Firm accused of tax evasion, titanium smuggling

Saturday, Feb 22, 2014 12:09

Exploiting titanium at a factory in Binh Thuan Province. — Photo

HA NOI (Biz Hub)  — The General Department of Customs has revealed tax evasion and smuggling of titanium ore by the Binh Thuan Trade and Mineral Investment Joint Stock Company (KSBT).

The company's tax evasion and smuggling of thousands of tonnes of titanium ore were uncovered by the Labour newspaper after its investigation in July and November last year.

During the investigation, some 39 customs clearance documents reportedly showed evidence of tax evasion and illegal exports by this company.

To Bai Tich, general director of KSBT, said all his company contracts were signed via fax.

However, 37 out of 39 contracts to sell titanium ore between 2009 and 2012 did not have the specific account numbers of the buyers.

They were mostly Chinese companies.

According to the Viet Nam Immigration Department of the Ministry of Public Security, many contracts were signed and sealed when the director had gone abroad on business.

However, the director told the authorities that all the contracts had been signed and sealed in his office in Viet Nam.

The Anti-smuggling Department of Chinese Customs informed the Vietnamese authorities that 10 Chinese companies, which often bought titanium ore from KSBT, were registered with the Chinese Customs.

But the names of seven out of these 10 companies did not match with the ones registered with the Chinese Customs.

They are actually bogus companies, Viet Nam Customs reported.

KSTB made illegal trading contracts lawful through commercial banks.

Some contracts were signed without invoices.

This means that a large volume of titanium ore was out of the Viet Nam authority's control.

The case files had been transferred to the investigating agency under the Ministry of Public Security. — VNS

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