Owing trillions VND in tax, many petroleum businesses coerced

Stopping the use of invoice for one year

The Tax Department of Hau Giang province recently issued an enforcement decision by stopping the use of invoices for Nam Hau Giang Petroleum Trading Investment Joint Stock Company for its overdue debts of VND 1,139.91 billion for more than 90 days from the payment deadline according to regulations.

Explaining the reason for being enforced by the Tax agency, Nam Song Hau Trading Investing Petroleum Joint Stock Company said that on December 18, 2023, the company received an official dispatch from the Tax Department of Hau Giang province on enforcing the implementation of administrative decisions on tax management by stopping the use of invoices for one year from December 18, 2023

On December 20, 2023, the People's Committee of Hau Giang province sent an official dispatch to the Ministry of Finance and the General Department of Taxation asking for opinions to remove the problem for the company, allowing the company to gradually pay taxes for the state budget.

According to the company, the company is still operating in sales and paying 18% tax each time it arises to the state budget. At the same time, the company also explained to the Tax Department of Hau Giang province and made a plan to pay the tax debts in 2024.

Nam Song Hau Trading Investing Petroleum Joint Stock Company said that in 2021 the company paid VND1,707 billion in taxes, and VND1,224 billion in 2022. However, because taxes arose regularly and continuously every month, the company fully declared and paid them into the state budget according to regulations. Accordingly, tax amount arising each month was about VND146 billion.

However, at the end of 2022, due to the economic impact of the global petroleum market in general and domestic market in particular, the company encountered many difficulties. The Ministry of Industry and Trade asked petroleum businesses to import goods to ensure market supply, so the company mobilized money on importing goods, leading to delays in tax payment.

In addition, from April 2023 to July 2023, the company also spent VND250 billion to repurchase two bond packages before maturity.

Applying strong measures

In addition to the above case, previously, in June 2023, at the request of the Ho Chi Minh City Tax Department, the Investment Customs Branch (Ho Chi Minh City Customs Department) issued a decision to enforce by stopping customs clearance for imports and exports of Xuyen Viet Oil Travel and Transport Trading Company Limited (address 465-467, Hai Ba Trung, Ward 8, District 3, Ho Chi Minh City), for the tax debt amount of over VND1,500.

Previously, Xuyen Viet Oil Travel and Transport Trading Company Limited was enforced by the Ho Chi Minh City Tax Department, such as: deducting money from the account; stopping the use of invoices; revoking the business registration certificate.

On September 8, 2023, the Investigation Agency, Ministry of Public Security prosecuted the case, prosecuted and detained two defendants in the case: " violations of regulations on the management and use of State assets causing losses", occurred at Xuyen Viet Oil Company and a number of related agencies and organizations.

The two arrests: Mai Thi Hong Hanh, born in 1979, Director of Xuyen Viet Oil Travel and Transport Trading Company Limited and Nguyen Thi Nhu Phuong, born in 1992, Deputy Director of Xuyen Viet Oil Travel and Transport Trading Company Limited were charged with the crime of “mismanagement and misuse of State assets causing losses ", stipulated in Clause 3, Article 219 of the Penal Code.

Previously, in August 2023, the Ministry of Industry and Trade issued a decision to revoke the certificate of business license for this company from August 11. This decision was made after the Ministry of Industry and Trade established a team to inspect the compliance with regulations on petroleum business in 2023.