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Formosa Ha Tinh Steel Company faces tax evasion accusations

access_time May 27,2016 chat_bubble_outline 138 views

Hung Nghiep Formosa Ha Tinh Steel Ltd. in Ha Tinh Province is being required to pay billions in back taxes by the Taxation Department and Customs Department.


 

Formosa Ha Tinh Steel Company faces tax evasion accusations

Hung Nghiep Formosa Ha Tinh Steel Ltd. in Ha Tinh Province.


On May 25, the General Department of Taxation asked Hung Nghiep Formosa Ha Tinh to pay VND255bn (USD11.6m) in back taxes.

The explanation for the charge is unclear. Nguyen Ngoc Du from the General Department of Taxation said the company lacked some construction documents and their documents for contract extension did not match the originals.

The company had paid the money but appealed against the charge.

Previously, Hung Nghiep Formosa Ha Tinh was also accused of transfer-pricing and tax evasion by Ha Tinh Customs Department.

The company has imported many machinery and equipment but declared incorrect prices.

For example, on October 29, 2014, a shipment of machinery was declared to cost USD148,600 while the cost on the receipt from foreign supplier was USD1.4m.

On October 7, 2014, a USD1.63m shipment was imported. But in the registration for tax exemption, it was declared USD1.47m

Pham Tien Thanh from the Customs Department thinks that Formosa was trying to pay less corporate income tax.

The agency reported that they detected false deductions and other violations on 19,497 receipts from Formosa.

The company was also accused of declaring wrong codes for many imported goods between 2010 and 2015 to avoid taxes.

As a result, the company was asked to pay VND5.5bn (USD250,000).

Dtinews

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