Deputy PM orders Sabeco’s back tax review

Created 12 May 2018
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HCMC - Deputy Prime Minister Vuong Dinh Hue has told the State Audit Office of Vietnam (SAV) to review its conclusions on back tax and fines imposed on Saigon Beer, Alcohol and Beverage Corporation (Sabeco), the website of Phap Luat newspaper reports.

Kết quả hình ảnh cho Deputy PM orders Sabeco’s back tax review

The order comes after the Deputy PM’s meeting on May 2 with representatives of SAV, the Ministries of Industry-Trade, Finance and Justice, the Government Inspectorate, the Government Office, Sabeco and Hanoi Alcohol Beer and Beverage Corporation (Habeco) over special consumption tax debt owed by Sabeco and Habeco.

Hue requested SAV to review its conclusions on special consumption tax debt, fines on tax payment delays and violations of tax laws in Sabeco and Habeco, and the rights and duties of their shareholders. SAV will later report results to the PM and relevant ministries, agencies and enterprises.

The Ministries of Finance and Justice and the Government Inspectorate were told to swiftly comment on SAV’s conclusions. The Ministry of Industry and Trade was tasked with making a report on their comments and send it to the PM prior to May 10.

SAV earlier sent results of its audits of Sabeco’s financial reports and activities related to the management and use of State capital and assets in 2016. The results showed Sabeco had made more than VND2.9 trillion (US$127.3 million) in profit by 2016.

At the time, the Government held an 89.59% stake in Sabeco, so SAV proposed collecting VND2.5 trillion in undistributed profit of the Government as a majority shareholder of the corporation.

According to a representative of the Finance and Business Renovation Department under the Ministry of Industry and Trade, the retained profit would be used to fulfill special consumption tax obligations and administrative penalties concerning tax obligations.

Sabeco had written to the HCMC Tax Department stating that it paid VND4.7 trillion in special consumption tax to the department in 2016 under the department’s direction.

Sabeco has also agreed to pay over VND2.79 trillion for the State budget as requested by SAV and written to the HCMC Tax Department seeking advice on how to proceed with the payment.

The Ministry of Industry and Trade is instructing Sabeco to pay the tax in line with the law and SAV’s requirements.

The Vietnam Association of Financial Investors (VAFI) has warned that Sabeco’s payment of VND2.5 trillion for the State budget might cause serious consequences. VAFI has written to Deputy PM Hue, the Ministry of Finance and SAV as saying that based on the 2014 Enterprise Law, the firm could not pay dividends to shareholders without its board giving prior approval.

If Sabeco pays VND2.5 trillion for the State budget, Sabeco board members and senior executives of the Ministry of Industry and Trade involved in the problem would violate the Enterprise Law and compensate for losses of thousands of Sabeco’s investors.

 

Source: ThesaigonTimes

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