Thailand Legal and Business News: March 2010

Supreme Court Opinions

GROUNDS FOR DIVORCE
Mrs. Prapai Tanonkaew vs. Mr. Kitipoom Phetyoi

The Defendant sent a letter of complaint to the Plaintiff’s superior and instructor that the Plaintiff committed adultery with other woman. This matter is regarded as the personal behavior of the Plaintiff. The Defendant who is the wife of the Plaintiff has the right to express her love and jealousness upon her husband. Her request to the Plaintiff’s superior and instructor to admonish the Plaintiff to think of his family is not regarded as humiliating the Plaintiff’s reputation. No severe disciplinary punishment was executed.

SUBLET AGREEMENT TRANSFER THE LEASED PROPERTY
Ms. Suwanna Sae-heur vs. Mr. Komrat Maliwongse

The 30 years land leased contract indicated that leased for construction the buildings and there was no tea money for the lease. T, the former lessor and the three Defendants did not designate the construction period and the amount of the buildings that the three Defendants is going to build up on the leased land. From the contract, it is cleared that the three Defendants have right to construct the building in any quantity and at any time during the leased period. And in setting the new agreement on constructing period.

NON-MONETARY DAMAGES AND ACTING ON BEHALF OF A MINOR
Mr.Chaot-uthai Fuungsiriviboon vs. Mr. Boonruen Netniyom

The plaintiff claims for compensation in cause of action on tort. The defendant argued that the plaintiff’s lawful father made a contract of compromise regarding damages so there is no current right to claim the compensation of the plaintiff. The Court judged that the legal representative of the Plaintiff made the contract of compromise relating to the property of the minor without Court consent which is a void act. The right to claim has therefore not expired.

Credits:

This article has been prepared with the assistance of Chaninat & Leeds, a full-service law firm practicing both family and business law, with staff that include experienced Thailand investigators.

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Exemptions to be made for New Property Tax

29 March 2010

The newest draft version of the new property tax bill provides exemptions for small-home owners and farmers. Revisions by various state agencies and ministries, including the Finance Ministry and the National Economic and Social Development Board, intend to decrease potential tax burdens of farmers and other low income groups.

Rather the draft bill--expected to be submitted to Cabinet for its review this week--means to target landlords, land developers and property firms. Land lords that own large numbers of plots or those that gained land by inheritance are expected to face significant increases in taxes.

The current draft outlines ceilings on taxes on different types of land, including a) farm land (0.05 per cent of land value); residential land (0.1 percent); and others including commercial venues and unused land (0.5 percent). If unused land remains idle for three years, its tax rate could double, but not exceed 2 percent.

Finance Minister Korn Chatikavanji wants to propose further changes to the draft that would expand the exemptions to owners of small parcels of land (50 square wa or less) and condominiums no larger than 30 or 50 square meters. These measures are further intended to protect low-income urbanites.

In addition, Prime Minister Abhisit Vejjajiva has announced his desire to set up a “Land Bank Fund” whereby the government would buy land from people who do not want a large number of plots or whose land is sitting idle. Plots acquired through this project would then be redistributed to the poor. Part of the financing from the project would come from the property tax receipts. New legislation will be required to realize such a scheme.

Further, the property tax is being cited as a means to further institute fiscal decentralization, giving more money and decision-making powers to local governments.

The new property tax draft is expected to be submitted to Cabinet for its approval this week.

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