Many businesses violate in the securities sector
On December 25, the State Securities Commission (SSC) issued a decision to fine Hai Phong Securities Joint Stock Company (Haseco, UPCoM: HAC) VND647.5 million. Violations included failing to separate client and company assets, providing unlicensed advance payment services for securities sales, lending for margin trading exceeding the prescribed limit, and failing to fully disclose information as required.
Also on December 25, International Holding Corporation (UPCoM: LMH) was fined VND377.5 million for late and inaccurate disclosure of information in its financial reports. Notably, the company's 2023 audited financial report recorded a much higher loss than the initial disclosure. LMH also violated regulations on transactions with shareholders and related parties.
In particular, in the 4th quarter 2023 financial statements, the company's after-tax profit in 2023 was 4.44 billion VND, but in the 2023 audited financial statements, the company lost 70.8 billion VND.
Previously, on December 23, Vietnam Enterprise Investment and Development Joint Stock Company (VNDI, code: FID) was also fined VND215 million for late disclosure of information and incorrect profit information in financial reports.
Notably, according to the separate financial report for the fourth quarter of 2023, the company's after-tax profit in 2023 was VND 54.6 million. However, according to the separate audited financial report for 2023, the company lost VND 18.9 billion. Similarly, in the consolidated financial report for the fourth quarter of 2023, the company reported a loss of VND 2.5 billion, however, in the audited consolidated financial report for 2023, the company lost up to VND 27.3 billion.
The Company shall take remedial action by correcting or cancelling the published false information.
Businesses fined for tax and customs violations
In the field of tax, Tien Thanh Trading and Service Joint Stock Company (TTH) was fined more than 717 million VND by the Hanoi Tax Department for incorrect VAT declaration. The company also had to pay an additional 3.6 billion VND in taxes and late payment fees, bringing the total amount of fines and arrears to nearly 4.5 billion VND.
Another enterprise, Thanh Cong Textile - Investment - Trading Joint Stock Company (HOSE: TCM), announced last week that it had received an administrative penalty decision from the Post-clearance Inspection Department - General Department of Customs due to a series of violations in the management of imported raw materials, false declaration of tax-exempt subjects, and making settlement reports that did not match reality.
The Customs Department pointed out a series of violations of the law by Thanh Cong Company. Firstly, the management of imported raw materials and supplies (NLVT) under the E21 and E31 types was not strict and accurate, leading to actual inventory being less than the declared amount at the end of December 31, 2023, without an accurate explanation of the cause.
Second, there is not strict and accurate management of imported materials under type E21, and there is no timely handling of excess materials when the processing contract ends or expires.
Third, false declaration of tax exemption subjects led to a shortage of tax payable for goods in 10 on-site import declarations under type E31 and 1 import declaration under type A12.
Fourth, incorrectly declaring the currency of the shipping fee of 30 lines of goods in 17 E31 tax-free import declarations (actually VND but declared as USD), incorrectly declaring the total taxable value of 1 B11 export declaration.
In addition, there are errors such as making a final report on the use of imported materials and finished products for export that is not consistent with the data recorded in the materials and finished products tracking book; not performing the procedure of notifying the reprocessing contract and the production facility of the reprocessing party to the customs authority as prescribed; falsely declaring the actual origin of exported goods subject to tax exemption...
In particular, there are aggravating circumstances such as repeated violations. The total amount of administrative fines is more than 1.79 billion VND. In addition to the fine, the company must also pay back more than 618.9 million VND in illegal profits from the violations.
