Development shock causes re-think

 

The director of the Department of business for Surat Thani warned all companies to submit their 2005 annual financial summary reports, as late submission will result in the company being fined up to 50,000 Baht. Business companies are bound to submit their financial report within 5 months as from the end of the financial year. This means the 2005 financial summary should be handed in by the end of May 2006. So far 400 companies (Samui) have failed to submit their report and de Department proceed to check on these companies in order to find out whether they are still in business or not. For companies which have failed to submit the report for 3 consecutive years, the Department will declare these companies forsaken companies and file law suits against them. They will be fined according to the period of time they have delayed their submission.

A spokesperson for the Department added that most of the companies being sued on Samui are foreign.

In addition, the Interior Ministry has urged all provincial CEO's to keep an eye on attempts to divide big pieces of land up to smaller plots, so as to avoid having to apply for permission to run a property development business. The Ministry concern follows evidence of groups of people attempting to divide up land into smaller plots of less than 10 plots, with roads connecting to each of them and the layout of the main road suggesting that the site may later be transformed into development property. The Ministry has therefore declared that any land divided up into smaller plots together with road connections, amounting less than 10 smaller plots of similar size will be count as development property and will require owners to apply for permission to manage the property.

Those who fail to comply with the rules will be punished. The ministry has also sent officers to check whether there has been any attempt to advertise development properties that have not yet gained permission from the Ministry to be developed and sold, or not sold, as development property. The ministry will pursue those who break the law.

It is expected that Samui's property business will be affected by this new regulation. However, considering what we have lost, half of the island, it is time for us all to rethink and reorganize the whole property development business, as the government up to now has failed to control these dealings. As a result, Samui inevitably suffers environmental problems; some consumers have been taken advantage of; and investors get away with avoiding paying tax.