Series of real estate companies owe hundreds of billion dong in taxes

Spring Light City project of Ben Thanh-Mercury Co., Ltd., the company with the highest tax arrears

According to the Ho Chi Minh City Department of Taxation, 256 companies owe more than VND1.352 trillion ($58.8 million) in total in taxes arrears and penalties. The biggest debtors, some owing up to or dozens or hundreds of billions of dong, hail from the real estate sector.

Leading the list of tax debtors, Ben Thanh-Mercury Company Limited owes VND356 billion ($15.5 million) in tax. This company was previously named on a similar list two months ago, then owing VND350.5 billion ($15.24 million).

Moreover, Ben Thanh-Mecury is the developer of the Spring Light City project on Nguyen Dinh Chieu Street, Da Kao ward, District 1, Ho Chi Minh City with the total area of 15,770sq.m. This project has been appearing in local media due to a lot of irregularities in its compensation and resettlement policy affecting more than 200 households, resulting in heated complaints.

Thai Thinh Capital JSC is the runner up with the tax arrears of VND119 billion ($5.17 million), followed by Binh Duong Building Stone Company Limited’s branch in Ho Chi Minh City with over VND118 billion ($5.13 million), and Hong Quang Real Estate and Construction JSC with over VND92 billion ($4 million).

Additionally, a lot of other real estate companies owe a great deal in taxes, such as Thanh Nien Corporation with VND34 billion ($1.48 million), Diep Bach Duong Real Estate Co., Ltd. with VND35 billion ($1.52 million), Thang Long Real Estate Transaction Floor JSC with VND10 billion ($0.44 million), Sai Gon Phuong Nam Properties Corporation with VND14 billion ($0.6 million), Nam Huy Hoang Construction and Design JSC with VND17 billion ($0.74 million), Saigon Real Estate Development JSC (SGRED) with VND12 billion ($0.52 million), and Kim Oanh Development and Investment JSC with VND5 billion ($0.22 million), among others.

In order to collect the tax arrears, the Ho Chi Minh City Department of Taxation has resorted to debt enforcement measures, such as freezing bank accounts to deduct tax payments, and stopping the use of invoices.

Earlier, the Ho Chi Minh City Department of Taxation also issued Decision No.7345/QD-CT penalising the administrative violations of Nam Long Group. Before the scandal of tax arrears, this company has received repeated complaints about the quality of its buildings, with residents usually complaining leakages, and cracked walls at its Ehome 3 project.