Transferring investigation agency to investigate signs of tax evasion of Thanh Buoi bus company

On the afternoon of November 4, at the regular Government press conference, reporters raised the issue of the press having published many articles about the illegal bus and bus stops of Thanh Buoi bus company over the past 10 years. Recently, Thanh Buoi bus caused an accident that killed 5 people and injured many others while the driver had his license revoked.

“Why has Thanh Buoi bus company been blatantly violating the law for many years without being punished? Public opinion is outraged and is questioning whether or not the state management agencies, the Department of Transport of Ho Chi Minh City and Lam Dong, have loosened their management to allow this bus company to blatantly violate the law?”, the press asked a series of questions.

government press conference.jpeg — Many questions about Thanh Buoi bus company were raised at the Government press conference. Photo: Nhat Bac

Responding to the above question, Deputy Minister of Transport Nguyen Danh Huy said that the traffic accident on National Highway 20 was “very regrettable and extremely serious”. Immediately after the accident, the Prime Minister issued a dispatch directing the handling of the consequences; at the same time, requested investigation, inspection, and examination to handle the responsibilities of organizations, individuals, including State management agencies.

Implementing the Prime Minister's direction, the Ministry of Transport has sent a document requesting the three provinces of Ho Chi Minh City, Lam Dong, and Binh Thuan to request the Department of Transport to immediately inspect the law compliance of Thanh Buoi bus company.

"The Ministry of Transport's viewpoint is to clearly identify and handle any individual or organization that violates the law," Deputy Minister Huy said.

From the Thanh Buoi bus company case, the Deputy Minister of Transport assigned the Vietnam Road Administration to inspect and examine the State management of the Departments of Transport not only in 3 provinces, but all Departments of Transport in 63 provinces and cities.

The purpose of the above inspection is to review whether the legal documents and management of business conditions have been fully issued, whether the sanctions are biased, and whether they ensure deterrence.

Mr. Huy said that within 2 months, the Vietnam Road Administration will fully carry out the tasks assigned by the Ministry of Transport. He also affirmed that he will inform the press when there are results.

"We also closely coordinate with agencies, especially the investigation agency of the Ministry of Public Security, during the investigation and handling process," according to Mr. Huy.

Investigation to clarify the responsibility of Thanh Buoi Company

Also related to Thanh Buoi bus company, at the Government press conference, the press raised the question of whether or not there was tax evasion of hundreds of billions of dong over many years? Who is responsible? Can this amount be recovered?

Deputy Minister of Finance Nguyen Duc Chi said that this company has two branches in Da Lat City (Lam Dong) and Phan Thiet (Binh Thuan). This enterprise declares and pays tax using the deduction method at the tax authority of Ho Chi Minh City, and declares value added tax (VAT) and personal income tax in Lam Dong.

Nguyen Duc Chi 111.jpeg — Deputy Minister of Finance Nguyen Duc Chi talks about signs of tax evasion by Thanh Buoi bus company. Photo: Nhat Bac

Thanh Buoi Company has also registered to use electronic invoices from July 15, 2022. According to Mr. Chi, through monitoring, this enterprise has many activities of additional declaration and adjustment of 24 tax declaration dossiers of many VAT, personal income tax, and corporate income tax declaration periods at the Ho Chi Minh City Tax Department for the years 2019-2022.

After the additional declaration, this company paid an additional 1.99 billion VND in VAT in 2019; and an increase of more than 2.76 billion VND in 2022. With corporate income tax increasing by more than 8.47 billion in 2019; an increase of 3.6 billion in 2020; and an increase of 267 million VND in 2022.

“From October 10 to October 31, 2023, Thanh Buoi Company paid more than VND 21.4 billion to the State budget at the Ho Chi Minh City Tax Department,” Deputy Minister Nguyen Duc Chi informed.

Mr. Chi also said that through inspection and examination, the agencies have proposed to increase revenue by more than 1.43 billion VND due to the company's under-declaration and under-payment of taxes.

“The Ho Chi Minh City Tax Department discovered that Thanh Buoi Company had signs of paying employees a larger amount of money than the income from salaries and wages declared to the tax authorities. This led to tax evasion, reducing the actual amount of tax payable,” said Deputy Minister Nguyen Duc Chi.

Therefore, the Ho Chi Minh City Tax Department has transferred the case to the police for investigation according to the law.

The Ministry of Finance also directed the General Department of Taxation and relevant units to closely coordinate with the investigation agency to clarify the responsibility of Thanh Buoi Company and related individuals for tax evasion (if any).

to an xo.jpeg — Lieutenant General To An Xo, Spokesperson of the Ministry of Public Security.

Also at the press conference, Lieutenant General To An Xo, Spokesperson of the Ministry of Public Security, said that after the Prime Minister's telegram, the Ministry of Public Security directed the Dong Nai Provincial Police to investigate and clarify the cause of the accident caused by Thanh Buoi's car, and at the same time handle the responsibilities of related individuals and organizations.

In addition, the Ministry of Public Security also directed the Ho Chi Minh City Police to promptly receive, classify and resolve reports of crimes related to Thanh Buoi bus company. The Ho Chi Minh City Police have searched the headquarters, branches and related locations of Thanh Buoi in Ho Chi Minh City and Lam Dong to clarify the violations of this company.

"The goal is to ensure traffic safety, reduce traffic accidents, rectify passenger transport business, serve people and businesses in this field, and serve socio-economic development," said General To An Xo.

Mr. To An Xo also said that the Ministry of Public Security is continuing to closely coordinate with the Ministry of Transport and the Ministry of Finance to clarify violations related to Thanh Buoi bus company.

Thanh Buoi Company was fined 91 million VND and had its business license revoked for 3 months.

The Inspector of the HCM City Department of Transport decided to administratively fine Thanh Buoi Company 91 million VND, along with the additional penalty of revoking its business license for 3 months.

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