Ministry to investigate alleged tax evasion in acquisitions

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The Ministry of Finance will send inspectors to probe the tax payments made in Ho Chi Minh City corporate acquisitions after the municipal People's Committee reported losses in tax revenues from such activities.

The committee listed acquisitions under suspicion, including those of food chain Pho24 and Vietnam's largest hospital business Hoan My Medical Corp.

Early last year the Philippines' Jollibee Foods Corp acquired a 50 percent stake worth US$25 million in Pho24 from the Viet Thai International JSC, which had bought the food company for $20 million at the end of 2011.

The Singapore-based Chandler Corp announced in June a $99-million investment in Hoan My by acquiring 80 percent of the latter's stake.

The suspicious acquisitions underwent complicated processes, the committee reported.

It also said the businesses established their branches in different localities, which caused management difficulties to tax authorities.

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