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A shipment of refrigeration products imported by Asanzo Group Joint Stock Company. Photo: T.H

Using illegal e-invoices

The Police Investigation Department of Ho Chi Minh City Police has prosecuted Pham Van Tam, former Chairman of the Board of Directors of Asanzo Group Joint Stock Company and Pham Xuan Tinh (legal representative, former General Director of Asanzo Group Joint Stock Company) for tax evasion.

The Police Investigation Department determined that Mr. Pham Van Tam directed Pham Xuan Tinh to sign contracts with a number of companies to purchase components and accessories for air conditioners.

After that, Asanzo Company has used components to assemble finished products of air conditioners and sold these products but failed to declare or pay Special Consumption Tax, excluded them in the accounting books; used illegal invoices to account for goods and input materials for tax evasion.

In addition, Asanzo Company has bought air conditioner components and hired another companies to process part of them, and assembled the rest of the air conditioner products, stamped and packaged with the Asanzo brand.

The firm sold the finished products to Asanzo Refrigeration Company in April 2019 (10,990 sets) and June 2019 (15,518 sets) but failed to issue the VAT and excluded air conditioning components and finished products in the accounting books and failed to declare Special Consumption Tax.

The tax authority's assessment conclusion showed that from 2017 to the second quarter of 2019, Asanzo Company committed tax evasion for Value-added tax and Special Consumption Tax worth VND15.7 billion (VAT at about VND4.2 billion and Special Consumption Tax at VND11.5 billion).

Involving in a series of bogus companies

In 2019, after an inspection, Ho Chi Minh City Tax Department handed over the file of administrative violation with criminal signs to pursue criminal liability involving Asanzo Group Joint Stock Company.

According to the inspection conclusion of the city’s tax man, from 2016 to July 2019, Asanzo Company violated regulations on Value Added Tax, Corporate Income Tax, invoices, and failed to submit Special Consumption Tax declaration documents.

The results showed that 12 companies have not operated at the registered address due to that employees of Asanzo Group Joint Stock Company are named as legal representatives to import goods, electronic components, household appliances, and air conditioners for sale to Asanzo Group and its companies.

These companies issue invoices to Asanzo Group Joint Stock Company that are higher than the transaction value for evasion of VAT and Corporate Income Tax. Notably, after Asanzo Group Joint Stock Company and its companies remitted money to these companies, the money was transferred back to Asanzo Group Joint Stock Company and its companies. Ms. Nguyen Thi Hien (Mr. Pham Van Tam's wife) and employees at companies under the Asanzo Company withdrew a total of more than VND507 billion.

For example, the verification of Tran Thoan Company's bank account shows that after money was transferred from Asanzo Group Joint Stock Company and Asanzo Refrigeration Company, Tran Thoan Company made payments to foreign customers and companies on the list of no longer operating at the registered address and transferred money to Asanzo Investment Joint Stock Company (part of the Asanzo system). Notably, after transferring money, Ms. Hoang Thi Thu Trang - a staff at Asanzo Group withdrew cash at Tran Thoan Company.

From the inspection results, Ho Chi Minh City Tax Department identifies violation that Tran Thoan Company is the importer of goods sold to Asanzo Group Joint Stock Company. The Asanzo Company used illegal invoices received from companies that only exported air conditioning components for Special Consumption Tax evasion.

The value of invoices issued by Tran Thoan Company to Asanzo Group Joint Stock Company and Asanzo Refrigeration Company Limited is higher than the transaction value through Tran Thoan Company transferring money back to account of Asanzo Investment Joint Stock Company and Ms. Hoang Thi Thu Trang for her to withdraw cash. The Tax Authority requested the Ho Chi Minh City Police to clarify the withdrawn amount.

Ho Chi Minh City Tax Department has transferred all documents to HCM Police Investigation Department to investigate and clarify the amount of money the companies importing goods for Asanzo and transferred back to the companies' accounts of Asanzo group, the amount of cash withdrawn by employees of the Asanzo group from the accounts of more than a dozen companies; unpaid debts and enterprises that have stopped operations and are not associated with the value of the transaction goods to determine the invoice value higher than the transaction value for tax evasion.