At a press conference on the evening of March 2, Lieutenant General To An Xo - spokesman for the Ministry of Public Security, provided more information about the case related to Phuc Son Group, which was prosecuted at the end of February.

Lieutenant General To An Xo said that Phuc Son Group Joint Stock Company has been operating since 2004, with a moderate scale, operating at the district level, in the field of construction and installation. Since 2015, this company has grown very strongly, receiving many projects from North to South. This company has 21 projects, with a total investment of over 40 trillion VND.

The investigation agency initially examined two projects in Vinh Phuc and found that Phuc Son Group Joint Stock Company left the books, did not declare finances, evaded taxes, causing losses to the state budget of over 640 billion VND.

However, in the latest tax debt notice in February 2024 of the Vinh Phuc Provincial Tax Department, this company was not on the list of the largest tax debtors.

Phuc Son Group.jpg
In October 2016, Khanh Hoa Provincial People's Committee reclaimed more than 62.3 hectares of land at Nha Trang airport and handed it over to Phuc Son Group Joint Stock Company (Phuc Son Company), chaired by Mr. Nguyen Van Hau, to implement the Nha Trang urban, service, financial and tourism center project. Photo: Xuan Ngoc

Of which, Vinh Yen Housing Development Company Limited has the largest tax debt of more than 48 billion VND. Coming in second is Vinh Phuc Textile and Garment Investment Joint Stock Company with a tax debt of more than 25 billion VND; Vinh Phuc Housing Development and Trading Joint Stock Company owes more than 17.4 billion VND; Ba Hien Joint Stock Company owes more than 17.08 billion VND...

Thus, it is very possible that leaving things off the books and not declaring finances... is one of the reasons explaining why this company has no tax debt in Vinh Phuc.

According to the investigation of PV.VietNamNet, the tax debt mentioned is up to "tens of thousands of billions" related to the 12,000 billion VND to fulfill the financial obligations of Phuc Son Group in the Nha Trang Urban - Commercial - Financial - Tourism Center project built on the land of the old Nha Trang airport.

Previously, in August 2022, the People's Committee of Khanh Hoa province issued a document requesting Phuc Son Group to urgently pay nearly VND 12,000 billion to fulfill financial obligations at the Nha Trang Urban - Commercial - Financial - Tourism Center project. However, the enterprise said that this document did not ensure the provisions of current law because the fulfillment of financial obligations must be based on the results of land valuation, based on the principle of equal value of BT projects and the notice of the tax authority.

At the press conference on March 2, Mr. To An Xo said that this incident showed that the responsibility of the manager was not to control the financial declaration activities of Phuc Son Group Joint Stock Company.

“This company lacks inspection and supervision from professional agencies. The company does not fully fulfill its tax obligations but is still operating,” said Mr. To An Xo.

Who is the Chairman of Phuc Son Group who has just been arrested, and what is the level of violation? Mr. Nguyen Van Hau - Chairman of the Board of Directors of Phuc Son Group Joint Stock Company who has just been prosecuted and temporarily detained is a real estate tycoon from Vinh Phuc.