Sun Life Insurance proposed to handle more than 600 billion VND

The Department of Insurance Management and Supervision (Ministry of Finance) has just issued conclusions on the thematic inspection at Sun Life Vietnam Insurance Company Limited.

44 agents and employees did not comply with regulations

Through sample inspection, 44 cases of insurance agents and bank employees were discovered that did not comply with regulations during the insurance sales process.

Bảo hiểm Sun Life bị đề nghị xử lý hơn 600 tỉ đồng - Ảnh 1. — Illustration

Specifically, there were 6 cases (involving 4 individual insurance agents and 2 bank employees) that did not comply with the company's regulations to allow others to sign on behalf of the insurance buyer, sign on behalf of the insurance buyer on the insurance request form prepared via the SunSmart application; sign on behalf of the insurance buyer on the insurance contract handover receipt...

There were 11 cases (involving 7 individual agents and 2 bank employees) that did not comply with the company's regulations on handing over insurance contracts.

7 cases are individual agents who have not complied with the company's regulations in using agent codes, equipment, supplies, and machinery assigned by the company.

9 cases (involving 7 individual agents and 1 bank employee) did not comply with the company's regulations on meeting customers when consulting and preparing insurance application documents.

5 cases (involving 3 individual agents and 1 bank employee) did not comply with the company's regulations on supervising customers signing insurance application files and related documents.

6 cases (involving 3 personal insurance agents and 3 bank employees) did not comply with the company's internal regulations in the process of serving and supporting customers.

Notably, the inspection determined that the company accounted for expenses and revenues related to life insurance distribution activities through the banking channel (bancass) as deductible expenses when determining taxable income for corporate income tax in 2021, which was not in accordance with the law on insurance business and tax law with a total amount of more than VND 600.4 billion.

Specifically, revenue accounting for contracts refunding customers who cancel insurance contracts is more than 622.9 million VND.

Paying initial support costs, cooperation fees for banks and accounting for deductible expenses when determining taxable income for corporate income tax in 2021, the amount is more than 343.2 billion VND .

Payments and accounting for support to banks that are not in accordance with the law on insurance business and tax law total more than 247.8 billion VND.

Implementing the emulation program was not consistent with the original proposal, was not related to the production and business activities of the insurance company, and was accounted for as deductible expenses when determining taxable income for corporate income tax with an amount of more than VND 8.6 billion.

Proposal to handle more than 600 billion VND

The Ministry of Finance proposed the General Director of Life Insurance Company Limited Sun Life Vietnam made a financial handling recommendation for the 2021 accounting period: accounting for a reduction in deductible expenses when determining taxable income for corporate income tax in 2021, an amount of more than VND 600.4 billion.

For expenses with similar content, name, payment method, vouchers and related documents as the expenses stated in the inspection conclusion of related accounting periods, the company is requested to adjust accounting, determine, recalculate, and declare additional corporate income tax accordingly; do not allocate expenses paid by insurance companies, and do not account for them in accordance with legal regulations into policyholder funds.

The Ministry of Finance also requested the General Director of Sun Life Vietnam Insurance Company Limited to review and rectify agent training and insurance agent management, ensuring that insurance agents comply with the provisions of law and the company.

In the process of receiving and processing information, recommendations and feedback from insurance customers, if any violation with signs of crime is detected, the records and documents must be immediately transferred to the competent investigation agency or People's Procuracy for handling in accordance with the law.

The General Department of Taxation (Ministry of Finance) is assigned to direct the Ho Chi Minh City Tax Department and related units to urge and review the implementation of declaration and compliance with tax and invoice laws by Sun Life Vietnam Insurance Company Limited for the expenses stated in the inspection conclusion; thereby handling tax and invoice administrative violations (if any) and guiding and handling similar cases.

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