HCMC – Nguyen Vu Bao Hoang, general director of Thuduc Housing Development Corporation (Thuduc House), and many of his subordinates have been arrested for allegedly falsifying value-added tax (VAT) refund documents to appropriate nearly VND366 billion.
Investigators of the Ministry of Public Security yesterday, November 25, prosecuted and detained Nguyen Vu Bao Hoang; Nguyen Ngoc Truong Chinh, vice general director of Thuduc House; Nguyen Thi Bich Ngoc, head of the Import-Export Division at Thuduc House and director of Thuduc Wood JSC; Quan Minh Tuan, head accountant at Thuduc House; and Nguyen Van Lanh, director of An Lanh Phat Trading Company and Binh Thanh Company, for allegedly committing fraud to appropriate property as stipulated in Article 174 of the Penal Code.
The movement was part of an investigation into a group of people who were accused of falsifying documents for appropriation of assets through the refund of VAT in HCMC, southern provinces and at some relevant agencies.
The investigators have issued an international arrest warrant for Trinh Tien Dung, aged 48, who was allegedly the mastermind of the appropriation case. Also, they are taking measures to take back many State assets.
According to investigation results, Trinh Tien Dung had arranged for many individuals at home and abroad to use fake identity cards to establish hundreds of businesses in Vietnam. These people then falsified signatures to open bank accounts, prepare contracts to trade, import and export CD-ROMs containing software and electronic parts such as counterfeit and used products with companies in the U.S., Hong Kong, Cambodia, Singapore, Malaysia, aimed at smuggling and trafficking more than US$53.5 million to foreign countries.
The group was also accused of taking advantage of the State policies on encouraging companies to export electronic parts with the tax rate of 0%; producing documents to trade domestically and export electronic components with a huge difference in value; conspiring with people working at the Saigon Southwest Trading JSC to make VAT refund documents to appropriate over VND153 billion from the Tay Ninh Province Tax Department.
Besides, they conspired with those at Thuduc House to appropriate nearly VND366 billion from the HCMC Tax Department through faking VAT refund documents.
The investigators have detained Nghiem Nhat Nam, general director of the Saigon Southwest Trading JSC, and Nguyen Thuy Quyen, head of Sales Department at this company.
Overall, in this case, the investigators have prosecuted 21 for allegedly committing multiple offenses such as smuggling; illegally transporting goods and money across borders; using fake stamps or documents of State agencies; swindling to appropriate assets and abusing of power for appropriation of assets.
As for Thuduc House, it operates in the fields of real estate, finance, fuel among others. In late 2020, the HCMC Tax Department withdrew refunded VAT from the company and fined it for making slow tax payments for 2018 and the first half of 2019, with total amount of nearly VND400 billion.
In response, Thuduc House said it did not agree with the HCMC Tax Department’s decisions and sued the department to the HCMC People’s Court, requesting the court to consider revoking the decisions mentioned above. The company reportedly is also working with competent agencies on the issue.
One month ago, Nguyen Vu Bao Hoang and two deputies general director of Thuduc House had registered to sell off their shares in the firm reportedly for personal reasons.