Deposit

● Accrued Interest Receivable

Fixed Assets

● Account Receivable & Loan from Director

● Land & Building

Total Fixed Assets

Total Assets

The real property is called “immovable property” under the Civil and Commercial Code of Thailand which means “land” (geographical part) and “building” (building structure). The ownership of the land is recorded in the Land Title Deed (Cha Nod) and the ownership of the building house is recorded in the House Register Book (Tabien Baan).

If you buy the land and house, you should check if the seller has registered with the land office for transfer of both land and building house to you. Some unethical developers avoid the transfer tax by only declaring the land not the building house in order that the transfer tax will be based only on the land.

Some buyers may receive only the land not the building house once they buy the property. It is advisable to use the term “land & building house” in stead of “property” once you deal with a seller or broker.

Once you prepare the balance sheet, you should ensure that the house is also recorded in the balance sheet.

What tax lies beneath?

If you buy only an empty plot of land and build a house, all payments you make to your contractor will be subject to the 3% withholding tax for construction service fees. If you fail to deduct this 3% withholding tax, you will be responsible for the tax with surcharge and fine. Under the Revenue Code of Thailand, the company making a payment for service fee must deduct the 3% withholding tax.

The problem can be that some buyers buy the property from the developer who avoids the transfer tax by registering with the Land Office only for the transfer of the land not the building. The developer may use the name of your company to apply for a building permit. Your company will automatically become the owner of the building.  The question is: How do you get this house?

If it is understood that you bought the house from the developer but you fail to register the transfer of ownership of the house with the land office, you can be seen as being involved in a conspiracy with the developer to evade taxes, which is punishable under Thai law.

The developer may say that you hired him to build the house for you. In this case, the payment you make to the developer will be subject to the 3% withholding tax which is your responsibility. If you fail to deduct 3% from the payment you make to the developer, you are responsible for the withholding tax with the Revenue Department.

What lies beneath is the 3% withholding tax with the scenario which may shock you more than a thriller from Hollywood.

by Mr. Ponthep Werachon

WERACHON LAW OFFICE : 315/304, Moo 12 Theppasit Road (Soi 12) Nongprue,Banglamung, Pattaya City Chonburi 20260
Kingdom of Thailand Tel: (038) 304 084, (038) 251 533, Fax: (038) 304 027 Mobile: 081 423 4255, 089 889 6483, Website: www.thaisolicitor.com, e-mail: thai@werachonlawyers.com

“A hard talk with a hard core lawyer who stands up against the unscrupulous border police involved with the conspiracy of extortion and kidnappings”

Is there any place in our planet where the light of justice will never shine? The answer to this question will be definitely different as per the individual perception. Most people enjoy a carefree mentality by saying “It is not my problem”.

We have the stories of two lawyers who could not remain silent to any injustice in this world. Why did they think in a lateral way? Why do they not just wake up everyday and start working like they do in the other days? How do they change the world to be a better place for all of us?

“I don’t believe that there is a vacuum of justice in this world” said the maverick lawyer who fought for detainees in the U.S. concentration camp at Guantanamo bay. It was the reason why he sued the U.S. government to abolish this illegal detention without the due process of law.

Some people died and became the inspiration for other people fighting against the injustice. For Kwanchai Chotiphan, he is just a Thai lawyer who wakes up everyday to work for his family. His legal profession as an “advocate 4 justice” has been started since he received his law degree from the hands of his Majesty the King in 1981. He always tells his friends that the heritage for his two children is education and morality. You can be a good happy lawyer under the doctrine of “Sufficiency Economy” of his Majesty who shows us to find out the “happiness” with the magic word “enough”.

He started telling us the story “I was asked by a lady on February 9, 2007 to help her sister who was famed by the narcotic suppression police”

“My sister is innocent” the lady cried once she told Kwanchai about her unfortunate sister. Kwanchai did not really believe in what she said as most criminals always plead their innocence until proving guilty. However, he agreed to visit the arrested lady who was detained at the Detention Center of the Anti Narcotics Police Office.

Narcotic drug cases are under the special policy for the law enforcement which creates problems from the arbitrary implementation of the “Fast Tract Modus Operandi” which sometimes becomes “Non Judicial”. Many people died once the government declared the draconian war against drug. The misconception from the controversial say of our former prime minister that a lawyer is the one who helps the wrongdoer becomes paradoxical once he afterwards retained a team of lawyers to fight against the junta. Nobody should be prosecuted without advocacy in the due process of law.

“I did not really want to do this case” Kwanchai told us his feeling like many lawyers who did not want to get involved with the sensitive case.

His feeling was dramatically changed once he saw his client in the Detention Center. “I could not imagine that human being would be in such a condition like her. It was really pitiful. She was two-month pregnant”

With the investigation he made with her, she was famed by the border police who came to Bangkok to arrest and extort her for money. She was tortured and forced to plead guilty for the drug they put in her bag. Once she denied giving them money, she was prosecuted with the serious case in the Criminal Court.

“In the USA and many other European countries, the police will have to conduct the whole justice process in compliance with the laws. If there is any irregularity in any stage of the process, the case will be illegal and invalidated whereby the police will have to drop the case” said Kwanchai who was also the counselor of the House of Senators. However, in Thailand, the law enforcement officers can enjoy more tolerance of the laws than other countries.

It was the strategy of OJ Simpson’s team of lawyers who tried to discredit the team of police officers who abused their client.

Kwanchai used the same strategy to prove that the team of border police abused her by the hope that the justice must be done in favor of his client.

If his client is acquitted, Kwanchai will turn himself to become the King of Torts to sue the National Police Office for compensation under the new law that the state will have to remedy the victim of unfair treatment of the criminal case. There is good news that the National Police Office responds very satisfactorily to all unfortunate victims.

If you want to read more about this story, please search the name “Kwanchai Chotipahn” in www.google.co.th. You will be aware that his name becomes the key word for “advocate4justice” who is still alive in the greedy world of consumerism.

“Let justice be done though the heaven fall”