Proposal to prosecute the General Director and his wife of Thanh An Hanoi Company Limited

The Ministry of Public Security's Investigation Police Agency has just issued an investigation conclusion, proposing to prosecute 38 defendants in the case of Violating accounting regulations causing serious consequences; Illegal printing, issuance, and trading of invoices and documents for state budget payment occurring at Thanh An Hanoi Company Limited, Danh Medical Equipment Company Limited, Trang Thi Medical Equipment Company Limited and related units.

Among the 38 defendants, Nguyen Dang Thuyet (General Director of Thanh An Hanoi Company Limited), Nguyen Nhat Linh (Deputy General Director of Thanh An Hanoi Company Limited), Nguyen Quy Khai (Director of Danh Medical Equipment Company Limited) were proposed to be prosecuted for the crime of Violating accounting regulations causing serious consequences.

According to the investigation, Nguyen Dang Thuyet established and operated 3 companies including Thanh An Hanoi Company Limited, Danh Medical Equipment and Trang Thi Medical Equipment.

All three companies have branches in Ho Chi Minh City, Da Nang and Can Tho to distribute medical supplies and equipment to hospitals and medical facilities nationwide.

From 2017 to 2022, with the purpose of concealing actual profits, reducing taxes payable to the State to gain illegal benefits, Nguyen Dang Thuyet and his wife Nguyen Nhat Linh directed their subordinates to establish and use two accounting systems, falsify data reported to tax authorities, sign fake sales contracts, buy input invoices from companies/individual businesses to increase costs, thereby reducing taxes payable to the State.

The management of the two accounting systems mentioned above was directly performed by Nguyen Dang Thuyet, who directed the accountants of Thanh An Company. In particular, the defendant Do Thi Hoa, Chief Accountant of this enterprise, controlled all actual revenue and expenditure activities (recorded on the internal accounting software) and tax declaration data (incorrect data) of all 3 companies.

Defendant Nguyen Thi Hoa, Accounting Supervisor of 3 companies, was responsible for planning and estimating the amount of tax payable for the year, and this was a false figure, recorded as an increase in input costs from purchasing fake invoices to reduce tax payable.

Defendant Bui Thi Mai Huong and Nguyen Thi Hoa were assigned by Thuyet to manage digital signatures (TOKEN) to make tax reports and issue electronic invoices. After preparing tax reports and financial reports, the business leadership group will approve them and subordinates will use digital signatures to send them to the tax authorities.

To legalize the case, the defendants purchased fake invoices from companies/individual businesses from 32 sources and then shared the profits. From 2017 to 2022, this ring purchased 19,167 fake invoices (the items were medical supplies) from 110 companies/individual businesses with a total pre-tax value of VND3,689 billion, VAT of more than VND75 billion. Of which, the cost of purchasing invoices was VND257 billion.

The accounting for 19,167 fake invoices (without goods) purchased from 110 companies/business households was updated by the defendants into the tax accounting software (tax accounting book system) to increase costs and reduce taxes payable; the cost of purchasing fake invoices and other actual receipts and payments were monitored by Do Thi Hoa on the internal accounting software.

Police investigated the business results of the three companies in the period 2017 - 2022, showing that the total assets and total capital were more than VND 8,542 billion; total pre-tax profit was VND 562 billion; post-tax profit was VND 448 billion; total corporate income tax paid to the budget was more than VND 114 billion.

However, the documents extracted from the internal FAST software system at Thanh An Ha Noi Company, Danh Medical Equipment Company, and Trang Thi Medical Equipment Company are different. Specifically, these 3 enterprises have total assets and total capital of more than 12,828 billion VND; total pre-tax profit of 2,655 billion VND; total after-tax profit of 2,563 billion VND.

Thus, there is a difference between public and internal books, specifically total assets and capital increased by 4,286 billion VND; pre-tax profit increased by 2,092 billion VND.

During the investigation, the Hanoi Tax Department's auditors issued a conclusion showing that regarding value added tax, the above 3 companies used 19,167 fake invoices to declare deductions of value added tax on purchased goods and services, leading to a reduction in payable amounts, causing a loss to the budget of more than 62 billion VND.

Regarding corporate income tax, the use of fake invoices purchased from companies and business households for accounting purposes when preparing financial reports and determining the amount of tax payable by the three above-mentioned enterprises has reduced the tax amount by more than VND680 billion. Therefore, the defendants' actions caused a total loss of more than VND743 billion.

During the investigation, the group of defendants paid more than 93 billion VND to remedy the consequences of the case. The police also seized 18 real estate properties of the defendants; froze a number of accounts with a total balance of more than 2.3 billion VND.