The Taxman Cometh: Developer Owes Over $550,000 in Back Taxes, Project Faces Recall

For years, the investor of an unfinished project failed to fulfill their tax obligations, leading to a recommendation by the Tien Giang provincial authorities to the People's Committee to reclaim the land.

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The Inspectorate of the Department of Natural Resources and Environment of Tien Giang Province has issued an inspection conclusion on the compliance with land laws by Hoang Kim Nhung Co., Ltd. (Ho Chi Minh City) – the investor of My Phuoc Tay People’s Cemetery Park Project (Cai Lay Town, Tien Giang Province).

My Phuoc Tay Cemetery Park Project is abandoned, with the investor unable to pay taxes.

The My Phuoc Tay Cemetery Park Project was approved by the Tien Giang Provincial People’s Committee, with a decision to appoint the investor and allocate land to Hoang Kim Nhung Co., Ltd. in 2014.

The project covers an area of over 48,942 square meters and is expected to be completed by August 2064. The land was handed over to the company on May 29, 2015, with the state collecting land use fees. After receiving the land, the investor proceeded with construction permits and built a perimeter fence, a manager’s house, a funeral hall, Buddhist statues, and other facilities for burial services. They also planted trees and constructed roads within the park.

However, the company has only paid 5 billion VND out of the total land use fee of over 12.4 billion VND. As of now, the total tax debt owed by the company amounts to more than 13 billion VND (including over 7.4 billion VND in land use fees and over 5.59 billion VND in late payment fees). Due to their failure to fulfill tax obligations, Hoang Kim Nhung Co., Ltd. has not been granted a Certificate of Land Use Rights and Ownership of Houses and Other Assets Attached to Land.

For years, the My Phuoc Tay Cemetery Park has been left abandoned, with overgrown grass and deteriorating facilities. In 2020, the Cai Lay Tax Department issued a decision to enforce administrative tax collection measures by deducting money from the company’s bank account. However, the company’s bank account had no balance to fulfill the enforcement decision. At the time of the inspection, the company still had not paid the full land use fee to the state.

The Tien Giang Department of Natural Resources and Environment’s inspection team concluded that the violations committed by Hoang Kim Nhung Co., Ltd. fall under the category of state land retrieval as per regulations. They recommended that the Tien Giang People’s Committee issue a decision to retrieve the land in accordance with the law.