Why was Trung Linh Phat's petroleum business license revoked?
The Ministry of Industry and Trade revoked the petroleum export and import license of Trung Linh Phat Company Limited from November 26.
Trung Linh Phat's petroleum import and export license was issued on January 8, 2021. After the license was revoked, this enterprise must send the original business license to the Domestic Market Department (Ministry of Industry and Trade) before December 7.
This company must also transfer all balance and debt of the Petroleum Stabilization Fund to the state budget. According to data from the Ministry of Finance, the balance of the stabilization fund at this enterprise was nearly 27 billion VND, as of the end of the second quarter.
Trung Linh Phat Company Limited was granted Business Registration Certificate No. 2700522686 by the Department of Planning and Investment of Ninh Binh province on July 27, 2009; 11th change on August 31, 2020. This is a 100% private enterprise operating in the fields of trading, wholesaling, retailing gasoline and some other fields.
According to Lao Dong's investigation, in the process of doing business in petroleum, this enterprise has been involved in many controversies related to the roundabout purchase and sale of invoices, using invoices of dissolved enterprises that were warned by the Tan Binh District Tax Department in 2023.
According to the Tan Binh District Tax Department, Trung Linh Phat Company Limited - Ho Chi Minh City branch trades in oil products, but the company does not have a warehouse.
Notably, this enterprise declared the value of goods sold to be very small compared to the value of goods purchased. Trung Linh Phat Company Limited has large revenue and output and input VAT, and does not generate VAT payable.
In particular, there is a difference between VAT declared revenue and invoiced revenue. Use of VAT invoices purchased by businesses that are no longer operating at the registered address and dissolved businesses.
Trung Linh Phat Company Limited has a situation of exporting and selling goods in a circular manner, the business selling goods is also the business purchasing goods.
The enterprise has a branch operating in Ho Chi Minh City, but purchases goods from enterprises outside the province with goods originating in Ho Chi Minh City.
Violation of the Petroleum Price Stabilization Fund
Trung Linh Phat Company Limited was once fined for not transferring the balance of the Petroleum Stabilization Fund to a bank deposit account. Earlier this year, the Ministry of Industry and Trade required the company to pay back more than VND26 billion owed to the stabilization fund, after several reminders.
Most recently, Trung Linh Phat was fined VND245 million for fraudulently declaring its distribution system and failing to maintain a minimum level of gasoline reserves. In mid-June, the company also had its gasoline import and export business license revoked for one month.
On the website, this company introduces itself as operating in many fields: petroleum trading, transportation, restaurant and hotel business, resort tourism and import and export.
According to the conclusion of the Inspectorate of the Ministry of Industry and Trade on the inspection of petroleum, although being the focal point, Trung Linh Phat Company Limited is also on the list of enterprises importing diesel oil lower than the oil import limit assigned by the Ministry of Industry and Trade in 2021 in Official Dispatch No. 8266 dated December 22, 2021.
This company also did not send an adjustment registration to the Ministry of Industry and Trade when there was a change in the trader's gasoline distribution system.
After Trung Linh Phat's license was revoked, the market still has 30 key petroleum trading enterprises.
According to this year's plan, the Ministry of Industry and Trade will inspect the maintenance of business conditions of petroleum enterprises. The inspection list includes 6 key enterprises and 8 distributors. In addition to this number, the management agency will also inspect and handle 24 enterprises (4 key enterprises, 20 distributors) with signs of violations through review reports.
