Thuduc House confirmed that it has received the tax enforcement decisions from the Ho Chi Minh City Tax Department. The enforcement involves freezing funds from the company's bank accounts to recover the unpaid amount. This action follows five similar decisions issued by the department on August 19.

Founded in 2001, Thuduc House has long been a key player in Ho Chi Minh City's real estate market, known for its numerous condominium projects, particularly in Thu Duc City. The company went public in 2006, listing on the Ho Chi Minh City Stock Exchange under the ticker symbol TDH.

The VND 91.1 billion ($3.8 million) penalty is related to a previous VAT refund that Thuduc House received between February 2018 and June 2019. The company was later found to be implicated in an electronics smuggling case, where it was exploited by criminals to secure fraudulent tax refunds.

In a ruling issued on May 3, the High People’s Court of Ho Chi Minh City ordered Thuduc House to repay the full VND 365.5 billion ($15.2 million) VAT refund to the Ho Chi Minh City Tax Department as part of its restitution. The court also mandated that the Ho Chi Minh City Civil Judgment Enforcement Department transfer the funds, which had been placed in a temporary holding account, to the tax authorities.

At the same time, 10 defendants involved in the smuggling case were ordered to reimburse Thuduc House VND 340 billion as compensation for the damages incurred by the company.

Thuduc House claims that the VND 91.1 billion penalty is based on the delayed repayment of the VND 365.5 billion VAT refund, which the defendants in the case exploited for financial gain. To recover this amount, the Ho Chi Minh City Tax Department has been issuing monthly enforcement orders, freezing funds in the company’s bank accounts.

Thuduc House has filed a lawsuit in response, arguing that the tax enforcement actions are illegal. Meanwhile, the Ho Chi Minh City Tax Department continues to assert that the company owes a total of VND 549.5 billion in taxes and fees as of July 31, including VND 365.5 billion in taxes and VND 183 billion in late payment penalties.

Anh Phuong