Danang Rubber JSC to be fined nearly $80,000
Danang Rubber JSC to be fined nearly $80,000
The Danang Department of Taxation has just decided to penalise the administrative violations of Danang Rubber JSC (code: DRC) due to the change of company’s profit after auditing.
DRC will have to pay VND1.796 billion ($79,140), including VND1.235 billion ($54,420) for the penalty and VND561 million ($24,720) for late payment.
The State Audit Office of Vietnam revised the commercial discount and selling price reduction that DRC has subtracted from its revenue in 2016. This adjustment led to a change in the company's profit.
DRC claimed that the commercial discount and selling price reduction are essential to promote sales. At the end of each term, DRC calculates the total amount of discounts based on the sales to each client. This is discounted from the next transaction with the client and the company produces an adjustment invoice.
Thereby, in late 2016 the company subtracted these amounts to ensure the accuracy of the valuation of its expenses in line with the principles of accountancy.
DRC sent recommendations to the State Audit Office of Vietnam which were not approved. Thus, the company has paid the penalty issued by the Danang Department of Taxation.
DRC, originally an American military retreading factory, has been continuously developing for over 35 years. In 2018, it set a target of VND4.592 trillion ($202.3 million) in revenue, up 20 per cent, and VND205 billion ($9 million) in pre-tax profit, down 1 per cent on-year.
