Tax officials protect 34 'ghost' companies that embezzle state money
Three tax officials were accused of receiving more than 10 billion VND, supporting 34 "ghost" companies to buy and sell VAT invoices so that Thuduc House and many other businesses could embezzle 538 billion VND.
BehaviorTake bribesof Dao Thi Nga (47 years old, former officer of District 1 Tax Department), Ngo Huynh Luy (55 years old, former officer of District 5 Tax Department) and Nguyen Phuong Nam (42 years old, former officer of District 1 Tax Department) were stated by the Ministry of Public Security in the recently issued investigation conclusion.
Authorities determined that, with the assistance of the three defendants above, Luu Thi Ngát (39 years old, Director of Khanh Hung Company) sold VAT invoices to intermediary companies of Trinh Tien Dung (49 years old, currently on the run).
Dung's group then issued VAT invoices to Thu Duc House Development Joint Stock Company - Thuduc House, with Nguyen Vu Bao Hoang as General Director; Saigon Tay Nam Company; Hoang Nam Anh Company to legalize the input. From here, Dung and his accomplices appropriated 538 billion VND in tax refunds from the State.
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| From left to right: Nguyen Vu Bao Hoang, Nguyen Ngoc Truong Chinh, Nguyen Thi Bich Ngoc, Quan Minh Tuan, Nguyen Van Lanh. Photo:Ministry of Public Security |
According to the investigation, from 2016 to 2020, Trinh Tien Dung took advantage of the State's policy (encouraging enterprises to export electronic components with a tax rate of 0%), directing many people to establish 34 "ghost" enterprises in Vietnam and abroad. This group used 17 domestic companies to issue invoices, legalize inputs for electronic components (bought domestically or smuggled), then sold them to enterprises to make export documents and refund VAT, and appropriated money.
Ngát confessed that he had established 12 "ghost" companies. Knowing that the tax authority would inspect and examine companies if they were found to have signs of risk or tax fraud, Ngát and his accomplices approached tax officials to bribe them.
In early 2018, Ngát met with Đào Thị Nga to request to transfer the business registration address of the two companies to Cầu Ông Lãnh ward, District 1 - where Nga was assigned to manage taxes. According to the agreement, Ngát would pay Nga 0.2-0.3% of the total VAT invoice revenue of the "ghost" companies. In return, Nga would not propose that her superiors inspect the business activities of Ngát's companies; give advance notice of tax inspections and audits; give advance notice of companies that could be subject to forced tax collection...
Similarly, with his companies and accomplices in districts 3 and 5, Ngát met with Nguyen Phuong Nam and Ngo Huynh Luy to offer "help" and agreed to share a percentage of the total purchase invoices.
In July 2019, Nga saw that the two companies Ngát operated had unusually high sales, signs of tax fraud, and were at risk of being subject to inspection, and were updated in the automatic risk warning system (TMS)... so she warned. Ngát then transferred the business registration addresses of these two companies to the areas of Nam and Luy to avoid detection.
In the South, when the system detected that 6 "ghost" companies of Ngát might be inspected soon, it reported to move to another location.
Also during this time, the Anti-Smuggling Investigation Department of the General Department of Customs and the Ho Chi Minh City Customs Department discovered the incident and requested the Ho Chi Minh City Tax Department to provide information about the 5 companies run by Ngát. When prosecuted for the actFraudulent appropriation of propertyAccording to Trinh Tien Dung and Thuduc House, Ngát recently confessed to bribing tax officials.
During the investigation, Ngát said he "didn't remember how many times" he gave bribes to three tax officials, only remembering giving Nga about 2.5 billion VND; Luy received about 2 billion and Nam the most with more than 6 billion. However, Nga only admitted to receiving nearly 800 million, Luy admitted nearly 500 million. Because Ngát proactively reported before being discovered, he was exempted from criminal liability for his actions.bribe
In connection with the case, Nguyen Vu Bao Hoang and nearly 30 others were accused of crimes.Lembezzlement;Abuse of position and power to appropriate property;Production of counterfeit goods; Smuggling; Illegal transportation of currency across borders.
Trinh Tien Dung is wanted internationally, the investigation agency has separated this person's actions into another case, when he is arrested, he will be prosecuted.
