'Puppet' director embezzled nearly 35 billion VND in tax refund money

On March 24, Hao (45 years old, residing in Huong Son district) was prosecuted and detained by the Economic Police Department (Ha Tinh Police) for the crime ofFraudulent appropriation of property, according to Article 139 of the 1999 Penal Code.

According to the investigation, in 2011, Hao was asked by Ms. Hau (49 years old, residing in Huong Son district) to be the director of Hao Hung Company, headquartered in Pho Chau town (Huong Son district). The company was introduced as having the function of exporting, but did not trade or sell any products. Hao was named director but in reality was just a "figurehead", all activities were managed by Ms. Hau.

Taking advantage of the State's policy on value-added tax refunds for goods export activities, Ms. Hau directed Hao to sign many fake sales contracts and open hundreds of fake customs declarations at three border gates: Cau Treo (Ha Tinh), La Lay (Quang Tri) and Cha Lo (Quang Binh).

From July 2013 to February 2015, Hao and Ms. Hau contacted Tran Thi Sam (32 years old, residing in Nghe An), spending 4.7 billion VND asking her to help buy 242 value-added invoices for iron, steel, and brick and tile products from 9 companies headquartered in Ho Chi Minh City (total value of goods 235 billion VND, value-added tax over 23 billion VND).

With valid invoices for input goods, Hao submitted documents to the Ha Tinh Tax Department to receive a VAT refund. In two years, Hao and Ms. Hau bypassed many state agencies in Ha Tinh, made 9 tax refunds, and appropriated nearly 35 billion VND.

Previously, in 2019, Ms. Hau and Sam were prosecuted and detained by the authorities for the crime.Fraudulent appropriation of propertyandIllegal trading of invoices and documents for payment to the state budget.