Saigon VRG Investment (SIP) revenue from land and factory rental, fined and taxed 916 million

Saigon VRG Investment (SIP) was fined and had to pay back taxes of VND916 million.

Saigon VRG Investment JSC (Code: SIP) has just announced that it has received a decision on administrative sanctions from the General Department of Taxation.

Specifically, Saigon VRG Investment has made false declarations leading to a shortage of tax payable, and false declarations that do not lead to a shortage of value added tax payable. In particular, the company has also committed administrative violations many times, which is an aggravating circumstance.

Saigon VRG Investment JSC (SIP), which derives most of its revenue from land and factory rentals, has just been fined and has been charged 916 million VND in back taxes (Photo TL)

For the above violations, the General Department of Taxation decided to fine Saigon VRG Investment 159.6 million VND for false declaration leading to a shortage of tax payable and false declaration not leading to a shortage of tax payable.

In addition, the company must pay the outstanding corporate income tax for the three years from 2021 to 2023. The total outstanding income tax is VND586.7 billion.

The fine for late payment of corporate income tax is 74.3 million VND. The amount of value added tax that can be deducted in the next period of Saigon VRG Investment is also reduced to 95.8 million VND. The total amount of fines and tax arrears is 916.3 million VND.

Second quarter profit increased 18.5% over the same period

Regarding business activities, Saigon VRG Investment was established by Vietnam Rubber Industry Group (VRG) in 2007 with a charter capital of 250 billion VND. The company operates in the field of investment, construction and business of industrial park infrastructure, factories and residential areas.

In the second quarter of 2024, Saigon VRG Investment recorded net revenue of VND 1,937.1 billion, up 16.5% year-on-year. Gross profit was VND 243.9 billion, up nearly VND 60 billion year-on-year.

Notably, financial revenue increased from 149.6 billion to 191.5 billion VND. Mainly interest on deposits and loans. Meanwhile, financial expenses recorded 18.3 billion VND, with loan interest accounting for 16 billion.

Investment activities in joint ventures and associates are also recording a profit of VND20 billion. Sales expenses and administrative expenses account for VND2.8 billion and VND24.5 billion, respectively. After deducting all expenses and taxes, SIP recorded a profit after tax of VND332.6 billion, up 18.5% over the same period.

Holding trillions in cash, SIP earns huge profits from leasing land and factories

In the asset structure of SIP, it can be seen that this unit is holding a relatively large amount of cash. Cash and cash equivalents account for 842 billion VND. Besides, there are 3,261.4 billion VND in short-term bank deposits.

Most of the company's assets are in the form of short-term receivables along with real estate values, production and business costs, and basic construction costs invested in these real estates.

Regarding the capital structure, payables account for 18,928 billion VND, equivalent to 81% of total capital. However, this is not too big a problem for SIP. Because of which, there is 11,467.6 billion VND of unrealized revenue from land and factory leasing activities.

SIP's short-term and long-term debt amounts to VND2,180.9 billion and VND862.3 billion, respectively. Meanwhile, equity is currently recorded at VND4,384.2 billion with VND1,554.7 billion in undistributed profit after tax.

Source: https://www.congluan.vn/dau-tu-sai-gon-vrg-sip-doanh-thu-tu-cho-thue-dat-nha-xuong-bi-phat-va-truy-thu-thue-916-trieu-post306520.html