Habeco told to pay VND1.8 trillion in back taxes

09-May-2018 Intellasia | The Saigon Times | 6:01 AM Print This Post

The State Audit Office of Vietnam (SAV) has requested the State-owned Hanoi Alcohol Beer and Beverage Company (Habeco) to pay over VND1.8 trillion (US$81.1 million) in back taxes, Lao Dong newspaper reports.

SAV says in its Habeco auditing report that the amount includes VND4.5 billion in value-added tax, over VND441 billion in special consumption tax, about VND9 billion in corporate income tax, VND381 million in personal income tax, and about VND1.4 trillion in others.

The 2016 sales revenue of Habeco’s holding company rose by 12.3 percent against 2015 to over VND7.6 trillion (US$337 million). The figure includes around VND6.63 trillion in sales of 525.9 million litres of beer, VND1.03 trillion in material sales, and VND9.5 billion in sales of other items, according to the report.

SAV also points out some shortcomings in the management and use of State capital and assets at Habeco.

Habeco did not purchase main materials through auctions but invited suppliers to make competitive offers for supplies worth over VND5 billion (US$220,000) each. This was against its own principle regulated in Decision 173/QD-Habeco on purchase of materials in line with regulations on the procurement of goods and services.

The Hanoi-based brewery only invited suppliers to make competitive offers in a limited number of occasions to buy barley, malt and other grains that have been steeped, germinated, and dried for brewing or distilling and vinegar-making. The company opted for the lowest bids and bought from various suppliers.

Therefore, the SAV says this business practice has killed competition, and led to possible collusion among suppliers.

There were major differences between the actual production capacity and assigned beer volume targets among its subsidiaries, ranging from 12.3 percent to a staggering 106.9 percent of capacity.

Habeco had yet to establish a relationship between its purchase prices and its subsidiaries’ profits while buying the products it outsourced. Instead, the determination of purchase prices was based on previous years’ prices, taxes and other costs.

In 2016, Habeco clinched license agreements with eight of its subsidiaries, with a combined volume of 68.5 million litres of beer. Under the deals, these subsidiaries were asked to offer their selling prices higher than the base levels. Habeco should have checked them, but it was instead reliant on their reports. Thus, there were discrepancies between reported and actual prices.

Earlier, SAV suggested collecting nearly VND2.5 trillion (US$109 million) from Saigon Beer, Alcohol and Beverage Corporation (Sabeco) in the period prior to 2016.

http://english.thesaigontimes.vn/59616/Habeco-told-to-pay-VND18 trillion-in-back-taxes.html


Category: Business, Vietnam

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