The head of the National Counter Corruption Committee, Somluck Chatkrabuanpol, said Tuesday, the nine- member panel is expected to rule next week.

This could become the first corruption scandal against Thaksin and his family since he was ousted by a military coup September 19.

Thaksin was accused of massive corruption during his two terms in office. Coup leaders cited Thaksin's alleged graft as one of the justifications for the coup, and set up special committees to investigate whether he, his family and close allies could be prosecuted.

ADVERTISEMENT

The Assets Examination Committee, a team of military-appointed graft investigators, ruled Monday, that Thaksin's brother-in-law, Bhanapot Damapong, had to pay the tax bill of 546 million baht on the purchase of Shin Corp shares in 1997 from one of Thaksin's domestic helpers, a deal valued at 738 million baht.

Thaksin's wife, Pojaman, bought the shares from a Shinawatra domestic helper, Duangta Wongpaki, and also paid the required 1 percent transaction fee and called the purchase a gift for her brother, said Sak Korsaengruang, a spokesman for the AEC. Thaksin was known to have transferred shares in Shin, his telecommunications empire, to his maid, driver, relatives and others to shed holdings before taking public office.

At the time, the 1997 deal was deemed to be tax-free since it was called "a gift," Sak said. But an investigation found that the check issued to Duangta was later deposited in a new bank account belonging to Pojaman.

"Evidence shows that Bhanapot and Pojaman covered up illegal activity to avoid paying taxes," Sak said.

The AEC ruled the deal was a handout from Pojaman to her brother and should be taxed and suggested that those involved face criminal charges, Sak said.

The committee ruled that Bhanapot should pay 273 million baht in taxes plus a fine of the same amount.

The National Counter Corruption Committee has been conducting a parallel investigation.

The NCCC, which can issue an indictment and send the case to court, focused its investigation on 10 people, Somluck said. They include Bhanapot, who faces tax evasion charges, and Thaksin's wife and the maid, who face charges of conspiracy to evade taxes.

Seven senior officials from the Revenue Department face charges for dereliction of duty.

The lawyer for Thaksin's family, Nopadol Patama, said the former premier's wife and brother-in-law would fight any charges in court.

In a separate case, the Revenue Department ruled recently, that Thaksin's son and daughter would have to pay taxes on the family's sale of Shin earlier this year to Temasek Holdings, Singapore's state-run investment firm, for 73.3 billion baht. The children's tax bill has not yet been revealed.

The Shin sale drew widespread protests in Thailand because it placed strategic assets - including communications satellites - in foreign hands, and because the deal was structured so that Thaksin's family did not have to pay capital gains taxes.

Protests over the sale fueled calls for Thaksin to resign, causing political tension that culminated in the September 19 military coup. ASSOCIATED PRESS