Suddenly becoming a director of a billion-dollar tax debt company: What did the General Department of Taxation say?

The Tax sector is focusing on strictly managing line of selling invoice of “bogus companies”. Source: Internet

Recently, the press has reflected on the situation that some individuals have petitioned for help to the authorities when they discovered that they had suddenly become a director of a bogus company, owing a billion VND of tax debt.

Nguyen Van Thuc (was born in Quang Binh, temporarily residing in Ba Ria - Vung Tau) suddenly became the director of Mai Huong Trading and Transport Service Co., Ltd which registered to pay tax at Regional Tax Branch of District 7 and Nha Be district. Notably, in the note column, this company stated that it was "not active at the registered address".

Responding to this, the General Department of Taxation said the granting of business registration certificates was implemented by the Department of Planning and Investment.

On February 21, 2017, according to data of the Department of Planning and Investment of HCM City transmitted to the tax management system (TMS), Mai Huong Trading and Transport Services Co., Ltd. registered to change information of legal representative from Nguyen Thi Huong to Nguyen Van Thuc.

As of June 7, 2017, Regional Tax Branch of District 7 and Nha Be district publicised information that the taxpayers were no longer working at the registered address for Mai Huong Company and sent information to Police Criminal Investigation on Economic Order and Position Team of District 7.

According to data from the tax authority, Mai Huong Company owes more than VND 1.5 billion of tax debt. The above debt arose from the time Nguyen Thi Huong was still the legal representative.

Therefore, Regional Tax Branch of District 7 and Nha Be district applied coercive measures of tax debt by proposing the Department of Planning and Investment of HCM City revoke the business registration certificate.

On April 7, 2021, Regional Tax Branch of District 7 and Nha Be district worked with officials of the Economic Security Department of HCM City Police regarding to the tax registration and declaration of Mai Huong Company. At the same time, contacting Nguyen Van Thuc via phone but the working day was not confirmed. The tax branch also issued an invitation letter to Nguyen Van Thuc to work on content related to Mai Huong Company.