THAILAND – A multi-agency raid on Koh Phangan uncovered 89 suspected shell companies and a cluster of luxury villas being rented to foreign visitors without the required hotel licences, officials said.
Large scale operation targets alleged foreign-run businesses
At 10:00 on 21 October, a taskforce led by Police Colonel Sirichai Suksat, deputy commander of Surat Thani police, executed coordinated searches across multiple sites on the island following orders from Governor Theerut Supaviboonphon. The operation involved police, tax officials, land experts and forensic teams and targeted businesses allegedly operated illegally by foreigners.
Investigators focused on four locations, including two business premises in the Talad Mai area that were linked to the 89 firms. Authorities reported finding staff, corporate records and other documents at one office, while a second office was found empty with no signs of active business operations.
Unlicensed luxury villas rented to tourists
The most sensitive discovery was a beachfront villa development at Khao Hin Nok. Officials found eight luxury villas, seven of which were occupied by foreign tourists at the time of the raid. Guests were reportedly paying up to 13,000 baht per night for accommodation that did not operate under a valid hotel licence.
Six people were questioned at the site, including the villa manager and several foreign tenants. Investigators also observed further villa construction in the nearby area. The land involved in the project was estimated to be worth 152 million baht.
Complex corporate arrangements under scrutiny
Preliminary inquiries revealed a complicated ownership structure behind the properties. Two Thai companies that held the land reportedly had 49 percent ownership stakes attributed to Israeli shareholders. Authorities said subsequent parceling of land and share transactions appeared designed to obscure the sale of villas and to minimise tax liabilities.
At one office location officers discovered personnel and paperwork that could shed light on the corporate arrangements; at the other, the listed company owner was not present and was said to be in Bangkok with a foreign spouse.
Documents seized for forensic analysis as probe continues
Officials seized documents and financial records for detailed forensic examination. Authorities said the evidence would be evaluated to determine the full scale of alleged tax evasion and other violations, and that the probe could lead to fines, prosecutions and tighter monitoring of foreign property investment practices on the island.
Local officials described the operation as a substantial blow to the shadow economy on Koh Phangan and a clear warning to those who seek to circumvent Thai regulations. The investigation remains ongoing as authorities work through the seized material to build cases against the parties involved.