Vietnam slaps polluting steel firm Formosa with $70 mln tax bill

By Anh Minh   July 11, 2016 | 01:03 am PT
The storm has not blown over yet for the Taiwanese giant.

Ha Tinh Province has asked the General Department of Taxation to look into seemingly fraudulent value-added tax (VAT) claims by the trouble-besieged Formosa.

According to the Ha Tinh Tax Department, Formosa Ha Tinh Steel Co., Ltd owes around VND 1.555 trillion ($70 million) to the state budget, of which VND1.444 trillion ($65 million) comes from tax refunds issued between June 2014 and December 2015, and VND 111 billion ($5 million) in tax deductions.

The tax office stated that Formosa had dawdled to declare import documents and invoices together with VAT invoices for construction contracts.

Formosa said it deals with around 3,000 documents per day, including import invoices and construction contracts, so it takes time to process them. 

Formosa’s tax refunds for imports stand at 1.132 trillion ($50.1 million), accounting for 73 percent of the total.

In May this year, the firm's tax arrears reached VND 5.5 billion ($250,000) after it declared invalid codes for certain items.

Taiwanese firm Formosa has hit the headlines recently for causing one of the biggest environmental disasters in Vietnamese history, killing tons of fish across four coastal provinces. This company has officially apologized to the Vietnamese people and promised to pay compensation of $500 million to make up for the damage.

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