Vietnam agribusiness HAGL must pay $38,200 in fine for incorrect declarations and back taxes

Due to incorrect declarations of value added tax, personal income tax, and land rent, Vietnamese agri major Hoang Anh Gia Lai JSC (HAGL) will have to pay nearly VND974 million ($38,218) to the state coffers.

The sum includes a fine of VND159 million ($6,230), nearly VND722 million ($28,330) in back taxes, and VND92.8 million ($3,640) in late payment fees, according to a recent decision by Gia Lai province's Tax Department.

Specifically, the company was found to have made incorrect tax declarations, leading to underpayments in value added tax (VAT) in 2023, personal income tax in 2022 and 2023, and land rent in 2022 and 2023.

Although HAGL incorrectly declared corporate income tax, this did not result in a shortfall. Additionally, the company failed to issue invoices for goods used as gifts, violating tax regulations.

HAGL business performance has seen positive developments recently. For the first nine months of 2024, the corporation recorded revenue exceeding VND4,000 billion ($157 million) and a profit after tax of VND851 billion ($33.36 million), a 20% increase compared to the same period last year which was driven by reductions in the cost of goods sold and fixed costs.

HAGL chairman Doan Nguyen Duc stated that the company has recovered thanks to its focus on agriculture and a development strategy aligned with circular agriculture.

Looking ahead, the company plans to continue restructuring its finances to reduce outstanding bank debts, lower interest expenses, and maintain a stable cash flow for production and business activities.

He expressed hope for gradually eliminating accumulated losses and lifting the company’s stock from the warning list.

During a recent field trip with shareholders, Duc highlighted the company’s expansion of durian cultivation, doubling the plantation area to 2,000 hectares over the past two years, spanning from Vietnam to Laos.

The company aims to harvest 600 hectares in 2025. Duc noted that China will likely need another 7-10 years to achieve self-sufficiency in durian production, even if it leases land for cultivation abroad. He emphasized that this represents a golden opportunity for businesses in the next five years.