Head of tax department received nearly 400 million to protect 'invoice trading boss'

Among the 13 defendants recently prosecuted by the People's Procuracy of Quang Ninh province, defendants Nguyen Dinh Duong - former Head of the Tax Department of Cat Hai district (Hai Phong) and Do Thanh Hoai - former employee of the Tax Department of Cat Hai district were prosecuted for the crime of "Receiving bribes" as prescribed in points c and d, clause 2, Article 354 of the Penal Code.

These two defendants are related to the case of Truong Xuan Duoc (born in 1971, residing in Hai Phong) and his accomplices "Illegal trading of invoices and documents for payment to the State budget".

Head of tax department accepts "protection" of businesses

According to the indictment, around August 2021, Truong Xuan Duoc learned that Nguyen Dinh Duong was assigned and appointed as Head of the Cat Hai District Tax Department.

Due to a previous acquaintance, Duoc went to Cat Hai Tax Department to ask Duong for help in tax management for some companies that Duoc would establish to illegally buy and sell invoices in Cat Hai district and Duong agreed.

Nguyen Dinh Duong (blue shirt, holding white cloth) was arrested by the police on the evening of March 13, 2023.

After that, Truong Xuan Duoc established Phuong Bac Transport Trade Development Company Limited (registered headquarters in Van Phong commune, Cat Hai district) to illegally buy and sell invoices.

During the first tax declaration period of Phuong Bac Transport Company (tax declaration period of the third quarter of 2021), Do Thanh Hoai, Deputy Head of the Tax Inspection Team of Cat Hai District Tax Department, reported to Duong that Phuong Bac Transport Company was newly established and declared tax for the first time but the value of goods and services sold was unusually high (nearly 25 billion VND, excluding VAT).

At this time, Duong told Hoai that Phuong Bac Transport Company was the company that Duoc established, managed, and operated to illegally buy and sell invoices and directed Hoai to facilitate tax management activities. Duong gave Hoai his phone number and directed Hoai to call Duoc to the Cat Hai District Tax Department to handle the unusually high tax declaration of Phuong Bac Transport Company.

When Duoc and his wife Nguyen Thi Ngoc Anh came to Duong's office at the Cat Hai District Tax Department, Duong called Hoai to instruct Hoai to guide Duoc and Ngoc Anh on how to declare taxes so that the authorities would not detect their illegal purchase and sale of invoices.

At the same time, following Duong's instructions, Hoai discussed and requested the couple Duoc and Ngoc Anh to carry out 3 contents: First, declare monthly tax on transactions of goods and services sold lower than the actual total number of illegal invoices issued to customers from 3.4 billion VND/month to avoid suspicion, because Cat Hai district is an island area, far from the mainland, business is difficult so it cannot be declared high.

Second, each newly established enterprise operating illegally in the purchase and sale of invoices in Cat Hai, Duoc and Ngoc Anh districts must pay a fee of 50 million VND.

Third, monthly expenses for Duong and Hoai are at the rate of 3 million/1 billion VND of the transaction value of goods and services sold as recorded on the invoice (excluding VAT).

Hoai also requested Duoc and Ngoc Anh to adjust and submit the supplementary tax declaration for the third quarter of 2021 of Phuong Bac Transport Company to reduce it according to the above request.

The couple Duoc and Ngoc Anh agreed with Hoai's requests and assigned accountant Vu Thi Hien to adjust and submit the supplementary declaration for the third quarter of 2021 of Phuong Bac Transport Company. The value of goods and services sold after adjustment was more than 8 billion VND (excluding VAT).

During the meeting at Duong's office, Duoc and Ngoc Anh gave Duong an envelope containing 50 million VND and Hoai an envelope containing 20 million VND as thanks.

Starting from October 2021, the couple Duoc and Ngoc Anh established Thang Long Hai Phong Construction Joint Stock Company and Nguyen Gia Construction Trade Development Company Limited (same address in Van Phong commune) to illegally buy and sell invoices in Cat Hai district and pay the expenses to Duong and Hoai according to the agreement.

Every month, under Duong's direction, Hoai contacted Ngoc Anh to receive the expense money. Ngoc Anh directly monitored the value of goods and services transactions, calculated the amount of money needed according to the agreement, and reported back to Duoc to get the money to give to Hoai.

Received 362 million from "invoice trading boss"

The investigation determined that from August 2021 to August 2022, Truong Xuan Duoc and Nguyen Thi Ngoc Anh gave Nguyen Dinh Duong and Do Thanh Hoai a total of VND 362 million, including VND 70 million in envelopes received at Duong's office; VND 100 million to establish two companies (Thang Long Hai Phong Company, Nguyen Gia Company) and VND 192 million in expenses at the rate of VND 3 million/VND 1 billion of the transaction value of goods and services sold as stated on the invoice (excluding VAT) according to the previously agreed agreement.

Regarding the amount of money received above, Duong and Hoai stated that Duong received 50 million VND and Hoai received 20 million VND, which was the envelope money received at Duong's office during the meeting with Duoc and Ngoc Anh at the Cat Hai District Tax Department.

Regarding the remaining 292 million VND, Hoai managed and used it to receive guests and cover general expenses of the Cat Hai District Tax Department under Duong's direction, but there were no documents or records to track it.

On the evening of March 13, 2023, Quang Ninh Provincial Police searched his home and arrested Nguyen Dinh Duong to investigate bribery. On the same day, the police also arrested Do Thanh Hoai for the same act.

In this case, the Investigation Security Agency of Quang Ninh Province Police prosecuted and temporarily detained Truong Xuan Duoc (born in 1971), Nguyen Thi Ngoc Anh (born in 1979, Duoc's wife), and Truong Van Nam (born in 1990), all residing in Hai Phong City.

Before being arrested, around October 2022, Duoc and his wife learned that Truong Van Nam (the nephew of Truong Xuan Duoc) was arrested and searched by the Quang Ninh Provincial Police Security Investigation Agency in connection with the illegal trading of invoices, while also investigating and verifying the company managed and operated by Duoc and Ngoc Anh.
Fearing being prosecuted for his illegal invoice trading, Duoc fled and directed Ngoc Anh to meet Mr. Do Huu Ca - former Director of Hai Phong City Police (retired, who had a close relationship with Duoc) to ask for his release.
From the end of October 2022 to around December 2022, the couple Truong Xuan Duoc and Nguyen Thi Ngoc Anh (born in 1979) visited and gave a total of 35 billion VND to Mr. Do Huu Ca at his private home in Kenh Giang commune 4 times to ask for help to avoid criminal prosecution for Duoc by Quang Ninh Police for illegal invoice trading.
However, Mr. Ca stated that at that time he had been retired for many years, had no more relationships, was no longer able to exonerate Duoc, and did not influence or use the 35 billion VND to exonerate Duoc.
The former Director of Hai Phong City Police also did not admit to receiving money to clear Duoc's name, but the money was brought by Duoc and Ngoc Anh to Mr. Ca's living room and first floor bedroom.
Mr. Do Huu Ca was prosecuted and temporarily detained by the Investigation Security Agency of Quang Ninh Provincial Police on February 18, 2023 for the crime of "Fraudulent appropriation of property" and was prosecuted by the People's Procuracy of Quang Ninh Province for the same crime.

Nguyen Hue

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