Three tax officers protect 34 'ghost' companies to appropriate state money
Three tax officers in Ho Chi Minh City are found guilty of receiving more than VND10 billion ($427,000) in return for supporting 34 "ghost" companies to buy and sell value added tax (VAT) invoices.
Dao Thi Nga and Nguyen Phuong Nam, former officers of HCMC's District 1 tax department, and Ngo Huynh Luy, former officer of the District 5 tax department, received bribes, according to a conclusion of the Ministry of Public Security's investigative agency.
With the help of the trio, Luu Thi Ngat, 39, director of Khanh Hung Service Investment Company Ltd., sold VAT invoices to the intermediary companies of Trinh Tien Dung, who is now at large and wanted.
Dung's group then issued VAT invoices to Thuduc Housing Development Corporation (Thuduc House), with Nguyen Vu Bao Hoang as general director; Saigon Southwest Trading JSC; and Hoang Nam Anh Trading International Company Limited, helping them appropriate VND538 billion ($22.97 million) from the state.
According to the investigation, from 2016 to 2020, Dung took advantage of the government policy encouraging enterprises to export electronic components with a tax rate of 0% by directing many people to establish 34 "ghost" companies in Vietnam and abroad.
This group used 17 companies in Vietnam to issue invoices, legalizing inputs for electronic components purchased from the black market, then sold to businesses to create export records and get VAT refunds to appropriate state money.
Ngat told the investigative agency that she had founded 12 "ghost" companies. Knowing tax officers would inspect signs of tax fraud, Ngat and her accomplices bribed tax officials.
In early 2018, Ngat asked Dao Thi Nga to move the business registration addresses of two companies to Cau Ong Lanh ward, District 1, where Nga was assigned the task of tax management. According to their agreement, Ngat would pay Nga 0.2-0.3% of the total revenue associated with VAT invoices issued by the "ghost" companies.
In return, Nga would not propose her superiors inspect Ngat's companies or give advance notice of tax inspections and examinations, or give advance notice regarding any companies of Ngat that may be subject to coercive tax collection.
Similarly, with her companies and accomplices in districts 3 and 5, Ngat met Nguyen Phuong Nam and Ngo Huynh Luy to ask for "help", agreeing to share a percentage on invoice sales.
In July 2019, Nga found that two companies operated by Ngat recorded abnormally high sales, had signs of tax fraud, harbored risks of being inspected, and had been included on the automatic risk warning system, so she informed Ngat of the situation.
Ngat then carried out procedures to transfer the business registration addresses of both companies to Nam and Luy's areas to evade risks.
When the system discovered that six "ghost" companies of Ngat might be inspected, Nam informed Ngat so she could move them to another location.
Also during this time, the General Department of Customs and the Ho Chi Minh City Customs Department discovered the incident and requested the Tax Department of Ho Chi Minh City to provide information about five companies operated by Ngat.
When being prosecuted in the case related to Trinh Tien Dung and Thuduc House's fraudulent appropriation of state money, Ngat declared she had bribed tax officers.
During the investigation, Ngat said she "didn't remember how many times" she gave bribes to the three tax officials. She claimed she only remembered she had given Nga more than VND2.5 billion ($107,000), Luy about VND2 billion and Nam, VND6 billion.
However, Nga only admitted to receiving nearly VND800 million, while Luy claimed to have received nearly VND500 million.
As Ngat had confessed before being discovered, she was exempted from criminal responsibility for paying bribes.
Regarding the case, Thuduc House's general director Nguyen Vu Bao Hoang and 30 others were accused of fraudulent appropriation of state money; manufacturing counterfeit goods; smuggling; and illegally transporting currency across borders.
Trinh Tien Dung remains at large.
- Read More
Central Vietnam province Quang Ngai to begin work on new VSIP industrial park next year
Vietnam’s central province of Quang Ngai will work with the investor to have construction of VSIP II Quang Ngai, a facility based on the Vietnam-Singapore Industrial Park (VSIP) model, begin in August 2025.
Industrial real estate - Sat, November 2, 2024 | 3:47 pm GMT+7
Vietnam likely to grow 6.5% in 2024-2025: VinaCapital
VinaCapital, among the biggest foreign-run asset managers in Vietnam, has forecast the country’s economy to achieve 6.5% growth in both 2024 and 2025, with the composition of the expansion to change to more domestically driven factors next year.
Economy - Sat, November 2, 2024 | 2:00 pm GMT+7
Major Vietnamese developer Novaland appoints new CEO
Duong Van Bac, who joined Novaland as chief financial officer in August 2023, has been appointed general director, starting Friday.
