Arrest of former Chairman of Asanzo Group Pham Van Tam

On June 24, after being prosecuted for tax evasion, Mr. Pham Van Tam (former Chairman of the Board of Directors of Asanzo Group Joint Stock Company) and Mr. Pham Xuan Tinh (legal representative, Director of Asanzo Group Joint Stock Company) had their preventive measures changed from being banned from leaving their place of residence to being temporarily detained.

Previously, the Ho Chi Minh City People's Procuracy approved the decision to prosecute by the Investigation Police Agency, Ho Chi Minh City Police on initiating the case and prosecuting the accused Pham Van Tam and Mr. Pham Xuan Tinh for the crime of Tax Evasion.

The investigation agency determined that Mr. Tam directed Pham Xuan Tinh to sign Principle Contracts with Viet Tai Trading Investment Company Limited, An Thien Production Investment Company Limited, and Tran Thoan Import-Export Investment Company Limited.

Then, he did not issue invoices and left out the accounting books related to sales revenue for Asanzo Refrigeration Company Limited of Asanzo Group Corporation and used illegal invoices to account for goods and input materials in activities that generate tax obligations, with the aim of evading the tax payable of more than 15.7 billion VND.

Previously, on October 16, 2019, the Ho Chi Minh City Tax Department signed a decision to transfer the case file of an administrative violation with signs of crime to prosecute criminal liability related to Asanzo Group.

In the transfer file to PC03, the Ho Chi Minh City Tax Department said that based on accounting books and documents and invoices provided by Asanzo Group, in 2019, this enterprise purchased air conditioners from Tran Thoan Import-Export Investment Company Limited, An Thien Production Investment Company Limited, and Viet Tai Trading Investment Company Limited.

The Tax Department's inspection team discovered that Asanzo Group had signed a processing contract with VTB Information Technology JSC. On September 16, the inspection team coordinated with the Economic Security Department (Ho Chi Minh City Police) to verify at VTB Company and recorded that this company had received processing from Asanzo Group.

Based on accounting books, invoices, verification results from VTB and Asanzo's explanation, Asanzo Group assigned VTB to process and assemble a part and directly process and assemble the finished product "air conditioner", then sell it to Asanzo Refrigeration Company Limited. Tran Thoan Company also issued invoices directly to Asanzo Refrigeration Company Limited for the product "air conditioner".

Asanzo Group did not issue invoices and left sales revenue to Asanzo Refrigeration Company Limited off the accounting books. Asanzo Group also did not declare special consumption tax and value added tax (VAT).

According to the tax authority, the act of illegally using invoices (invoices stating the item is air conditioner but the actual content is air conditioner components) to account for input goods as finished products and declare taxes is a commercial activity aimed at evading special consumption tax.

According to the tax authority, not only did the output VAT and deducted input VAT declarations not comply with regulations, this enterprise also violated the declaration of deductible expenses to determine taxable income for corporate income tax. This enterprise also did not deduct, declare and pay personal income tax according to regulations; did not issue invoices when selling goods or providing services...

Regarding related-party transactions, Asanzo also did not declare according to the appendix attached to the corporate income tax finalization declaration according to Decree 20/2017. Therefore, the tax authority believes that this enterprise has many aggravating circumstances such as repeated administrative violations, acts of evading and concealing administrative violations, administrative violations with large quantity or value...

According to the file transferred to the investigation agency, the tax authority said that Asanzo Group used input invoices with signs of recording higher transaction values ​​for the purpose of tax evasion.

Accordingly, the companies that are no longer operating at the registered address as notified by the tax authority are mainly represented by Asanzo Group employees as legal representatives to import goods, electronic components, household appliances, and air conditioners for sale to Asanzo Group and its subsidiaries.

It is worth noting that these companies have signs of recording higher transaction values ​​with the purpose of evading VAT and corporate income tax. Specifically, after Asanzo Group and its companies transferred money to the above-mentioned companies, the money was transferred back to Asanzo Group and its companies.

In particular, Ms. Nguyen Thi Hien (Mr. Pham Van Tam's wife) and individuals who are employees at companies belonging to Asanzo Group withdrew a total amount of more than 507 billion VND.

Citing the case of Tran Thoan Company, the tax authority said that after receiving money from Asanzo Group and Asanzo Refrigeration Company Limited, Tran Thoan Company paid foreign customers, paid companies on the list that are no longer operating at the registered address and transferred money to Asanzo Investment Joint Stock Company (belonging to the Asanzo system). Notably, Ms. Hoang Thi Thu Trang - an employee at Asanzo Group withdrew cash at Tran Thoan Company.

Similarly, through verification of bank accounts, it was shown that after money was transferred from Asanzo Group and its subsidiaries to the account of Nhat Nam Production Company Limited (District 1, Ho Chi Minh City), Ms. Nguyen Thi Hien and Ms. Nguyen Kim Thanh Nguyet (also employees at Asanzo Investment Joint Stock Company) withdrew money from Nhat Nam Company.

Ms. Hien and Ms. Nguyet also withdrew money from Asanzo Telecommunications Joint Stock Company and Asanzo Media Company Limited (belonging to Asanzo Group).

These are just 2 of dozens of companies that have transactions with Asanzo Group and businesses belonging to this group that have the phenomenon of input invoices higher than the transaction value for the purpose of tax evasion.

Money transfer and withdrawal activities also took place similarly. After money from Asanzo Group and its subsidiaries was transferred to the supplier of goods and components, a portion of the money was withdrawn by individuals who were employees of Asanzo Group.