“Re-evaluate Land Lease Rates for the ‘Mega Project’ Dai Ninh Urban Area Involving Entrepreneur Nguyen Cao Tri”

The People’s Committee of Lam Dong Province has assigned the Department of Finance to coordinate with relevant departments and the People’s Committee of Duc Trong District to consider the proposal of the Provincial Tax Department related to land use fees at the commercial, ecological tourism, and resort urban area project.

The project, known as Dai Ninh Urban Area, is developed by Saigon Dai Ninh Tourism Investment Joint Stock Company (Saigon Dai Ninh JSC). Mr. Nguyen Cao Tri has been the legal representative of Saigon Dai Ninh JSC since 2021.

According to the report of the Lam Dong Tax Department, the instruction of the Provincial People’s Committee to reduce the land use fee has helped the company alleviate financial pressure.

However, upon reviewing the files for the Inspection Team of the Central Inspection Committee, the Tax Department found that the adjustment of land use fees and late payment fees did not comply with the Land Law, Tax Management Law, and guiding documents.

Therefore, the Lam Dong Tax Department proposed that the Provincial People’s Committee review the related decisions and direct the Council for Land Price Appraisal to determine the financial obligations of the project from February 2012 to October 2018.

Saigon Dai Ninh JSC was granted an investment certificate for the Dai Ninh Urban Area project in December 2010. The project covers an area of 3,595.5 hectares with an expected investment capital of VND 25,243 billion.

In April 2014, the Lam Dong People’s Committee approved the land use fee for Saigon Dai Ninh JSC to pay to the state budget when converting the land use purpose within the project. The land use fee for the area of 166.5 hectares of residential land in this project is VND 226 billion.

In January 2018, the Provincial People’s Committee assigned the Department of Finance to urge organizations with budget debts up to October 2017, including VND 158 billion in land use fees of Saigon Dai Ninh JSC.

In case the company is unable to fulfill its obligations, the Department of Finance proposed that the Provincial People’s Committee consider converting the project to an annual land lease or revocation in accordance with regulations.

In April 2018, the Provincial People’s Committee directed the Department of Natural Resources and Environment to coordinate and consider the proposal of Saigon Dai Ninh JSC to switch to annual land rental.

In May 2018, the Department of Natural Resources and Environment proposed that the Provincial People’s Committee approve the proposal of Saigon Dai Ninh JSC to adjust the investment content, converting the land type of more than 166.5 hectares of land from residential to production and non-agricultural business purposes, with the form of annual land rental. The Provincial People’s Committee then assigned the Department of Planning and Investment to consider this proposal.

In October 2018, the Lam Dong People’s Committee decided to adjust the land use form for Saigon Dai Ninh JSC and directed the Tax Department to collect the notices of land use fee payments, with a reduced amount.

In November 2018, following the directive of the Tax Department, the Duc Trong District Tax Office (now known as the Duc Trong – Don Duong District Tax Office) issued a document to revoke the notices of land use fee collection from Saigon Dai Ninh JSC, including VND 158 billion in land use fees and VND 104 billion in late payment fees.

On May 26, 2020, the Duc Trong – Don Duong District Tax Office notified that the land rent from February 7, 2012, to December 31, 2019, for the area of 166.53 hectares of land granted to Saigon Dai Ninh JSC amounted to more than VND 3.2 billion. The company has paid this amount to the state budget.