Hoang Anh Gia Lai fined to $476,086 in tax arrears

Hoang Anh Gia Lai fined $476,086 in tax arrears

HAG on January 23 received Decision No.36/QD-CT from the Gia Lai Tax Department on sanctioning its tax-related administrative violations which it only published on March 15.

HAG was supposed to pay tax arrears and penalties within 10 days of receiving the decision. However, at the time of receiving the decision, HAG was still working to explain its case and provide more information to the tax authorities.

HAG was fined to over VND5.73 billion ($249,130) in tax arrears, VND3.61 billion ($156,956) of which is value-added tax (VAT), VND1.93 billion ($83,913) is corporate income tax, and VND200 million ($8,695) is personal income tax.

Besides tax arrears, HAG was charged VND4.12 billion ($179,130) in late payment fee and VND1.1 billion ($47,826) in administrative penalty for false declaration.

In the last quarter of 2018, HAG’s net revenue was only VND1.043 trillion ($45.35 million), including VND618 billion ($26.87 million) revenue for fruit, making up 59 per cent. Revenue from rubber latex also increased significantly to VND221 billion ($9.61 million) as the price of rubber bounced back.

Notably, HAG’s interest expenses decreased to VND326 billion ($14.17 million). However, the liquidation and conversion of orchards resulted in a loss of VND253 billion ($11 million) in the fourth quarter of 2018.

In 2018, HAG produced a total revenue of VND5.392 trillion ($234.43 million), an increase of 11 per cent vis-á-vis 2017. Nevertheless, interest payments after its huge loans are eating into the gross profit.

In 2018, HAG had to pay a total of VND1.54 trillion ($66.96 million) interest after its financial loans, equivalent to VND4 billion ($173,913) per day.

Closing the trading session on March 15, HAG's market price was VND5,770 ($0.25) and 3.6 million units have been matched. The company’s market capitalisation is about VND5.351 trillion ($232.65 million).