KOH PHANGAN – Surat Thani authorities have dismantled an alleged illegal hotel operation run by two French nationals on Koh Phangan, uncovering tax evasion estimated at nearly 100 million baht. The raid, conducted on November 7th, targeted three luxury villa projects linked to their company, Phangan Development (Thailand) Co., Ltd.

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Led by Pol Col Sombat Chamsaeng, Deputy Commander of Surat Thani Provincial Police, the operation executed a court-approved warrant to search the company’s office and two developed properties—Boho Villas and Boho Village. Investigators discovered 36 completed villas being rented to tourists at rates between 5,000 and 15,000 baht per night without valid hotel licenses. A third site with 29 additional villas was under construction.

The French owners, A. G. G. . and Khalil R., reportedly admitted to operating unlicensed accommodation services. Authorities revealed their business model involved leasing land from Thai nationals, constructing villas, and then selling long-term leases to foreigners for 3-7 million baht per unit. Some villas were subsequently sublet to tourists, with their management company collecting a 20% service fee for annual revenues exceeding 200 million baht.

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The corporate structure showed three limited companies established between 2020-2023 with majority foreign ownership and nominal Thai shareholders. The Revenue Department calculated approximately 95.6 million baht in unpaid taxes from rental income and hotel taxes. Police are pursuing additional charges related to tax evasion and potential violation of foreign business ownership laws through the use of Thai nominees.

-Thailand News (TN)