Vietnam metro finds tax evasion in Pho 24, Hoan My deals

Thanh Nien News

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Six people related to tax evasion in the acquisition of Pho 24 are required to pay a total of VND16 billion in back taxes. Photo:
The Ho Chi Minh City tax department has ordered seven individuals to pay VND182 billion (over US$8.5 million) after concluding they evaded taxes in their acquisitions of food chain Pho 24 and Hoan My Hospital.

One of them was related to the 2010 acquisition of Hoan My and must pay VND166 billion, Thoi bao Kinh te Saigon Online reported, Saturday, quoting an unidentified tax official.

This official refused to disclose the tax evader’s name.

After under-declaring the value of his or her stake in the hospital by VND500 billion, the unnamed individual paid a mere VND10 billion in capital gains tax in 2010, the newspaper reported.

Following a review of the acquisition of Pho 24, six people were ordered to pay a total of VND16 billion in back taxes, the unnamed official said, without mentioning their names.

In January, HCMC tax officials decided to launch investigations into Pho 24 and Hoan My Hospital among other suspects identified by the municipal People's Committee.

The committee said the suspected firms typically let acquisitions undergo complicated processes and establish branches in different localities, making oversight difficult for tax authorities.

Early last year Jollibee, the largest fast food chain in the Philippines, acquired a 50 percent stake worth $25 million in Pho 24 from Viet Thai International, which had bought the food company for $20 million at the end of 2011.

The Singapore-based Chandler Corp announced a $99-million investment in Hoan My in June, acquiring an 80 percent stake in the hospital.

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