Proposal to review tax evasion in capital transfer of Xuan Thien solar power project

The General Department of Taxation has just issued a document requesting the Dak Lak Tax Department to review the behavior of businesses evading taxes in capital transfers.

Ea Sup 3 solar power project of Xuan Thien Group in Ea Sup district, Dak Lak - Photo: V.D.

On the afternoon of November 6, Mr. Bui Van Chuan - Director of Dak Lak Tax Department - said that he had reported on the review of tax evasion in the transfer of capital of solar power projects at the request of the General Department of Taxation.

Only pay tax when checked for signs of tax evasion

Previously, the General Department of Taxation had issued a document requesting the Dak Lak Tax Department to review the dossier and issue a decision to fine Ea Sup 3 Joint Stock Company (belonging to Xuan Thien Group) in accordance with regulations.

According to the General Department of Taxation, on December 27, 2022, the Director of the Dak Lak Provincial Tax Department issued a decision to fine Ea Sup 3 Company for false declaration leading to tax arrears, due to submitting tax declaration documents more than 90 days after the deadline "is not in accordance with regulations".

According to the penalty decision, the Dak Lak Provincial Tax Department has administratively sanctioned Ea Sup 3 Joint Stock Company for many acts, including penalizing the personal income tax declaration on behalf of the company's shareholders in the capital transfer.

Specifically, on February 20, 2020, Mr. Nguyen Van Thien - Chairman of the Board of Directors of Xuan Thien Group - transferred 706,000 shares worth over 7 billion VND to Mr. Vu Canh Tuan - General Director of Xuan Thien Group - but did not directly declare personal income tax.

On March 25, 2020, Ea Sup 3 Joint Stock Company changed its shareholder list but did not declare personal income tax from capital transfer on behalf of Mr. Thien.

Similarly, on September 16, 2021, Nguyen Van Thuy - Vice Chairman of the Board of Directors of Xuan Thien Group - transferred to Mr. Pham Van Tuat more than 38.1 million shares worth more than VND 381 billion at Ea Sup 3 Joint Stock Company but did not directly declare taxes.

On the same day, September 16, 2021, Ea Sup 3 Joint Stock Company changed the list of shareholders but did not declare personal income tax from capital transfer on behalf of Mr. Thuy.

Dak Lak Tax Department is being asked to review records showing signs of tax evasion at Xuan Thien Group - Photo: V.D.

On August 26, 2022 (more than 2 years and 6 months later - PV), the tax inspection team of Dak Lak Provincial Tax Department inspected Ea Sup 3 Company. On October 17, 2022, Ea Sup 3 Joint Stock Company submitted personal income tax declarations on behalf of Mr. Thien (more than 7 million VND) and Mr. Thuy (more than 381 million VND).

According to the General Department of Taxation, Ea Sup 3 Joint Stock Company submitted tax declaration documents after the tax authority decided to inspect the taxpayer's headquarters. Not only that, it was not until May 18, 2023 that Mr. Thien paid an additional nearly 5 million VND and Mr. Thuy paid more than 46 million VND in late tax.

According to the General Department of Taxation, the act of submitting a tax declaration after 90 days from the deadline for submitting the declaration must be punished for "tax evasion" according to the 2019 Tax Administration Law. Therefore, the decision of the Dak Lak Tax Department to penalize Ea Sup 3 Joint Stock Company for false declaration leading to tax arrears due to submitting the tax declaration after 90 days from the deadline is not in accordance with regulations.

Responsibility belongs to the Director of Dak Lak Provincial Tax Department and organizations and individuals involved in advising on the issuance of penalty decisions.

What did the Director of Dak Lak Tax Department say?

Regarding this, Mr. Bui Van Chuan said he had made an explanatory report and a review report to send to the General Department of Taxation.

"The General Department of Taxation requested a review, but the nature of the case was false tax declaration, not tax evasion as many people understand," said Mr. Chuan.

According to him, regarding this case, on June 13, 2024, Dak Lak Tax Department sent an official dispatch following the recommendation of the State Audit regarding Ea Sup 3 Joint Stock Company to Dak Lak Provincial Police.

The above document also cited the content of the Dak Lak Provincial Police Investigation Agency's written response, which concluded that "there are no signs of crime related to the case of Ea Sup 3 Joint Stock Company".

However, according to Mr. Chuan, the General Department of Taxation still believes that the Dak Lak Tax Department's only sanctioning of Ea Sup Joint Stock Company for 3 acts of false declaration leading to tax arrears, due to submitting tax declaration documents more than 90 days after the deadline, "is not in accordance with regulations".

Therefore, the General Department of Taxation requests the Dak Lak Tax Department to review the dossier on the decision to impose a fine on Ea Sup 3 Joint Stock Company (dated December 27, 2022) for handling in accordance with regulations. In case of detecting criminal acts, the Dak Lak Tax Department will transfer the dossier to the competent authority to conduct proceedings for handling in accordance with regulations.

On December 27, 2022, the Dak Lak Provincial Tax Department issued a decision to fine Ea Sup 3 Company more than 1.3 billion VND for many acts of false declaration leading to a lack of tax payable. Of which, more than 77 million VND was for false declaration leading to a lack of personal income tax from the transfer of the above two individuals.

In addition, Ea Sup 3 Company is forced to pay the full amount of tax arrears to the budget of more than 3.2 billion VND and late tax payments of nearly 480 million VND. The total amount of arrears, fines for administrative violations of tax and invoices, and late tax payments is more than 5 billion VND.

Source: https://tuoitre.vn/de-nghi-xem-xet-hanh-vi-tron-thue-trong-chuyen-nhuong-von-du-an-dien-mat-troi-xuan-thien-20241106161411738.htm