Traphaco and Cadivi fined for tax arrears
Traphaco and Cadivi fined for tax arrears
The Hanoi Department of Taxation has just issued a fine of nearly VND1 billion ($44,000) to Traphaco JSC (code: TRA) and VND5.5 billion ($242,300) to Vietnam Electric Cable Corporation (Cadivi, code: CAV) for erroneous tax declaration.
Due to the erroneous declaration of value-added tax (VAT) and corporate income tax (CIT), Traphaco was fined for 20 per cent of the difference between its declared and actual tax obligations, equalling VND159 million ($7,000), according to Article 1 of the Law on Amendments and Supplements of Articles of the Law on Tax Administration.
The company’s tax burden increased by VND795 million ($35,000) after the inspection, including VND715 million ($31,500) in CIT and VND80 million ($3,500) in VAT.
Traphaco also has to pay VND20 million ($880) in penalty for late payment (as of June 15, 2018). Traphaco has to calculate and pay the additional late payment fees applicable between June 16 and the time the company repays the state.
Earlier, in May 2017, Traphaco was sent a notice over its tax violations in 2014, 2015, and 2016. Total additional tax, penalty, and the late payment fees of the company come to VND5 billion ($220,000).
According to Traphaco’s consolidated financial statement, sales in 2017 were over VND1.87 trillion ($82.4 million), equalling 94 per cent of the yearly plan. After-tax profit was VND242 billion ($10.66 million), up 14 per cent on-year, and equivalent to 99.6 per cent of the annual target.
Meanwhile, Cadivi was also fined for a total of VND5.5 billion ($242,300) after the inspection during 2016-2017, according to Decision No.1101/QD-TCT of the General Department of Taxation.
Accordingly, this company has to pay VND4.3 billion ($190,000) in additional tax, VND857 million ($37,800) in penalty for administrative violations and invoice usage, and VND363 million ($16,000) in penalty for late payments.
Cadivi has to calculate by itself and pay the additional late payment fees applicable from June 16 until the company makes its payments to the state.
In 2017, Cadivi recorded VND326 billion ($14.36 million) in after-tax profit, up 36 per cent on-year. In 2018, Cadivi set the target of VND8.209 trillion ($361.63 million) in sales revenue, up 20 per cent against last year, while pre-tax profit is targeted at VND455 billion ($20 million), up 11 per cent on-year.
