Vietnam Air Petrol Company (Vinapco), a subsidiary of Vietnam Airlines, has been found to have committed frauds tax evasion worth billions of dong.
Vinapco’s fake Chinese partner
In early July, Vinapco made seven customs declaration to re-export 422,000 litres of petroleum worth VND8 billion (USD383,509) to China but actually sold the petrol domestically.
Nguyen Van Tho, from the General Department of Vietnam Customs’ Anti-smuggling and Investigation Department, told Dantri/DTiNews on November 23 that the agency has been speeding up procedures to prosecute Vinapco for trade fraud and tax evasion.
According to a reliable source, the department detected these activities in early July, when Vinapco made seven customs declaration at Haiphong Department of Customs to re-export 422,000 litres of 92 octane gasoline through Ta Lung border in Cao Bang Province to a Chinese firm called Beihai Seafood and Oil Supply Limited Company.
The company submitted two customs declarations on July 7, two on July 9, and three on July 10 for 're-export'. However, the company carried out domestic fuel sales on the evening of July 10.
They did not re-export the fuel through the Ta Lung border gate as declared but sold domestically in four provinces of Hai Duong, Thai Binh, Phu Tho and Thai Nguyen.
In fact, the Chinese firm that was declared on the re-export documents does not exist.
After red flags were raised, the department started investigating in late July.
After becoming aware of the investigation, the firm allegedly borrowed petrol from other companies to offset their missing inventory. They kept seals and glued them back together, continuing to seek approval from customs to re-import the fuel because their Chinese partner had refused delivery.
Haiphong customs allowed them to re-import the fuel.
It is suspected that the firm has evaded VND2.5 billion worth of import, excise and value added taxes, excluding several fees.
Tho said that in May the company temporarily imported 5,463 tonnes of gasoline from Singapore and then re-exported 2,330 tonnes to a Chinese firm by sea before the Government had issued a ban on re-export via sea.
The customs agency was seeking approval to confiscate the fuel being exported to dummy Chinese partner, only to be sold domestically. This could leave the company open to prosecution for tax evasion.
After the Government issued a regulation on banning temporary imports and re-export by sea, the firm moved to road transportation.
To date, the investigative agency has gathered enough evidence to bring charges against Vinapco for smuggling under the current laws and regulations.
The agency is speeding up prosecution procedures on the case and is in the process of sending documents to the Ministry of Public Security for further investigation.
