List out enterprises ‘magics’ Asanzo to evade tax

Refrigeration products were imported by Asanzo. Photo: T.H

Accordingly, 12 companies which were no longer operated at the registered address as notified by the tax authority, mainly because the employees of Asanzo Group are named as legal representatives to import electronic goods and components, electrical appliances, air conditioners for sale to Asanzo Group and its subsidiaries.

The inspection results of Ho Chi Minh City Tax Department showed these companies had signs of issuing invoices to Asanzo which had written higher value than actual transaction value to evade VAT and corporate income tax. Specifically, after the Asanzo Group and its subsidiaries transferred money to the above companies, the money was transferred back to the Asanzo Group and its subsidiaries. Especially, Nguyen Thi Hien (wife of Pham Van Tam - Chairman of Asanzo Group Joint Stock Company) and individuals who are employees of companies under Asanzo Group withdrew the total amount of more than VND 507 billion.

For example, in the case of Tran Thoan Company, as of June 30, 2019, total value of input goods purchased from Tran Thoan Company was recorded according to an invoice at more than VND 71 billion, the unpaid amount was more than VND 47 billion. Through verification of the bank account of Tran Thoan Company, it showed that after the money was transferred from Asanzo Corporation and Asanzo Refrigeration Company, Tran Thoan Company paid to foreign customers, paid for companies which no longer operated at the registered address and transferred money to Asanzo Investment Joint Stock Company (under Asanzo system). Asanzo Investment Joint Stock Company was accounted for more than VND 34 billion of loans from Tran Thoan company. Remarkably, after transferring money, there was an incident when Hoang Thi Thu Trang - an employee at Asanzo Group - withdrew cash at Tran Thoan Company.

From theseinspection results, the Ho Chi Minh City Tax Department thought the violation was: Tran Thoan Company was the importer and sold goods to Asanzo Group Joint Stock Company. Through inspection, the Asanzo Group Joint Stock Company used an illegal invoice (the invoice showing the temperature item which did not match the actual goods as component) received from the company that only exported air conditioning components to evade excise taxes.

The signs of violation was showed through the transfer of money back to account of Asanzo Investment Joint Stock Company by Tran Thoan Company and Hoang Thi Thu Trang withdrawn cash. Tax authorities recommended Ho Chi Minh City Police Department to clarify what the withdrawal amount was.

Similarly, through inspections at more than a dozen companies importing goods to sell to Asanzo Group Joint Stock Company, including: Pacific Manufacturing Co., Ltd; Thach Son Investment Cooperation Co., Ltd; Hung Thinh Investment and Development Company Limited; Nam Tien Service Trading Development Production Company Limited; Gia Bao Import Export Trading Investment Company Limited; Khai Phong Import and Export Company Limited; Loc Phat Trading and Investment Limited Company; Viet Tin Investment Cooperation Company Limited; Le Quang Investment and Trading Technology Co., Ltd. The HCM City Tax Department also detected violations that was similar to the case of Tran Thoan Company. These companies are named by employees of Asanzo Group as the legal representative to import goods, electronic components, electrical appliances and air conditioners for sale to Asanzo Group and companies under this group. Companies had showed signs of issuing invoices to Asanzo Group Joint Stock Company that declared higher value of transactions for the purpose of evading VAT and corporate income tax.

In all the above cases, the HCM City Tax Department transferred the entire dossiers to the police investigation agency of Ho Chi Minh City Police to clarify the amount of money that companies importing goods to Asanzo transferred back to the account for companies under Asanzo system group, the individuals who were employees of the Asanzo Group,withdrew cash in accounts of more than a dozen companies; unpaid debts but the enterprise was shut down operation and not associated with the value of goods in transaction to determine the value of the invoice that was declared higher than the transaction value for tax evasion.