In 2017, Pham Xuan Tinh became CEO while Tam served as board chairman, directing all company operations.

From August 13, 2019 to October 7, 2019, an inspection team from the HCMC Tax Department (now District II Tax Branch) audited Asanzo’s tax compliance from 2016 through July 2019.

Findings showed Asanzo bought components from Tran Thoan Company (director and legal representative: Tran Quoc Thoan) and contracted VTB Company (director and legal representative: Nguyen Van Hoang) to assemble finished air conditioners (with capacities up to 90,000 BTU).

The finished products bore Asanzo labels and Asanzo-branded packaging, and were then sold to Asanzo Refrigeration Company without issuing invoices and without declaring taxes (kept off the official accounting books). Asanzo also used invalid VAT invoices that described the goods as “air conditioners,” contrary to reality where they were “air conditioner components,” to book input costs and declare tax as if conducting trading activity.

Tran Thoan Company issued VAT invoices for finished goods directly to Asanzo Refrigeration Company.

On October 30, 2019, the HCMC Tax Department referred the case file, which showed signs of criminal violations, to the HCMC Police Investigation Agency for handling.

A tax assessment concluded that, for the inspection period from 2017 through Q2 2019, Asanzo evaded two types of taxes totaling more than 15.7 billion VND (about 4.1 billion VND in VAT and 11.5 billion VND in special consumption tax) - approximately 641,000 USD in total (VAT about 167,000 USD; special consumption tax about 470,000 USD).

During questioning, Pham Xuan Tinh stated that he signed documents and records related to Asanzo’s management, production, and business operations under instructions from Pham Van Tam.

On March 24, 2020, the HCMC Tax Department confirmed that Asanzo had remitted a remedial tax payment totaling 15.8 billion VND, approximately 645,000 USD.

Links to Sa Huynh Company

Tam is accused of using Sa Huynh Company to smuggle 1,300 ovens for Asanzo.

Sa Huynh Company was initially registered on July 11, 2018, with Huynh Thi Sa Quol as director and legal representative. Later in 2018, the director and legal representative changed to Truong Ngoc Liem.

On September 5, 2018, Sa Huynh filed an import declaration at Phuoc Long 3 ICD Port, Ho Chi Minh City. The declaration listed 970 plastic lids for glass convection ovens, 940 glass bowls, 118 timers, 1,060 plastic handles, and 1,120 grilling racks. Condition: 100% new. Origin: China. Declared value: 212 million VND, approximately 8,653 USD.

The signature and seal on the import file and related documents were in the name of Huynh Thi Sa Quol. The consignment was channeled to the yellow lane and then selected for 100% physical inspection.

Customs inspection determined the shipment consisted of 1,300 complete Asanzo-branded glass convection ovens, disassembled into parts, 100% new, with no origin indicated. This is a regulated import that requires state quality registration prior to import. Customs therefore denied clearance and summoned Sa Huynh’s representative for violation handling.

On October 9, 2018, Truong Ngoc Liem (Sa Huynh’s representative) and Nguyen The Tai (customs service agent) met with customs to request clearance of the shipment but were refused.

On December 3, 2018, HCMC Customs (now Regional Customs Branch II) referred the administrative violation file, which showed signs of criminal offenses, to the HCMC Police Investigation Agency.

A forensic assessment by the Quality Assurance and Testing Center 3 found the seized goods were new and unused. Based on the product configuration described in the user manual stored in the oven body and practical operation tests, the components could be assembled into a complete oven intended for household food grilling.

The HCMC criminal-proceedings valuation council concluded that, at the time of seizure in September 2018, the wholesale value of Sa Huynh’s smuggled goods was more than 414 million VND, approximately 16,898 USD (including VAT).

On March 3, 2020, the HCMC Police Investigation Agency initiated prosecution against Truong Ngoc Liem for “smuggling.”

At the investigation agency, Liem declared that Sa Huynh Company was in fact controlled by Pham Van Tam. When the violation was discovered, Tam allegedly asked Liem to serve as Sa Huynh’s legal representative. Liem agreed and represented Sa Huynh in working with customs to seek clearance for the unlawful shipment.

Tam, however, denied smuggling, claiming that when Sa Huynh’s Asanzo-branded ovens were found to be misdeclared, he only learned from the press that the shipment was related to Asanzo. He contacted Liem (a former employee) to inquire because he feared it might affect company operations. Tam asserted he was not Sa Huynh’s owner, did not ask Liem to change business registration or to be named director, and did not ask Liem to contact customs to clear the unlawful shipment.

Based on collected documents, authorities concluded there is sufficient basis to prosecute Tam for smuggling.

Thanh Phuong