Vietnam gold shop sues tax agency for "baseless' back tax demand

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A gold shop in the southern province of Ca Mau has filed a suit against the tax agency after the latter decided to collect VND60 billion (US$2.85 million) in alleged back taxes, saying it paid exactly what the agency had asked for.

Nguyen Binh Khiem, owner of Hoang Khiem gold shop, filed the suit against the Dam Doi District tax office, saying the decision was "baseless."

In his appeal, Khiem said in 2008 he had urged the agency to tax the shop's actual income rather than collect a fixed monthly tax, but it had refused.

In 2010 he had reported sales had increased but the agency did not respond to this and continued to tax at the old fixed rate, he said.

Last December the Ca Mau Province Inspectorate found that Hoang Khiem had not reported an additional VND7.71 trillion ($366.6 million) in sales between January and November 2010.

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Yet the shop was allowed to pay the fixed monthly tax by Le Thanh Du, chief of the district tax office, the inspectors said.

In March this year Du received a warning for failing to properly appraise the shop's operations, enabling it to evade tax

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