THE INHERITANCE tax law will take effect on February 1 but wealthy families can keep taxmen away from their fortunes by setting up holding companies, a prominent lawyer said.
Under the law, the extra incremental of an inheritance worth over Bt100 million will be taxed at between 5-10 per cent.
The best way to keep taxmen away is to minimise the value of inheritance, said Chinapat Visuttipat, a partner of Siam City Law Offices, during a presentation to Kasikornbank clients last week.
“All the assets should be transferred to a holding company, chiefly land plots,” he said, adding that this should be done as soon as possible as the Treasury Department’s new appraisal value would be effective next year and that would automatically increase the transaction cost.
The holding company can then pay out dividends to all beneficiaries, he said, and despite the transfer the owners enjoy full control of the assets through the ownership of preferred shares.