Companies - Sat, November 2, 2024 | 10:24 am GMT+7
Vietnamese conglomerate Bamboo Capital posts 36-fold profit growth in Q3
Ho Chi Minh City-based Bamboo Capital Group recorded an after-tax profit of VND331.2 billion ($13.1 million) in the third quarter of 2024, an astounding 36-fold expansion year-on-year.
Bamboo Capital - Sat, November 2, 2024 | 9:41 am GMT+7
ThaiBev to bag $54 mln from Sabeco’s upcoming dividend payout
Vietnam Beverage, wholly owned by Thai Beverage (ThaiBev) will rake in VND1,374 billion ($54.26 million) worth of dividend from Ho Chi Minh City-based top brewer Sabeco.
Companies - Sat, November 2, 2024 | 9:13 am GMT+7
Steel heavyweight Hoa Phat pours over $2 bln into central Vietnam complex
Leading Vietnamese steelmaker Hoa Phat had invested more than VND52.5 trillion ($2.08 billion) in its Dung Quat Iron and Steel Integrated Complex (Dung Quat 2) in the central province of Quang Ngai as of Q3/2024.
Industries - Sat, November 2, 2024 | 8:00 am GMT+7
Vietnam becomes Australia’s fastest-growing inbound market
The number of Vietnamese tourists to Australia has grown significantly after the Covid-19 pandemic, with nearly 178,000 reported in the 12 months to August 2024, according to a Friday press release by the Australian Minister for Trade and Tourism’s Office.
Southeast Asia - Fri, November 1, 2024 | 10:02 pm GMT+7
Study finds shift in Thai consumers’ spending patterns
Consumers in Thailand are shifting their spending focus to experiences and investments, according to the latest ASEAN Consumer Sentiment Study (ACSS) by United Overseas Bank (UOB).
Southeast Asia - Fri, November 1, 2024 | 10:00 pm GMT+7
Energy security, digitalization key to Indonesia's economic growth
The Indonesian government is prioritizing long-term economic growth through energy security, digitalization, and natural resource industrialization, according to Deputy Minister of Finance Thomas Djiwandono.
Southeast Asia - Fri, November 1, 2024 | 9:58 pm GMT+7
Vietnam PM's Middle East tour creates breakthroughs in economic, trade, investment cooperation: FM
Prime Minister Pham Minh Chinh’s freshly ended six-day trip to the UAE, Saudi Arabia and Qatar has produced important outcomes, demonstrating the growing relations between Vietnam and the three Middle-East countries, Deputy Prime Minister and Foreign Minister Bui Thanh Son told the Vietnam News Agency.
Politics - Fri, November 1, 2024 | 9:25 pm GMT+7
Vietnam, Qatar look to tap potential for energy, oil & gas collaboration
Vietnam and Qatar have recognized the significant potential for further collaboration in multiple sectors such as energy, oil and gas, especially LNG, agriculture, Halal industry, and banking.
Politics - Fri, November 1, 2024 | 9:02 pm GMT+7
Thailand bans export of raw palm oil until December
Thailand's Department of Internal Trade has temporarily banned the export of raw palm oil due to reduced production caused by drought and plant diseases.
Southeast Asia - Fri, November 1, 2024 | 8:31 pm GMT+7
Envision Energy to build $420 mln wind power plant in Vietnam from June 2025
Envision Energy Singapore Pte Ltd, under China-based Envision Energy, aims to kick off construction of the 300-MW Envision Nam Po wind power plant in Vietnam’s northern mountainous province of Dien Bien in June 2025.
Energy - Fri, November 1, 2024 | 8:30 pm GMT+7
Indonesia to ban plastic waste imports from 2025
The Indonesian government will start imposing a ban on the import of plastic waste from the beginning of next year, according to Minister of Environment Hanif Faisol Nurrofiq.
Southeast Asia - Fri, November 1, 2024 | 8:29 pm GMT+7
Islamic economy makes up 48% of Indonesia’s GDP
The contribution of Islamic business activities to Indonesia’s GDP has been estimated at 48%, local authorities reported at the 11th Indonesia Sharia Economic Festival (ISEF).
Southeast Asia - Fri, November 1, 2024 | 8:28 pm GMT+7
Restructured construction giant Tracodi gets set to execute ambitious plans
After changing its name and restructuring as a group, Tracodi Construction Holdings JSC (HoSE: TCD), a member of Bamboo Capital Group (HoSE: BCG), has completed a leadership shake-up and is poised to achieve rapid growth.
Bamboo Capital - Fri, November 1, 2024 | 4:43 pm GMT+7