Asanzo violated tax with many aggravating circumstances

Products named Asanzo was the exhibit in case of the Sa Huynh Company. Photo: Lê Thu

According to the decision of Ho Chi Minh City Tax Department, Asanzo Group Joint Stock Company (referred to as Asanzo) had committed a series of violations in tax declaration and deduction of VAT, corporate income tax, and personal income tax which were not in accordance with the provisions of law.

Ho Chi Minh City Tax Department has applied aggravating circumstances to Asanzo because this business has committed administrative violations many times, violations with large volume or great value. In particular, according to the HCMC Tax Department, after violating, Asanzo has evaded and concealed administrative violations.

Specifically, for VAT, businesses declare output VAT and input VAT inconsistently with regulations.

In terms of invoices, the Ho Chi Minh City Tax Department asserted that Asanzo had committed violations when selling goods or providing services but did not issue invoices; illegal use of invoices (the invoice containing the fake contents, showed air conditioners but the actual content were components of air conditioners).

This enterprise is determined not have recorded in the accounting book for the items of air-conditioner components purchased from a number of enterprises in order to process, partial manufacturing and assembly of finished products which was air conditioners (capacity of 90,000 BTU or less, with Asanzo stamped, packaging labeled Asanzo).

The products were then sold to businesses under Asanzo system, and the use of an input invoice containing the fake contents, which showed the item of air conditioners but the actual content were components in order to keep business account of the input. This means that they did not have to declare payable excise tax.

Besides that, with associated transactions, Asanzo did not declare in the appendix enclosed with the declaration of corporate income tax finalization as prescribed in Decree 20/2017/ND-CP.

Thus, with the above violations, the Ho Chi Minh City Tax Department has issued a decision on sanctioning about tax and collect arrears of Asanzo Group Joint Stock Company with a total amount of monetary penalties is VND68.57 billion.

Asanzo was sanctioned with aggravating circumstances after the act of evading and hiding violations, so the monetary penalties was VND26.3 billion VND (including sanctions for incorrect declaration of VND4.9 billion, sanction 1.5 times for the acts of failing to issue invoices with the value of VND6.3 billion, and sanction 1.5 times for the special consumption tax of VND14.6 billion; collect tax amount of VND40.5 billion and amount of late tax payment is VND1.6 billion).