On August 8, the Government Inspectorate issued Notice No. 2777/TB-TTCP on the Inspection Conclusion on the compliance with policies and laws in gold business activities and other related issues at Bao Tin Manh Hai Joint Stock Company, Bao Tin Manh Hai Jewelry Joint Stock Company and Mi Hong Co., Ltd.
After the announcement was announced, Bao Tin Manh Hai issued a notice, providing information about the causes and remedies for the shortcomings pointed out by the inspection agency.
Explaining the deposit for gold bars and tax declaration
According to Notice No. 2777/TB-TTCP, at Bao Tin Manh Hai Joint Stock Company, the Government Inspectorate determined that the enterprise received deposits from a number of customers buying gold bars but did not deliver the gold immediately, violating the regulations in the License for trading gold bars.
Businesses are also not correctly identified for the cost of goods purchased on the value-added tax (VAT) declaration, leading to incomplete VAT declaration and having to pay additional fees for gold, silver, and gemstone trading and processing activities.
In the announcement, Bao Tin Manh Hai said that receiving deposits only arose in 5 transactions in 2023 and 2 transactions in 2024. According to the company's explanation, the reason is that gold bars were torn in packaging and had to wait to be transferred to SJC to be closed.
Bao Tin Manh Hai affirmed that in addition to the above cases, no other deposit transactions arose.
Regarding the lack of VAT declaration, the business side believes that the reason stems from the difference between the method of calculating cost of goods sold according to the Accounting Law and the direct VAT calculation regulations.
The business said that it has proactively contacted the tax authorities and completed the supplementary payment.
The Government Inspectorate's notice also requires inspected and examined enterprises to proactively review shortcomings and violations related to obligations to the state budget to declare and supplement and work with tax management agencies to handle according to regulations.
Overcoming issues related to e-commerce and money laundering prevention
Regarding Bao Tin Manh Hai Jewelry Joint Stock Company, the inspection conclusion pointed out a number of violations in complying with regulations on anti-money laundering, including content related to internal regulations, large value transaction reports, collection and updating customer identification information, and classifying customers by risk level.
The inspection agency also determined that the enterprise re-registered the website with the Ministry of Industry and Trade late compared to regulations; the information on the website at the time of inspection did not clearly show whether the purchase price and selling price included or not included related costs.
According to the announcement, Bao Tin Manh Hai explained that the website re-registration was delayed due to internal coordination when upgrading the digital platform. The enterprise said that the website notification procedure to the Ministry of Industry and Trade was approved and completed on January 20, 2025, and information about prices and transaction fees is currently public.
Regarding the regulations on Anti-money laundering, businesses believe that the reason is the slow updating of new laws and regulations (issued in the period 2023 - early 2024) leading to shortcomings in reporting and risk classification.
Bao Tin Manh Hai said that it has paid fines, completed internal procedures, sent personnel to participate in training with the State Bank and professional training for all officials and employees.
Notably, in the press release, Bao Tin Manh Hai affirmed: "Through inspections, functional agencies have not recorded any signs of acts of manipulation, hoarding goods, pushing prices, smuggling, speculation or profiteering at Bao Tin Manh Hai".
Bao Tin Manh Hai said that business operations, transactions and customer service are still going on normally; and consider the inspection conclusion as the basis for continuing to review and improve management quality and compliance with the law.
