Editor's note: Tax debts, tax evasion, smuggling, appropriation of the Petroleum Price Stabilization Fund... are the dark corners of many petroleum enterprises. The fact that these enterprises with weak business capacity are allowed to slip through is believed to be largely due to the licensing process.
The series of articles "The hidden corners of the petroleum 'giants'" produced by VietNamNet hopes to contribute more voices to improve and filter the petroleum market, to protect consumer rights, the development of legitimate petroleum businesses, and to ensure national energy security.
Tax debt is huge.
According to PV's documents, on January 10, 2020, the tax authority transferred the file of Xuyen Viet Oil Transport and Tourism Trading Company Limited from District 3 Tax Department to Ho Chi Minh City Tax Department for management.
Based on the Tax Debt Tracking Book, by January 2020, Xuyen Viet Oil Trading, Transport and Tourism Company Limited only owed the state budget more than VND 89.57 billion in environmental protection tax.
However, 3 years later, the company's tax debt increased rapidly, nearly 20 times. The tax debt monitoring book up to August 2023 recorded that Xuyen Viet Oil still owed the state budget over 1,528 billion VND. Of which, the environmental protection tax was over 1,244 billion VND. This tax debt arose on the monthly declaration, from October 2021 to July 2022.
Another oil giant with huge tax debts is Hai Ha Waterway Transport Company Limited. To date, Hai Ha owes more than 1,700 billion VND in taxes. Meanwhile, in 2021, this enterprise owed about 815 billion VND; in 2020, it owed about 761 billion VND.
According to the 6-month financial report of Nam Song Hau Petroleum Investment and Trading Joint Stock Company, as of the end of the second quarter of 2023, the unit still owed nearly 1,506 billion VND in taxes and payables to the state, higher than the company's equity (1,262 billion VND).
Demand not to pay, must be forced
Regarding the tax debt of Hai Ha Waterway Transport Company Limited, the General Department of Taxation has issued many documents directing and urging the Thai Binh Provincial Tax Department and the Director of the Thai Binh Provincial Tax Department to apply tax debt enforcement measures to recover for the state budget.
In 2023 alone, the General Department of Taxation issued three documents requesting the implementation of measures to recover Hai Ha's tax debts. On March 13, the General Department of Taxation requested the implementation of measures to recover tax arrears. On May 18, this agency continued to request the Director of the Thai Binh Provincial Tax Department to immediately implement coercive measures to recover Hai Ha's tax arrears.
On May 26, the General Department of Taxation issued an urgent dispatch requesting the Director of the Thai Binh Provincial Tax Department to implement enforcement measures immediately on May 26.
As of September 19, the Thai Binh Provincial Tax Department has applied measures to enforce administrative decisions on tax management against Hai Ha Waterway Transport Company Limited. Specifically: Enforcement by means of withdrawing money from the account, freezing the company's account according to 6 decisions, continuously from June 26 to August 28.
In addition, the Thai Binh Provincial Tax Department also enforced the suspension of invoice use by enterprises according to the decision dated September 12 (effective from September 13, 2023 to September 12, 2024).
On August 30, the Thai Binh Provincial Tax Department sent a notice to the Immigration Department - Ministry of Public Security requesting a temporary suspension of exit for the legal representative of Hai Ha Waterway Transport Company Limited, currently Ms. Tran Tuyet Mai.
Petroleum businesses at high risk of tax and invoice
But the above mentioned petroleum companies are not alone. The situation of environmental protection tax arrears of petroleum businesses tends to increase.
The Ninh Binh Provincial Tax Department has applied strong measures against another petroleum hub, Trung Linh Phat Company Limited and its branch, for owing VND203 billion; at the same time, it has enforced and stopped using invoices in the decision issued in February 2023 and requested to temporarily suspend the exit of the company's legal representative.
In March this year, MSB Bank also announced the seizure of a series of collateral assets of Trung Linh Phat due to breach of debt repayment obligations under the credit contract. MSB seized the collateral assets to recover debt according to the agreement in the signed mortgage contract with 23 real estate assets.
On August 10, the Tan Binh District Tax Department (HCMC Tax Department) sent a document to 63 provincial/municipal tax agencies warning that the Trung Linh Phat petroleum wholesale company branch had high risks regarding taxes and invoices. The company's branch's records have also been transferred to the police.
According to the Tan Binh District Tax Department, Trung Linh Phat has signs of selling goods in a circular manner, the selling enterprise is also the purchasing enterprise. According to the purchase and sale list provided by the enterprise, there are 11 enterprises that are both selling units and purchasing units of Trung Linh Phat - Ho Chi Minh City Branch.
In addition, this enterprise uses VAT invoices for purchases from enterprises that are no longer operating at the registered address and dissolved enterprises. Specifically, there are 6 enterprises that issue sales invoices to Trung Linh Phat Company Limited - Ho Chi Minh City Branch, which is no longer operating at the registered address and has dissolved.
According to the General Department of Taxation, localities with petroleum businesses with large tax debts include: An Giang, Ben Tre, Ca Mau, Can Tho City, Dong Nai, Hai Phong City, Hau Giang, Kien Giang, Lam Dong, Lang Son, Long An, Nam Dinh, Nghe An, Ninh Binh, Phu Tho, Quang Binh, Quang Nam, Quang Tri, Soc Trang, Thai Binh, Thanh Hoa and Ho Chi Minh City.
Some tax departments have not been resolute and have been slow in applying enforcement measures in accordance with the provisions of the Law on Tax Administration and its implementing guidelines. Therefore, on March 13, the General Department of Taxation issued Official Dispatch No. 689/TCT-QLN on implementing measures to recover tax arrears from petroleum businesses.
Then, on May 30, the General Department of Taxation continued to request tax departments to take strong measures against petroleum businesses that owe taxes.
All of the above stories raise a “big question mark” about the responsibility of supervising post-licensing activities for key petroleum enterprises.
Although the above enterprises have large tax debts, in October 2022, the Ministry of Industry and Trade sent a document to the Ministry of Finance requesting to remove difficulties for the petroleum business. In addition to opinions on standard costs, standard profits, etc., the Ministry of Industry and Trade also requested the Ministry of Finance to direct the General Department of Customs to create conditions for key enterprises such as Hai Ha, Nam Song Hau, Xuyen Viet Oil, and Dong Thap Petroleum to clear customs for imported petroleum. However, the Ministry of Finance refused because these enterprises “have not properly and fully implemented the provisions of current laws”. The Ministry of Finance also requested the Ministry of Industry and Trade to consult with the above companies to urgently review, complete and implement the provisions of the law. |
Lesson 2: The petrol price stabilization fund was appropriated, the consequence of 'ignoring' warnings
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